The Hidden Cost of Holiday Travel: How Airlines Bury Hundreds in Fees
The Hidden Cost of Holiday Travel: How Airlines Bury Hundreds in Fees
Your $299 ticket is actually $650. Here's what airlines won't say — and how to fight back.
The airline industry made $54.1 billion from fees in 2023. TSA just started charging passengers without REAL IDs. Airport parking rates jumped 12% for Christmas week. Even Southwest — the last holdout — now charges for checked bags.
Here's what changed in 2025, what it costs you, and how to fight back.
The Airline Fee Explosion: $12.4 Billion and Counting
In November 2024, a Senate investigation revealed what travelers already knew: airlines are making billions from fees that used to be included in your ticket.
5 airlines
Top 10 airlines
Now standard across all carriers
The investigation examined American, Delta, United, Frontier, and Spirit — finding systematic practices designed to maximize revenue:
- Seat fees: $10-$199 per flight depending on route and your booking history
- Checked bags: $35-$45 for the first bag (Southwest ended free bags in May 2025)
- Carry-on fees: $40-$60 on budget carriers like Spirit and Frontier
- Family separation tactics — forcing parents to pay to sit with children under 13
- Gate agent incentives — Frontier pays staff $10 bonuses for forcing carry-on checks
Most frustrating: these fees avoid the 7.5% federal excise tax on airfare, costing the FAA trust fund $367 million that should fund airports.
We booked four tickets to Denver for $1,400. After bags, seats, parking, and the REAL ID fee, we paid $2,422. Never again.
— The math every family should do before booking
What Each Airline Actually Charges
A $200 Spirit ticket can become $500 after fees. A $350 Delta ticket might actually be cheaper once you calculate bags, seats, and carry-on charges.
Smart move: Check the total cost across airlines with Traversatile's Baggage Fee Calculator before booking.
TSA's New $18 Fee: Forgot Your REAL ID? Pay Up
On November 20, 2025, TSA proposed charging passengers $18 to pass through security without a REAL ID-compliant license or passport.
How it works: If you show up without proper ID, you can use biometric kiosks (facial recognition, fingerprints) to verify your identity. The fee covers 10 days of access and pays for the technology.
May 7, 2025: REAL ID enforcement began — all domestic travelers need compliant ID or passport
November 20, 2025: TSA proposes $18 alternative verification fee
Coming soon: Implementation date TBD (currently in public comment period)
Look for a gold or black star (★) in the upper right corner of your driver's license. No star = not compliant = $18 fee or passport required.
Alternatives if you don't have a REAL ID:
- Valid U.S. passport or passport card
- Military ID
- Enhanced driver's license (available in limited states)
- Pay $18 fee at airport (valid 10 days)
The problem: Millions still don't have REAL IDs. During holiday travel — the busiest time of year — alternative verification adds 15-30 minutes to already long security lines. Plus $18 per person, each way.
- Shoes stay on (July 2025) — All travelers, not just PreCheck
- 11 items exempt from 3-1-1 rule — Baby formula, breast milk, medications (at airports with CT scanners)
- Lithium batteries banned from checked bags (March 2025) — Power banks must stay in carry-on. This includes electric toothbrushes with built-in power banks.
- Samsung Galaxy Note 7 permanently banned — Cannot be brought on flights in any form (carry-on, checked, or on your person) due to fire/explosion risk.
- Mobile driver's licenses accepted — Digital IDs work at 250+ airports
Not sure what you can bring? Use TSA Smart Checker to verify items in seconds before you pack.
You CANNOT pack these in checked luggage:
- Electric toothbrushes with built-in power banks — Must be in carry-on
- Any portable chargers or power banks — Carry-on only (new March 2025)
- Samsung Galaxy Note 7 — Banned entirely from all flights due to fire risk
TSA will confiscate these items if found. Check before you pack with TSA Smart Checker.
Airport Parking: The Silent Budget Killer
Holiday parking rates surge 8-12% above normal weeks. For a 7-day trip, you're looking at $140-280 depending on the airport.
vs. prior week
Major airports
Some lots (May 2025)
What you'll pay during holidays (7-day trip):
- Atlanta (ATL): $140-210
- Los Angeles (LAX): $210-266
- Denver (DEN): $175-245
- NYC (JFK/LGA): $231-280
- Chicago (ORD): $196-252
Smart alternatives:
- Book off-site parking 10-14 days ahead ($7-12/day vs. $30-40 on-site)
- For trips under 4 days, rideshare can be cheaper than parking
- Beware rideshare surge pricing Wednesday before Thanksgiving and Sunday after
The Real Math: Family of 4 to Denver
4 tickets @ $350
After all fees
Want to avoid bag fees entirely? SmartPac AI creates optimized packing lists that fit carry-on limits and pass TSA screening.
How to Fight Back
Book Christmas 51 days before.
Fly Mon-Wed to save 13%.
Take layovers to save 22%.
• Free checked bags ($70+ roundtrip)
• Priority boarding
• $200+ value per year
• Use compression bags
• Wear your bulkiest items
• Empty water bottle (fill after TSA)
• Budget airlines often cost more
• Book direct (better change policies)
• Set Google Flights price alerts
Bottom Line
That $299 holiday ticket is really $500-700 once you add fees. Airlines made $54 billion from these charges in 2023, and they're not slowing down.
But you can fight back: Calculate total costs before booking, pack strategically to avoid fees, get your REAL ID before December, and book parking early.
The fees aren't going away. But with the right tools and planning, you don't have to get gouged.
Before Your Next Booking
Don't let hidden fees surprise you. Here's the exact order to check:
About Traversatile: We're building travel intelligence for the modern traveler. No guessing, no surprises, no getting caught off guard at security. Just clear information, smart tools, and the confidence to navigate travel chaos like a pro.
Last verified: November 24, 2025 | Sources: TSA.gov, Federal Register, Senate PSI Report, airline press releases, Way.com parking data, NerdWallet airline analysis