Another new fee -- not...
Oct 6, 2009, 7:54 am
#1
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Another new fee -- not...
...at Southwest.
I'm amazed that I beat FCFree on this one:
http://travel.aol.com/travel-ideas/a...vdynlprim0628#
http://www.chron.com/disp/story.mpl/...s/6643901.html
Continental is in the headline, but it's five airlines that will be charging a new fee for traveling certain peak days: AA, CO, DL/NW, UA and US. (UA is in in one article, not in the other.) Sheesh.
This just seems like an obsession with deception. They hold advertised fares down through the holidays, but add the automatic fee. The article says CO's is $10. But that's just the foot in the door.
When I read that Mr. Kelly says Southwest is under pressure to go the fee route, it means to me that Southwest is under pressure to deceive, and I hope it will continue to resist. Every one of these draws the contrast more sharply.
BTW, when four (five or six) companies announce something like this at the same time, there is something else going on, too, but we've become so numb to it that it will probably pass without much attention.
[The first one is an ugly url. I tested it, and hope it works for others.]
I'm amazed that I beat FCFree on this one:
http://travel.aol.com/travel-ideas/a...vdynlprim0628#
http://www.chron.com/disp/story.mpl/...s/6643901.html
Continental is in the headline, but it's five airlines that will be charging a new fee for traveling certain peak days: AA, CO, DL/NW, UA and US. (UA is in in one article, not in the other.) Sheesh.
This just seems like an obsession with deception. They hold advertised fares down through the holidays, but add the automatic fee. The article says CO's is $10. But that's just the foot in the door.
When I read that Mr. Kelly says Southwest is under pressure to go the fee route, it means to me that Southwest is under pressure to deceive, and I hope it will continue to resist. Every one of these draws the contrast more sharply.
BTW, when four (five or six) companies announce something like this at the same time, there is something else going on, too, but we've become so numb to it that it will probably pass without much attention.
[The first one is an ugly url. I tested it, and hope it works for others.]
Last edited by Firewind; Oct 6, 2009 at 9:00 am Reason: Added link to source article.
Oct 10, 2009, 6:18 am
#2
Join Date: Nov 2008
Programs: eleVAte, Rapid Rewards
Posts: 31
This isn't really a "fee"...it's rolled into the price, not a separate line item or anything like that.
The simple basics of Supply/demand account for why holiday travel costs more vs. middle of a normal week. I suspect that there are two things going on here:
1) This is basically price fixing, but not illegal since it's so overt. What I mean is.. airlines constantly change available fares, and it's not always possible for airline X to see that airline Y suddenly raised all their fares by $10 just by combing through. By yelling to the media about it, it's a "wink wink, nudge nudge" to the other airlines that they might as well raise their fares $10 as well - especially since LF's during the holidays are high, and pax demand is inelastic-ish. This also shows investors that management is doing something once in awhile.
2) Calling it a "fee" could, in some cases, allow the airline to charge an additional $10 to businesses who have fixed price contracts for a given route.
The simple basics of Supply/demand account for why holiday travel costs more vs. middle of a normal week. I suspect that there are two things going on here:
1) This is basically price fixing, but not illegal since it's so overt. What I mean is.. airlines constantly change available fares, and it's not always possible for airline X to see that airline Y suddenly raised all their fares by $10 just by combing through. By yelling to the media about it, it's a "wink wink, nudge nudge" to the other airlines that they might as well raise their fares $10 as well - especially since LF's during the holidays are high, and pax demand is inelastic-ish. This also shows investors that management is doing something once in awhile.
2) Calling it a "fee" could, in some cases, allow the airline to charge an additional $10 to businesses who have fixed price contracts for a given route.