Tiger Airways announced Monday that passengers without check-in baggage would incur $10 charge starting July 1 but the airline reminded travellers that such fees could be dodged if they opt to check-in online prior to their flight.

Tiger managing director Crawford Rix said that the scheme would provide travellers, who use online check-in, with the airline's lowest fares as he reminded that this is all "about offering the seat for the absolute lowest fare and then providing customers with the option to choose whatever optional extras they wish to pay for."

Mr Rix said that the new payment system would unbundle the extra fees and bring about transparency on all charges which should give more opportunities for travellers to adjust their travel needs in accordance to their budgets.

Airlines, including Tiger, have been introducing 'ancillary fees' in their attempts to slash costs and passengers are being charged accordingly for taking in such options as carrying more luggage or sports equipments, enjoying seat selections, paying by credit card, travelling with infants and purchasing food in flight.

The Centre for Asia Pacific Aviation (CAPA) said that this year alone, such ancillary revenues being imposed worldwide could reach a total of $US58 billion or $A66.3 billion, which is about 12 percent of total airline revenues.

CAPA executive chairman Peter Harbison said that Australian travellers should quickly adjust to the new check-in arrangements despite some issues that arose since Tiger started operating in the country, predicting that "people are pretty much ready to accept this, and they will change their behaviour to accommodate it."

Mr Rix said that compared to other airlines in Australia, Tiger Airways is adopting a different approach to further cut airfares in the future, adding that "our model is based on some of the most successful and profitable low cost carriers in the world, including Ryanair."

Ryanair shut down its check-in counter in October 2009 which forced passengers to resort to online check in and simply drop their luggage to an appointed drop point, at the same time introducing an online check-in fee of five euro or $A7.10.

On the other hand, Tiger Airways customers who have paid for check-in luggage are not charged and could even save if they opt to pay the $10 fee upon booking since they would have to pay $15 should they elect to make payment on the day of their flight.

The airline gave reminder though that fee for checked baggage would increase by July 1, as a luggage weighing 15 kilograms would fetch a fee of $20 from its original $15 while a 25-kilogram baggage would cost $50, coming from $45.