Patent US 7,613,622

A system and method is provided for categorizing airline passengers traveling with and without baggage and unbundling the baggage costs associated with the airfare to encourage separate parcel service use. In one embodiment, based on information from an online booking system, the traveler is allowed to choose from a variety of options addressing modes of baggage handling, and an online routine determines the associated costs for the options chosen, providing travel rates that vary from the typical base airfare.