Has the airline industry won the luggage fee war?
Consider the following facts:
• Airlines earned $566 million from checked baggage fees in the first quarter, according to the Bureau of Transportation Statistics. That’s more than four times as much as it collected for the same period a year before.
• Air carriers have publicly declared that passengers accept the fees. Only a few brave travel pundits are challenging those claims, but it appears no one is listening to them.
• Far from backing down, airlines are now raising the baggage fees. The latest is American Airlines, which famously introduced the idea of a $15 fee for the first checked bag. Uh, make that $20.
But a key to this devastatingly successful PR campaign is the mass acceptance of certain statements that aren’t entirely accurate. The airline industry as a whole wants us to embrace the following myths about checked luggage fees:
1. “We need to offset high energy prices.”
That may have swayed some passengers when oil was at $125 a barrel, a price that American Airlines’ chief executive Gerard Arpey complained the industry was “not built to withstand.” But oil is trading at around $70 a barrel today. Not exactly a bargain, but the airline industry is still flying, thanks very much.
2. “You’re only paying for what you use.”
Another flawed argument used by airlines and airline apologists is that the first-bag fee allows travelers to only pay for what they use. Oh really? There are lots of amenities that are considered a part of the airline ticket that don’t get used by every passenger, including a waiting area at the gate, beverage service, restrooms and those compelling in-flight magazines. By that logic, we should begin to “unbundle” those too.
3. “If we added a free checked bag, we’d have to raise fares by $15.”
That’s highly unlikely. Remember, none of the airlines lowered their fares by $15 across the board when they added the first checked-bag fee. Fact is, airlines don’t control their fares — we do. Fluctuations of only a few dollars are enough to drive us away — or send us to our computers to book. And airlines know it. If they allowed us to check our first bag at no extra cost, there would be no fare increase.
4. “The government says it’s OK.”
If the government were doing its job, that shouldn’t be true. The Transportation Department has the authority to tell the airlines to stop this a la carte fee nonsense. But because of a pro-business attitude among rank-and-file regulators at the DOT, it isn’t going to budge on luggage fees. Even if it means misrepresenting a few facts along the way.
5. “You don’t want to subsidize someone else’s checked bags.”
That’s an argument I hear from a lot of business travelers who travel with just one carry-on bag: If airlines allowed a “free” checked bag, then those of us who carry only one bag would effectively subsidize the airfares of those who check a bag. That’s patently absurd, considering myth #3, and considering the fact that business travelers already pay fares that are an average of four times higher than leisure travelers. Bag or no bag, they’re subsidizing lower leisure fares. Maybe they should be protesting that instead.
(Photo: conallob/Flickr Creative Commons)
{ 1 trackback }
{ 8 comments… read them below or add one }
Damn those airlines for wanting to generate a REVENUE!
I said it before and I’ll say it again – I wouldn’t mind paying the checked baggage fee if there were service guarantees with it. Right now airlines can take their sweet time getting my bag to the luggage carousel, fee or no fee. It might be worth the $15 if they promised I would be on my way from the airport with my bag within 30 minutes of arrival at the gate. If the bag is late then it’s free – (and the fee should apply to everyone – no exceptions for frequent fliers with the service guarantee. If there are exceptions then there the incentive to get the bag on time is dimished.
I agree with Robert, Fed Ex refunds your money if it doesnt get your bag there on time. If the airlines can’t get your bag within 30 minutes you should at least get a voucher towards the next time.
I agree with Robert, Fed Ex refunds your money if it doesnt get your bag there on time. If the airlines can’t get your bag within 30 minutes you should at least get a voucher towards the next time.
P.S.: Wanted to add great post!
On August 5th, 2009 at 11:41 am Robert said
It might be worth the $15 if they promised I would be on my way from the airport with my bag within 30 minutes of arrival at the gate.
========================================================
wishful thinking………..even DOMINO’S PIZZA couldnt keep that promise:
Everyone has heard of Domino’s 30 minutes or it’s free deal, right? Well what if I told you that the guarantee hasn’t been in effect in over fifteen years? That’s right; if it takes 45 minutes to deliver your pizza, you’re still expected to pay for it.
First off, the “You Got 30 Minutes” commercials that Domino’s has been airing for the past few years are extremely misleading. Nowhere in the commercial does it say “get your pizza delivered in 30 minutes or it’s free.” If you don’t believe me, watch it again here http://uk.youtube.com/watch?v=zgz5jTfpYUc (Pause it at 28 seconds and check out the fine print). In fact, every pizza box from Domino’s comes with a disclaimer stating “Because safety is a priority 30 minutes is just an estimate, not a guarantee. You may get more.”
So where did the confusion come in? Some people do remember the days when there actually was a “30 minutes or it’s free” guarantee. What happened to it? Why did they take it away? As you can imagine, there are some instances where it’s neither safe nor feasible to make it to a delivery destination in the amount of time the driver is given.
When these fees first came out, my main complaint was (and continues to be) that they were unfair in light ot the newest TSA requirements that mean many travelers who might otherwise not have to check a bag now have to in order to comply with the carry-on restrictions.
If I were allowed to bring my shampoo and gel shoe inserts onto the plane, I wouldn’t complain about it so much, but I do believe that luggage fees would be more equitable if, like those old meal guidelines, they comported to the length of travel or area of travel. For example, if the outbound and return are say three weeks apart, luggage charges would be waived. Anyone traveling overnight needing three bags should pay. And, I’m no pack animal, but it’s kinda tough to pack for a week’s worth of skiing, or some other cold weather adventure, and fit all that in a carry-on.
I still say that checked baggage should be free and carry-on more than required for in flight should be charged. Think how much easier getting in and off would be. I admi the baggage handlers would hate it.
These fees are getting more outrageous daily! You used to be able to fly and have “free luggage”, now they charge you to destroy or lose your luggage. If they are going to charge these outrageous fees, then take care of our luggage! I’m tired of spending money on luggage only for it to be ripped, torn or destroyed by the airlines! Now Spirit wants to charge you for a carry-on! This is ridiculous, as you are carrying it and they have nothing to do with handling it. They want to charge you a fee for everything. Back in the day you had to contact them or go to the airport to purchase your tickets…now you research it, book it, pay for it and print your own tickets! Yet if you need to change something or cancel due to something beyond your control, they want to charge any where from $75.00-$150.00 to change a ticket they didn’t book or handle. People need to speak up and voice their complaints or this will never be resolved.