Budget Travel - Spirit Airlines: The Ryanair of the U.S. ?

Last week Ryanair’s Michael O’Leary caused headlines, as he is wont to do, by saying he was considering coin slots on airplane bathroom doors. The idea, long bandied about by comedians and travelers (and legions of Middle Seat commenters — Ed.), doesn’t appear to be under serious consideration at Ryanair or anywhere else.

But more fees are coming. This week’s Middle Seat reveals that Spirit Airlines Inc., fast becoming the Ryanair of the U.S., plans to charge a “passenger usage fee” – that is, a fee to buy a ticket. Spirit also charges fees for advance seat assignments and automatically adds travel insurance to a ticket purchase unless the buyer opts out. You might just call the carrier a “fee-line.”

http://blogs.wsj.com/middleseat/2009/03/03/is-spirit-airlines-becoming-the-ryanair-of-the-us/

Please follow this in our Budget Travel forum. Ocn Vw 1K, Moderator, TravelBuzz.

I don't think Spirit has been quite as aggressive as Ryanair, but I do think if they do a fee like Allegiant's it'll really stoke customer anger, and justifiably so.

For one thing, people are used to online bookings being free. They're much cheaper than using humans to handle, and people are being pushed online for that reason not only by airlines, but across a whole host of businesses. They're already saving the business money by doing things that way, and trying suddenly to charge for it like it's a premium service won't go over. Only arrogant monopolies like Ticketmaster tend to do that.

For another, it turns pricing into bait-and-switch when you have MANDATORY (i.e. no way to avoid) airline-imposed fees that would be tacked on. As it stands it's still possible to get the fare advertised in big type with only taxes added on. But any mandatory fees turn the advertising into so much bait-and-switch. The right and honorable thing to do is to raise the fare if more revenue is needed. Every time travel providers try to go a mandatory-fee route (resort fees, fuel surcharges, etc.) it generates a lot of resentment because it makes advertised rates meaningless.

Check out the pricing on Spirit Airlines now if you haven't lately. The "taxes and fees" section will be $9.80 pricier. Click on the breakout and you get something like this:


Passenger Civil Security Fee 5.00
Passenger Facility Fee 9.00
Passenger Usage Fee 9.80
Segment Fee 7.20

By the name and the placement they're trying to make the "Passenger Usage Fee" look like a government-imposed tax, when it's not.

I think we all realize that the fee is a money grab by Spirit, and maybe they can't sell tickets for $8 or $9 or whatever it is this week because too many people aren't paying the baggage/seat fees, their costs are up or any number of other reasons why they need more money to provide the service. Nobody's saying there necessarily should be a free lunch (that's just a straw man, anyway).

But the WAY they're going about this is patently deceptive and frankly it should be made illegal to "bundle" privately imposed fees with taxes. Doing so gives people a misimpression of how much the taxes really are (though the "real" taxes are still substantial), and also makes the fares look more and more like bait and switch. It's thumb-on-the-scales type behavior.

You'll have to mentally add about $10 to any advertised fare from Spirit as long as they have this fee. As with Ticketmaster claiming you have a real alternative in buying at the arena box office, in this case I think you can avoid by buying at the airport ticket counter. Never mind that they'll post a sale fare at midnight and the best days will be sold out online within minutes.

The "honorable" thing for Spirit to do would be to raise the fare by $5 per segment. $8 sales become $13 sales, and so on. Instead they're taking the low road, using a very questionable practice that should be below the standards they should set for themselves. If companies do this sort of thing (like Priceline, or certain Asian LCCs) and get away with it, it tends to lower the standards of the entire industry (the "dark side" of competition).

If they need to charge more money they need to be upfront with it. Most customers will understand. This sort of practice is too questionable. Companies greenlight this kind of thing and then wonder why it sometimes lands in class actions. And then fuss about declines in individual responsibility. Geez.

Check out the pricing on Spirit Airlines now if you haven't lately. The "taxes and fees" section will be $9.80 pricier. Click on the breakout and you get something like this:


Passenger Civil Security Fee 5.00
Passenger Facility Fee 9.00
Passenger Usage Fee 9.80
Segment Fee 7.20

By the name and the placement they're trying to make the "Passenger Usage Fee" look like a government-imposed tax, when it's not.

I think we all realize that the fee is a money grab by Spirit, and maybe they can't sell tickets for $8 or $9 or whatever it is this week because too many people aren't paying the baggage/seat fees, their costs are up or any number of other reasons why they need more money to provide the service. Nobody's saying there necessarily should be a free lunch (that's just a straw man, anyway).

But the WAY they're going about this is patently deceptive and frankly it should be made illegal to "bundle" privately imposed fees with taxes. Doing so gives people a misimpression of how much the taxes really are (though the "real" taxes are still substantial), and also makes the fares look more and more like bait and switch. It's thumb-on-the-scales type behavior.

You'll have to mentally add about $10 to any advertised fare from Spirit as long as they have this fee. As with Ticketmaster claiming you have a real alternative in buying at the arena box office, in this case I think you can avoid by buying at the airport ticket counter. Never mind that they'll post a sale fare at midnight and the best days will be sold out online within minutes.

The "honorable" thing for Spirit to do would be to raise the fare by $5 per segment. $8 sales become $13 sales, and so on. Instead they're taking the low road, using a very questionable practice that should be below the standards they should set for themselves. If companies do this sort of thing (like Priceline, or certain Asian LCCs) and get away with it, it tends to lower the standards of the entire industry (the "dark side" of competition).

If they need to charge more money they need to be upfront with it. Most customers will understand. This sort of practice is too questionable. Companies greenlight this kind of thing and then wonder why it sometimes lands in class actions. And then fuss about declines in individual responsibility. Geez.

In the wake of this practice by Ryanair and others, European governments have now ruled that any charges you cannot avoid paying MUST be included in the headline price. Lobby your congressman

In the wake of this practice by Ryanair and others, European governments have now ruled that any charges you cannot avoid paying MUST be included in the headline price. Lobby your congressman

But you can avoid paying this one. Just go to the ticket counter. :rolleyes:

This one won't go away this time. Also note that it is $4.90 each way, so a one-way trip gets off a bit lighter.

I'm merging with the other Spirit Airlines thread...

BAMAT
Moderator, Budget Travel

I continue to be amazed that folks seem upset that Spirit does these things.

I am also amazed they are still around....

$9 airfares???? And you wonder why they tack on fees? Hmm...

I am a little confused with your comment, from what I can tell you are saying that since they offer $9 tickets (well actually they have an $8 sale on right now) people shouldn't complain.

The problem people have is that Spirit is trying to trick customers into thinking that the free is gov't imposed and it isn't. Unlike other fees you can't avoid it since their sale fares are only available online.

Why not just make all tickets $0, and have a sliding 'pax usage fee' depending on what Spirit wants to collect.

I continue to be amazed that folks seem upset that Spirit does these things.

I am also amazed they are still around....

$9 airfares???? And you wonder why they tack on fees? Hmm...

I am a little confused with your comment, from what I can tell you are saying that since they offer $9 tickets (well actually they have an $8 sale on right now) people shouldn't complain.

The problem people have is that Spirit is trying to trick customers into thinking that the free is gov't imposed and it isn't. Unlike other fees you can't avoid it since their sale fares are only available online.

Why not just make all tickets $0, and have a sliding 'pax usage fee' depending on what Spirit wants to collect.

I am amazed that people think that an airline can afford to sell them $8 airfare and act shocked when that same airline then "nickels and dimes" them to death. Or pulls stunts like this....

I am not willing to book on Spirit. The math doesn't add up. Even with this "outrageous" trick fee your ticket cost what $17.80... hmm...

It's like expecting "service" from them. For what you are paying just pray they could afford to service the 02 system!

It's not that they need more revenue, it's the way they're going about trying to get it. The ends don't justify the means.

I think many people here were expecting them to do a "Booking fee" like the one Allegiant has. Or perhaps a fuel surcharge. But inventing a fee and naming it and placing it to try to make it look like a tax instead really lowers the bar on underhandedness.

I have to agree with RustyC on this one, Allegiant calls it a convenience fee so it is more clear where the fee is going.

I have said it in other threads, but I would much rather see an airport check in fee, with free online check in. This actually saves money for the airline.

It's not that they need more revenue, it's the way they're going about trying to get it. The ends don't justify the means.

I think many people here were expecting them to do a "Booking fee" like the one Allegiant has. Or perhaps a fuel surcharge. But inventing a fee and naming it and placing it to try to make it look like a tax instead really lowers the bar on underhandedness.

It's not that they need more revenue, it's the way they're going about trying to get it. The ends don't justify the means.

I think many people here were expecting them to do a "Booking fee" like the one Allegiant has. Or perhaps a fuel surcharge. But inventing a fee and naming it and placing it to try to make it look like a tax instead really lowers the bar on underhandedness.

So would you still buy when the bargins go from $8 to $18? Or is the only reason you were even over there noticing the fee is the "under $10" hook?

Enlightening thread! Hadn't heard about this new fee until now.

We recently booked DTW > LAX on Spirit. I didn't even realize -- which is exactly the reason why Spirit has implemented the fee in this manner -- the 'Passenger Usage Fee' was an extra fee and not a government fee. Still got a good rate overall ($129 PP RT, all in), but pretty disappointing to see such a shady way of gaining extra revenue.

That's not the point.

The issue here is simple, Spirit wants to trick customers into thinking the $4.90 fee is a tax. In reality it is just revenue for the airline. I think people who have a lot less problem if all fares were rased by $4.90 or they had an 'online booking fee' instead of a 'passenger usage fee' which sounds very similar to a 'passenger facility fee' which is a real fee.

So would you still buy when the bargins go from $8 to $18? Or is the only reason you were even over there noticing the fee is the "under $10" hook?