Originally Posted by
pbarnette
It wouldn't have helped. I mean, who is going to choose to fly CO because of one free checked bag? The casual flyer may not really be aware or differentiate, and the FF or business traveler will either be elite or charging to a company or doesn't check bags or all three. I fail to see a major market for holding the line on checked bag fees.
And it is more than just attracting customers. Loads remain high and capacity cuts will likely keep things that way for a while. Increasing traffic is of minimal value, particularly given the high marginal costs today.
What CO needs to do is drive revenue. To do that, you would have to get people to pay more for their tickets because you don't charge for the bags. But what rational person would do that? If CO increases their fares to match a competitor's fare + surcharge, then the consumer should be indifferent between the two options. If CO increases by something less than that, then they are leaving money on the table. I know that some people here proudly claim that they would prefer to see it all bundled in, but who is really going to pay more (or even the same) to save themselves 30 seconds of arithmetic?
And bundling actually increases the expected cost of your ticket. With the surcharge system, your cost of travel is, say, $300 + {[(probability of checking a bag) * $30] * time value of money} Bundling the cost means your cost is $330. Therefore, the expected bundled cost is higher any time your probability of checking a bag is = 1, and where there is no time value of money.
By your equation then, how much does still having pillows, blankets and meals bring people to CO, which they do advertise, including running expensive TV ads? How many more would’ve come in had CO started a newer campaign that included these plus no 1st checked bag fee? I don’t know the answer to the 1st, but I’m curious to find out, and we’ll never know the answer to the 2nd. The first group has to cost CO money per ticket sold in provision, cleaning, etc. I guess you are arguing that not charging a 1st bag fee is that straw for the camel, but CO never gave the proposition a true test.
I also wonder how much of an accounting goodwill charge CO will be taking in the future, let alone if there’s a drop in passengers, because of the rising discontent from previously loyal fliers over the downgrading of OP and over rising nickle and dime fees.
Lastly, if Easyjet and Ryanair can offer a reduced fee for people who know they will check a bag when they book a ticket online, why can’t CO? Make it non-refundable, so if you decide not to check your bag when you’re at the airport, CO keeps the money; a little 21st birthday Vegas thing in your own home. If you do check the bag, you’ve saved $5, or whatever the discount is. Isn’t the whole idea of things like online check-in and buying a ticket on the web supposed to save CO money and save time and manpower at the airport? Wouldn’t having the bag thing done online do the same?
Instead of having agents take time to process bag fees, the kiosk could ask something like, “Did you bring the bag(s) you already paid the checked bag fee for?”, and the tag(s) would just come out, and people would be on their way much faster.
I’d really be curious to find out how much longer it takes to
1 - clear a plane, both domestic and international (especially), through the check-in process when checked bag fees are added to the processing time;
2 - as I’ve written before, get a plane away from the gate because of too many gate-checked items.
This checked bag fee issue really isn’t one for me at all, forgetting about my status. The last time I checked a bag was right after LGW imposed their one carryon only rule and I was caught unawares of it; from that point on when I traveled to the UK, I made a point of leaving the laptop backpack at home and carrying the laptop in its cushioned sleeve inside the bag I can fit overhead, with the chargers, etc. in one of its pockets.
However, as I wrote previously, I’ve already been held up, especially on international flights, by last-minute gate-checking of bags brought on board, so it’ll be “interesting” to see what happens with the new fee in place.