Posted by Marshall Jackson |
American Airlines announced this morning that they will be adding a “premium economy” section to their aircraft. These seats will be known as Main Cabin Extra and will be available for sale for a fee ranging from $8 to $108 dollars depending on the length of the flight. These seats will be available to Platinum and Executive Platinum members of the AAdvantage program and those who purchase a full-fare economy ticket for free. Additionally, Gold members will receive complimentary access through the end of December 2013. I assume they’ll have to pay the standard upcharge after that point.
In addition to an extra 4 to 6 inches of legroom, Main Cabin Extra customers will receive priority boarding. These seats will be available on American’s new B777-300 aircraft this spring, and will be introduced to the rest of the fleet within 18 months. You can read American’s press release on the new product here. Personally, I think this is a positive development for American, and one that I expect had to happen with the new United and now Delta offering similar products. Will US Airways do something like this? Hmmm.
It’s events like this that make me think about swearing off the “legacy” airlines and flying Southwest. I just dropped $300 dollars to change a flight for Mrs MJ on Travel and I from 6am on a Monday, to 6am on the Friday before. At least there was only a small change in the fare. I buy a little bit of the argument that my holding the inventory that I’m now not going to use has cost the airline the opportunity to sell the seats I previously occupied. Seriously, I get it. But it’s not like the flight I’m changing is tomorrow, it’s almost 50 days from now. Somehow, a graduated fee system which starts at lets say $25 dollars and rises up to $150 dollars as you move closer to the flight seems more fair. Or perhaps $25 dollars up to 30 days prior to departure, and $150 dollars thereafter. Anything but the fleecing that I just took. In truth, the $150 dollar change fee per person is almost the same price as the fare we originally paid. Somehow, that just doesn’t seem cool. Yes, I sometimes think about swearing this game off and just flying Southwest. Then I remember flying premium class internationally for miles, whether in the past, or planned for next year, and come to my senses. But still…..
Seriously, what’s up with all the bobbleheads in the media pontificating about how the airlines made $3 point something billion on “fees” last year? If I read one more quote about how someone feels “nickel and dimed” by the airlines or arrived at the airport and was surprised by the fees they charge I might scream. Unless you’ve been living under a rock for the last 3 years, it shouldn’t be a surprise that most airlines are charging for checking luggage nowadays. Admittedly, I’ve always thought JetBlue’s 1 bag free policy was the right one for the industry and for Customers. However, I don’t think any of the airlines that charge for the first bag have been hiding the fact that they do so. And so what if the airlines received a $3 billion or so plus up on the revenue line from “fees.” Here’s a tip. If you don’t want to pay a checked bag fee, buy a reasonable carry on bag and leave the kitchen sink at home.
That said, I think airlines could do a better job of public relations on this. Stop saying things like “we must institute these fees due to high oil prices” or whatever. Be honest. It’s not just high oil prices. Airlines haven’t made money since the Wright Brothers and this is just one experiment to try and make the bleeding stop. The airlines should also proactively refund the checked bag fee of any passenger whose bags are misdirected and do not arrive on the same flight they travel on. Taking the money and then not giving it back when the airlines don’t live up to their end of the bargain only reinforces the perception that this is just a confiscatory money grab and not a reasonable unbundling of services where you only pay for the services you want.
Anyways…..now you know where I stand on bag fees. Off soap box.
This is old news by now, but I did not want to let the opportunity to blog about it pass me by. United Mileage Plus has announced a return of certain award fees which aligns the program with Continental OnePass effective June 15th. United is reinstating a fee for booking award travel within 21 days of departure. However, the fee is being reintroduced with a tiered structure starting at $75 dollars for general members and then dropping by $25 dollars for each level of Mileage Plus elite status. The fee is $50 dollars for Premiers, $25 dollars for Premier Executives, and is waived for 1K and Global Services customers. While this particular fee is among the most annoying to me, I suppose it could have been worse. Although American AAdvantage notably now waives the close-in award fee for all elite customers.
Some fees are actually going down. For example, the fee for changing your origin or destination on award tickets will be dropping immediately to $75 dollars for all Mileage Plus members below 1K and Global Services status who are exempt. For tickets issued on or after June 15, 2011, the fee evolves into a tiered pricing structure with General Members continuing to pay $75 dollars while Premiers and Premier executives will be out $50 and $75 dollars respectively. There are other changes which United details here.
All in all, these changes aren’t that bad, and for elite members, they’re mostly beneficial. That said, I am not a fan of paying any extra surcharge for booking your trip less than 21 days before departure. That fee is, and always has been, a pure money grab and I do not care for it. Frankly, I don’t even think non-elites should be charged this fee. Let’s face it, if you’re down to booking a trip less than 3 weeks in advance, you’re more likely to have to use “double miles” awards anyway. Isn’t that indignity enough?
Why is United doing this now? I think they really are just aligning with Continental. But with oil prices headed north, I think the fee structure that they thought might be slightly more revenue positive is the one they went with. I’m betting a lot more non-elites than we think actually use their miles for simpleton trips, and wind up booking closer to departure than they might like, especially with fares are high as they are in many markets. Just a thought…that I can’t back up with hard data. In any event, I can’t help but think that some other airlines may be looking at tweaking the fee structure on their award programs to boost revenue. Personally, I hope American’s fee waiver for elites on close-in bookings is the model that wins the day. Will I get my wish? Doubt it. Though it is gratifying to see that all award fees for United’s top elite 1K and Global Services customers continue to be waived. Perhaps I need a 1K card?
A great question, to be sure. I’ve not been one who complains about “baggage fees” and other forms of unbundling, and I remain a person who is passionately indifferent. But with US Airways recent announcement that it is raising fees for bags that weigh between 50 and 70 pounds from $50 to $90 dollars and for a 3rd checked bag from $100 to $125 dollars! My personal favorite, the fee for checking in a bag that weighs 71 pounds (the weight that used to be the first to be considered overweight) is now a whopping $175 dollars! That’s more than many roundtrip airfares US Airways charges, I’m certain. I’m not positive, but I think if that 71 pound bag happens to be your 3rd bag, you pay $175 + $125!! Can a reader confirm that?
Let’s be honest. I don’t have the first clue what it costs an airline to ship a bag from point A to point B. The one airline I worked for certainly knows that number to the penny. Whether I know it or not, I’d bet money that number isn’t anywhere north of $100 dollars. If US Airways’ new fees spread to the other airlines, you can rest assured that I will be convinced that baggage fees have begun to separate from reality.
The post title says it all. Apparently some enterprising folks have seen fit to take airlines to court over the checked luggage charges. I’ll let you read the details in the article I wandered across. When you do that, come back here, and let’s talk about this for a few minutes.
OK, welcome back. I’ve often said that I do not have a problem with airlines charging extra for those things that can legitimately be considered an enhancement to the travel experience. Early boarding, better coach seats, and certainly edible food are some of those enhancements. On the subject of checked baggage, I’m a bit less clear. While I’ve long felt that buying an airplane ticket did not equate to renting a moving van, I tend to think that one piece of checked baggage should be considered an integral part of the travel experience. JetBlue, to their credit, agrees with me. Southwest does one better and goes with 2 pieces of checked baggage as part of the fare.
That said, I feel that an airline that is going to charge you an extra fee to transport your checked baggage is at least morally obligated to adjust that charge, or at least offer you something in return if they do not deliver that baggage with you. Alaska Airlines seems to be the only airline that charges for the first checked bag which actually “gets” the idea of doing the right thing when they fail to live up to their end of the baggage bargain. Check out their “Baggage Service Guarantee.” While I’m sure the other airlines come through with a refund of checked baggage charges when they fail to deliver on a case by case basis, Alaska appears to be the only airline to really put its money where it’s “what can we charge for next” brain is and attempt to do the right thing by its customers.
Things like holding on to baggage charges when they don’t deliver your bag with you is just one reason why airlines are under the gun from their customers, and more importantly, Congress. If these companies don’t get it together and learn to do the right thing by their customers, they’ll have no one to blame but themselves when they rediscover the watchful eye of re-regulation. And no, I don’t think re-regulation is a good thing for anyone.
As I posted yesterday, American Airlines has added a new option to its “Your Choice” line of travel options. With the introduction of Express Seats, travelers who do not fly enough to earn elite status can access better seats at the front of the cabin for a price ranging from $19 to $39 dollars.
Bottom line, I’m fine with it. I don’t have to pay the fee since I hold elite status on American. But I can tell you, if I didn’t have that status, and found myself flying American, I’d certainly consider springing for this depending on the situation. Not only do you get a better seat, but you also receive Group 1 boarding, and that may be one of the best things about elite status. Assuring space for my carry on bag is a big deal, and it’s one I would at least consider paying a few bucks for (along with a better seat) from time to time.
All that said, it’s hard not to wonder when the airlines are going to run out of things to charge for. I do believe that there is a limit to what most of the traveling public will tolerate. Apparently, we haven’t arrived there yet. One thing for sure, when we get there, the airlines won’t figure it out until well after the rest of us.
This week I’m enjoying a fabulous European vacation, including a cruise aboard Celebrity Equinox. To fill in the blanks between vacation posts, I’m reposting some of the most widely read content from MJ on Travel. Today, it’s time to take another look at the airlines’ appetite for “ancillary revenue.”
I’m rarely in unanimous agreement with Chris Elliott’s take on the airlines. That said, I think his piece on the airlines’ hunt for ancillary revenue is close to spot on. Except at the end where the word “re-regulation” appears, which is a bandwagon I’m never gonna board.
I don’t mind paying extra for something that truly is a value-added service. Like Elliott, I think that many of the new buy on board food options and internet meet this threshold. I’m also a fan of Southwest’s Early Bird Checkin product. Heck, I don’t even mind the pillow/blanket packages, and certainly not the confirmed flight change fee American recently rolled out.
On the other hand, I know you’ve heard me preach on the sin of paying a fee for the first checked bag. I’m sorry, but one bag is an inherent part of travel and I continue to believe that JetBlue’s policy of including one checked bag as part of the fare is the right one for not just JetBlue, but the entire airline industry. The other airlines, except Southwest (2 bags for free), obviously do not agree with my opinion. And don’t even get me started on charging a fee to purchase a ticket from a person, which I maintain is the silliest idea in the history of mankind. Even worse than the first checked bag fee.
In summary, I remain unopposed to the concept of unbundling in principal as long as the service that is now being “charged for” can legitimately be considered a “plus up” to the travel experience. Unfortunately, far too many airlines have fallen all over themselves in charging for any and everything they can think of in an attempt to return to profitability. And for those airlines, I have a question: How’s that workin’ out for ya’?
I’m actually sitting on an airplane now blogging via GoGo. I’m traveling with 2 other colleagues whom I’ll spend the week with in Seattle on a project. I’ll be there for a week, but both colleagues will actually be traveling on to Los Angeles for another week of work while I return home.
One had the misfortune to pack 57 pounds of clothing for her 2 week business trip, and was dinged by Delta for a whopping $90 dollars for the extra 7 pounds. Frankly, I was shocked the fee was that high. $50 dollars seems more the norm, at least that’s what I paid American back in February when returning from a cruise.
Our conversation inspired me to check the fees other airlines are currently charging for overweight baggage. I started with American, and their fee for 51 to 70 pounds remains a far more reasonable $50 dollars, and $100 dollars is the going rate for bags in the 71 to 100 pound category. For reference, Delta’s fee for bags between 71 and 100 pounds is a whopping $175 dollars! Then I looked at United. $100 dollars for bags between 51 and 70 pounds if you’re not an elite customer. (Note: I like that UA elites get a 70 pound per bag allowance.) Continental charges $50 dollars for a bag weighing 51 to 70 pounds. Continental does not accept baggage weighing more than 70 pounds. In contrast to these airlines and in keeping with its history of simple and easy to understand policies, Southwest charges $50 dollars per piece for baggage weighing between 51 and 100 pounds.
The meaning of all this? Learn to pack more efficiently. I can handle a 5 day business trip with nothing but my 21″ Samsonite roller. It takes a little practice, but its well worth your time and money. And remember, it’s not a sin to do a little laundry on the road from time to time. It’s certainly cheaper to do that than pay $100 bucks for your extra 7 pounds of clothes.
I’m rarely in unanimous agreement with Chris Elliott’s take on the airlines. That said, I think his piece on the airlines’ hunt for ancillary revenue is close to spot on. Except at the end where the word “re-regulation” appears, which is a bandwagon I’m never gonna board.
I don’t mind paying extra for something that truly is a value-added service. Like Elliott, I think that many of the new buy on board food options and internet meet this threshold. I’m also a fan of Southwest’s Early Bird Checkin product. Heck, I don’t even mind the pillow/blanket packages, and certainly not the confirmed flight change fee American recently rolled out.
On the other hand, I know you’ve heard me preach on the sin of paying a fee for the first checked bag. I’m sorry, but one bag is an inherent part of travel and I continue to believe that JetBlue’s policy of including one checked bag as part of the fare is the right one for not just JetBlue, but the entire airline industry. The other airlines, except Southwest (2 bags for free), obviously do not agree with my opinion. And don’t even get me started on charging a fee to purchase a ticket from a person, which I maintain is the silliest idea in the history of mankind. Even worse than the first checked bag fee.
In summary, I remain unopposed to the concept of unbundling in principal as long as the service that is now being “charged for” can legitimately be considered a “plus up” to the travel experience. Unfortunately, far too many airlines have fallen all over themselves in charging for any and everything they can think of in an attempt to return to profitability. And for those airlines, I have a question: How’s that workin’ out for ya’?
Sorry for being late to post this, but I’ve been inundated with work from that pesky day job. Not unexpectedly, American Airlines has announced that it will begin charging $25 dollars for the first checked bag starting February 1. Many thanks to reader Jim for sending this link. I apologize for being slow to post it.