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UPDATE from BLOOMBERG'S: The busiest travel days of the year are becoming increasingly expensive as the three largest airlines in the U.S. expand their use of surcharges for those days. For example, American Airlines, United Airlines and Delta Air Lines have all added $50 one-way charges on some Feb. 8 flights. The Super Bowl is Feb. 7. "This is becoming kind of a grab" for travelers' cash, said Robert W. Mann, president of R.W. Mann & Co. "Nickel and diming in the form of $5 and $10 bills is really where it's going." Bloomberg (11/17)
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The proliferation of new airline fees is about to drive me up the wall! Why don't they just up the fare by $20-30 and STOP nickel and diming us to death?!? Of course, they all want to tout the lowest prices (although they ALL have the same price structure .. no one airline is the "cheapest") but these ridiculous charges are completely out of control. Ranging from baggage fees to seat selection and headsets, ancillary charges are constantly changing and there is no way for anyone to keep up with today's pricing. This chart shows the increase in baggage fees for each airline:
Yes, the airlines need to make a profit. I want them to be able to pay their pilots and mechanics very well. In fact, I won't even book you on an airline if there is even a whiff of employee grumbling due to low pay/bad working environment. Your life depends on a happy airline work force. But the current proliferation of these fees raises some hard questions, especially what the costs are to the consumer.
For example, American Airlines reports that revenues from sources such as confirmed flight changes, purchased upgrades, food purchased on board, and baggage service charges increased 1.4% to $585 MILLION in the 3rd quarter of 2009 compared to 2008. Ideaworks (an independent research firm) estimates that ancillary revenues and a la carte pricing jumped 345% since 2008. AND .... the airlines are poised to add MORE fees in 2010.
This is causing chaos at the airports. Check in takes longer because you have to get in line for the kiosks and then wait for the agent to call you over. Even if you check in online the day before you STILL have to go through this drill if you have baggage to check. There is no smooth way to do this. Passengers are vying for overhead space on the flights to save on baggage charges. There are fewer flights, all of them are filled to capacity, and all have different "rules" about baggage fees. One possibility to change this is with government intervention (Just what we need ... more government). Maybe we really do need a Congressional regulation of baggage policies.
Delta Airlines' online breakdown of baggage policies runs for pages and is very complicated.
United Airlines has a new option (Premier Baggage) enabling customers to "pay one flat price of $249annually and check two standard bags every time they fly United for the year". What other surprises are the revenue-hungry airlines planning?!? United Airlines has an answer for that too. Customers can opt for more legroom, more comfort, and less waiting starting at $47 per person in addition to the cost of the airline ticket. You can save money by buying a "bundle" of amenities ... but it only saves you money if this is truly a priority for you.
American Airlines urges travelers to check the current baggage policy when purchasing their tickets. Currently the first bag is free but bag #2 is $50.00 if you are flying economy class. But at American (as with many other airlines) , baggage fee policies are increasingly complex including different rules for different destinations.
JetBlue gives customers a break with the first bag FREE, the 2nd bag at $30 and $75 if you need a third bag. However, Jetblue warns of fees for oversized and overweight bags. You will be assessed fees for EACH category that applies to your bags. JetBlue even has different policies based on the type of aircraft you are flying on that itinerary (which can CHANGE at any minute).
USAirways baggage fees are charged a different way. The airline adds a distinct fee between online and airport booking: First extra bag online is $48, but at the airport it is $60 each way. The airline's policy is that you can pre-pay your baggage service online and save. There is also an additional $5 service fee for checked bags at the airport ... per person and each way.
Southwest is one of the few "baggage friendly" airlines and you still get a drink and snack included in the price. They can still afford to "do it the old fashioned way" because they keep their costs low by flying only one type of aircraft, the 737. It saves Southwest money because the pilots and mechanics only have to be schooled in one type of aircraft (saves on education fees) and their maintenance costs are lower because they only have to keep inventory for one type of aircraft. In other words .... KISS (keep it simple stupid!). THREE CHEERS for smart airline management goes to Southwest Airlines.
In the past I have been reluctant to fly Southwest myself because I don't like the open seating. They also have a huge family following so I generally see a much larger percentage of children on the flights. If you are a business traveler, this can wear on you. I got on a flight from RDU to Las Vegas a few years ago (non-stop ... 4 1/2 hours flying time). I was seated next to a man and his 8 year old daughter. As we were taxiing out to the runway for departure the little girl asked, "Daddy, when are we going to be there?". I knew right then that sleeping was not going to be an option. Babies were crying, kids were restless, and I have never seen so many people traipsing back and forth to the bathroom (including my seat mates .... twice... and I had the aisle seat ... ). Even with that experience, I believe I will be flying Southwest more often just because they will not be charging me for every single thing separately. Thank you Southwest Airlines!
The proliferation of new airline fees is about to drive me up the wall! Why don't they just up the fare by $20-30 and STOP nickel and diming us to death?!? Of course, they all want to tout the lowest prices (although they ALL have the same price structure .. no one airline is the "cheapest") but these ridiculous charges are completely out of control. Ranging from baggage fees to seat selection and headsets, ancillary charges are constantly changing and there is no way for anyone to keep up with today's pricing. This chart shows the increase in baggage fees for each airline:
Yes, the airlines need to make a profit. I want them to be able to pay their pilots and mechanics very well. In fact, I won't even book you on an airline if there is even a whiff of employee grumbling due to low pay/bad working environment. Your life depends on a happy airline work force. But the current proliferation of these fees raises some hard questions, especially what the costs are to the consumer.
For example, American Airlines reports that revenues from sources such as confirmed flight changes, purchased upgrades, food purchased on board, and baggage service charges increased 1.4% to $585 MILLION in the 3rd quarter of 2009 compared to 2008. Ideaworks (an independent research firm) estimates that ancillary revenues and a la carte pricing jumped 345% since 2008. AND .... the airlines are poised to add MORE fees in 2010.
This is causing chaos at the airports. Check in takes longer because you have to get in line for the kiosks and then wait for the agent to call you over. Even if you check in online the day before you STILL have to go through this drill if you have baggage to check. There is no smooth way to do this. Passengers are vying for overhead space on the flights to save on baggage charges. There are fewer flights, all of them are filled to capacity, and all have different "rules" about baggage fees. One possibility to change this is with government intervention (Just what we need ... more government). Maybe we really do need a Congressional regulation of baggage policies.
Delta Airlines' online breakdown of baggage policies runs for pages and is very complicated.
United Airlines has a new option (Premier Baggage) enabling customers to "pay one flat price of $249annually and check two standard bags every time they fly United for the year". What other surprises are the revenue-hungry airlines planning?!? United Airlines has an answer for that too. Customers can opt for more legroom, more comfort, and less waiting starting at $47 per person in addition to the cost of the airline ticket. You can save money by buying a "bundle" of amenities ... but it only saves you money if this is truly a priority for you.
American Airlines urges travelers to check the current baggage policy when purchasing their tickets. Currently the first bag is free but bag #2 is $50.00 if you are flying economy class. But at American (as with many other airlines) , baggage fee policies are increasingly complex including different rules for different destinations.
JetBlue gives customers a break with the first bag FREE, the 2nd bag at $30 and $75 if you need a third bag. However, Jetblue warns of fees for oversized and overweight bags. You will be assessed fees for EACH category that applies to your bags. JetBlue even has different policies based on the type of aircraft you are flying on that itinerary (which can CHANGE at any minute).
USAirways baggage fees are charged a different way. The airline adds a distinct fee between online and airport booking: First extra bag online is $48, but at the airport it is $60 each way. The airline's policy is that you can pre-pay your baggage service online and save. There is also an additional $5 service fee for checked bags at the airport ... per person and each way.
Southwest is one of the few "baggage friendly" airlines and you still get a drink and snack included in the price. They can still afford to "do it the old fashioned way" because they keep their costs low by flying only one type of aircraft, the 737. It saves Southwest money because the pilots and mechanics only have to be schooled in one type of aircraft (saves on education fees) and their maintenance costs are lower because they only have to keep inventory for one type of aircraft. In other words .... KISS (keep it simple stupid!). THREE CHEERS for smart airline management goes to Southwest Airlines.
In the past I have been reluctant to fly Southwest myself because I don't like the open seating. They also have a huge family following so I generally see a much larger percentage of children on the flights. If you are a business traveler, this can wear on you. I got on a flight from RDU to Las Vegas a few years ago (non-stop ... 4 1/2 hours flying time). I was seated next to a man and his 8 year old daughter. As we were taxiing out to the runway for departure the little girl asked, "Daddy, when are we going to be there?". I knew right then that sleeping was not going to be an option. Babies were crying, kids were restless, and I have never seen so many people traipsing back and forth to the bathroom (including my seat mates .... twice... and I had the aisle seat ... ). Even with that experience, I believe I will be flying Southwest more often just because they will not be charging me for every single thing separately. Thank you Southwest Airlines!
