Baggage fees send airline revenue soaring

[sabra]

Source: Chicago Trib

3rd quarter sees 23% jump in luggage charges, as other ancillary income also rises

The sky appears to be the limit when it comes to the revenue airlines reap from passenger fees.

The 20 largest U.S. carriers collected $906.4 million in baggage-related charges during the third quarter, a 23 percent jump from 2009 results, according to data released Monday by the Bureau of Transportation Statistics.

New baggage fees for international routes, a rebound in air travel and passenger frustration over limited overhead space in airplane cabins all contributed to the skyrocketing fee income, observers said.

Some travelers are getting tired of dragging bags onto planes, while carriers are cracking down and forcing travelers to check jumbo-size carry-on bags before they leave airport lobbies, said Tom Parsons, founder and chief executive of BestFares.com.

"It could be that more people elected not to fight for overhead space, too," Parsons said.

Baggage fees are the most famous, or infamous to some, of the many new charges that reflect a fundamental shift in the way airlines interact with customers. Rather than offering a single, all-inclusive rate for food and other onboard offerings that often bordered on the mediocre, airlines are offering a menu of new services — for a charge.

Read more: http://www.chicagotribune.com/business/ct-biz-1214-bags-20101213,0,5697900.story

[Gormy Cuss]

1. How nice for them.

It's a good thing passengers love being nickeled and dimed.
:sarcasm:

[Historic NY]

12. Paying more & getting less.......even the peanuts are smaller.

[BlueCollar]

15. Just out of curiosity

what industry do you work in?

[KansDem]

2. "Some travelers are getting tired of dragging bags onto planes,.."

No they're not. Having flown twice since Thanksgiving, I can safely say travelers are not tired of dragging their steam-trunk sized "carry ons" onto the plane. And since I often board last, there have been times when there is no more overhead storage for my real carry-on.

Either pay the fee or leave your steamer trunks at home! :grr: Or, the airlines can actually start enforcing their maximum-dimensions for carry-on items...:grr::grr:

[liberal N proud]

3. I was on a recent flight where they were charging for food

The flight attendant was going down the isle asking if anyone would buy her food, I was in a smart ass mood after paying $25 to check luggage because I was given a bottle of wine and can't take it through security.

I snorted that we didn't want it when it was free, why would we pay for it?

But then when we get back to the office, one my employees paid lunch on the plane.

[Roy Rolling]

4. Business Model

Airlines are taking advice from banks on how to pad profits---fees, fees, fees. I'm surprised they don't just put a sign on each plane saying "ass, gas, or grass".

[KansDem]

9. "ass, gas, or grass"

I have that bumpersticker! Bought it during the 1970s, although it reads "Gas, grass, or ass -- nobody rides free!"

:rofl:

Thanks for the memory! :hi:

[Ruperto31]

5. Solution: everyone should fly first class. No, wait....

That wouldn't work, would it?

[Freddie Stubbs]

8. Just fly Southwest Airlines

[tomm2thumbs]

11. 2nd that - they are truly one of the few alternatives to corporate overpriced airlines

luckily they have continued to work their magic, but without them I fear this nation would be a monopoly of price fixing and gouging of travel by air

[BadgerKid]

6. It works so well for the insurance industry. n/t

[thelordofhell]

7. If airlines really did the insurance model

They would take all the fees upfront, take your luggage, and then at the last minute, not let you on the plane.

[MicaelS]

10. The current situation is the fault of the flying public....

Americans have repeatedly proven by their actions that they want rock-bottom ticket prices. If they want quality air travel, and the good service that goes with it, they have to pay for it. They aren't willing to pay for quality, so they get flying cattle cars instead.

[Gormy Cuss]

14. Absolutely, it's the fault of the flying public.

If passengers had refused to pay the baggage fee it wouldn't have become the norm.

The canard that the airlines were forced to add fees because consumers demanded rock bottom prices is so tired. I flew on a Y fare recently and the airline still expected more money to check a bag.

[FarCenter]

13. Why should people who travel without baggage subsidize those that do?

Since providing baggage checking and handling services costs the airlines money, they should recover their costs from the passengers that check baggage.