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Wednesday, April 4, 2007

Cheer, Cheer, for New Baggage Fees

We check baggage, yes we do! We check baggage, how ‘bout you? Actually, we rarely check bags, but when we do it costs nothing. For now.

You can always tell what’s on the horizon in the airline fee world by taking a peek at what ATPCO is developing. ATPCO developed “fuel surcharge” functionality and all airlines tacked it on. They’re working on fees to simplify ticketing fees (e.g. call center service charge). But hear us now and believe us later – the next step will be a proliferation of baggage fees as
ATPCO rolls out filing products that will make collection much easier for carriers.

Many carriers (e.g.
BA) have tinkered with excess and additional bag charges. However, Spirit Airlines dialed it up a notch in the U.S., accepting no checked bag unless you pay a fee for that service. The interesting thing is that we haven’t read much negative press about the Spirit policy. People think it’s cute when an upstart leisure carrier does this. And we cringe, because you can bet $25 that in any conversation about the topic you will hear some variation of the phrase “Ha ha ha. What’s next, a pay toilet?” Bank on it.

However, will passengers still laugh it off when the majors implement fees from bag #1?

As a rep from a major international carrier asked at CASMA, should a traveler on a quick business turn, carrying only a briefcase, pay the same fare as a family checking many bags for an extended vacation? Arguably, the family gets more value. Charge them for that service!

This will be an interesting game to watch. Will the fees be positioned as a charge to the family, or a discount to the road warrior? Who will lead, who will match? We don’t envy the players - especially if we have to wait in security lines longer as families fumble with their array of 3 oz. bottles.

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