airline surcharges to disapear?

Glimpsed over it really quick, but the first thing I can think of is correlation is not causation.
 
Glimpsed over it really quick, but the first thing I can think of is correlation is not causation.

You may be right, but my instincts tell me otherwise.

Travellers got sick of the nickle-and-diming fees right quick when the major airlines started tacking them on, and I've seen a lot of comments on the boards I frequent about switching to SWA or JetBlue to avoid them. I've also seen lots of people changing their flying habits by going with carry-on only, bringing their own music source ansd pillow, bringing empty water bottles through security and filling them before boarding, etc, to avoid some of the fees.

Personally, I agree with the article - I think the major carriers have shot themselves in the foot by adding these "hidden" fees, and SWA has boosted their business substantially by eschewing them. How valuable is the boost that SWA has gotten fromtheir "Bags fly free" ad campaign? I bet they've made more from increased ridership than they would havemade from second bag or even first bag fees.
 
The main reason I disagree is that most business travelers use the main carriers, few use the likes of JB or SW. Both JB and SW are mostly personal/leisure travel carriers. Business travel has dropped dramatically, more so then personal/leisure travel, which helps support why the correlation is not causation thought holds true.
 

I don't think SW would generate much revenue with a charge for a second checked bag. Passengers would just check one bag. Charge enough and passengers will check one bag for two passengers, or go with carry on only.

Passengers check fewer bags and airlines can carry more cargo.
 
I don't think you can connect the drop in revenue to the fees. Business travel is way down. I had around 40,000 miles last year on business, around 60,000 the year before. Not counting my trip overseas, I have under 10,000 this year. I have not had a business trip since mid-May. We are doing everything online rather than in person.
 
Checked bag fees are not stopping people from checking bags. Those charging fees for these are raking in lots of money with them. Cushioning the blow. While it may have driven some people to SWA, it didn't send them enough to help them turn a third quarter profit.

SWA doesn't serve all markets, so not everyone can switch to them. If eveyone who could was switching to them just because of the free checked bags, you would think they would have made money.

I don't have a problem with a la carte fees. Though the holiday surcharge is silly. Just tack it in to the price of the ticket. The surcharge is there because demand is up, isn't that why prices are up at certain times?
 











Receive up to $1,000 in Onboard Credit and a Gift Basket!
That’s right — when you book your Disney Cruise with Dreams Unlimited Travel, you’ll receive incredible shipboard credits to spend during your vacation!
CLICK HERE


New Posts







DIS Facebook DIS youtube DIS Instagram DIS Pinterest DIS Tiktok DIS Twitter DIS Bluesky

Back
Top Bottom