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I have noticed that when flights originate in the USA (With both Delta and United) that the initial baggage charge is $USD25. But when taking flights from Canada back to the USA the baggage fee is $CA25.

Is there any explanation for the difference in baggage fees other than "because"?

edit

Currently $USD25 is $CA33 and $CA25 is $USD19, so there is a significant price difference that has nothing to do with exchange rates. (And 2 weeks ago when I did the same trip the exchange rate was even worse and the equivalent CA->USA price was $USD18)

  • Were you expecitong an accurate conversion to CAD, down to the last cent? If so, at which exchange rate? Is the price supposed to change daily? – fkraiem Jul 25 '16 at 14:44
  • @fkraiem The current conversion of $CA25 is $USD19 so its nothing to do with exchange rates. If it was a conversion rate issue then the fee should be closer to $CA33 – Peter M Jul 25 '16 at 14:47
  • Isn't it bound to the currency of payment? How much would it cost if you'd pay with USD in both directions? – Rg7x gW6a cQ3g Jul 25 '16 at 14:50
  • @9ilsdx9rvj0lo See my edit – Peter M Jul 25 '16 at 14:53
  • They are price points that consumers will tolerate. There's no further logic to it, it is not as though the price is related to the marginal cost of transporting the bag. – Calchas Jul 25 '16 at 15:06
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The fact that $25 USD and $25 CAD have different values is irrelevant.

The US bag bee is $25 USD and the Canadian bag fee is $25 CAD. It's really no more complicated that than. The airlines don't take into account exchange rates.

Note, this applies when and where you pay the fee. If you book a cross-border itinerary and prepay the bag fee, you will pay both in your local currency, along with the ticket.

If you pay for the return at the airport, you are charged that fee in that local currency.

So, to the airline, there is no difference, those are just the two local fees.

  • I think that @calchas also has a point about price points. Especially when the airline requests people to gate check bags for free - and hence effectively discounting the checked bag by $LocalCurrencyFee – Peter M Jul 25 '16 at 15:15
  • @Peter M, yes. The fact that both are "25" is as much psychological as it is based on cost. – Johns-305 Jul 25 '16 at 15:47

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