AA "de-preferenced" by Expedia - "suspension" now lifted April 4, 2011
Dec 28, 2010, 1:32 pm
#151
Join Date: Dec 2007
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Dec 28, 2010, 1:33 pm
#152
Join Date: Mar 2007
Programs: AA 1MM
Posts: 3,182
I'm curious how much money Expedia makes by selling vacation packages that include AA travel (such as Caribbean vacations, ex-MIA cruises, South America packages). If it's significant, seems like AA's next move might be to cut off their ability to do that, but perhaps that would be too much to AA's detriment as well.
Dec 28, 2010, 1:36 pm
#153
Join Date: Aug 2010
Location: Texas
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Baggage, as an example, is a service that costs airlines money to operate, and now that cost is exposed and paid for by those that use it. If you don't check bags, there's no additional cost. If you do (and you're not elite/otherwise exempt), you pay for what you use. It's a la carte pricing for air travel.
It was interesting hearing from US Air at SMDII that if it weren't for baggage, they wouldn't have to invest so significantly in counter service - they could dramatically downsize that expense and move most of what needed to be done to kiosks to print passes to get through security and handle everything else at the gate. Baggage, in and of itself, is a huge operation: counters, attendants, conveyors, handlers, transport equipment, tracking systems, etc. All of that has to be paid for, and now it's being paid for by those that use it rather than everyone subsidizing the cost.
Strangely, it's also what's caused the fight for the overheads... people packing more into carryons, carrying on more bags, etc. It's why I predict we'll likely see someone move to "pay for overhead" fees soon - if it won't fit under your seat, you pay to put it overhead. I'd guess $10 per "slot", with a slot being able to hold a properly sized roll-aboard. Just my guess.
Dec 28, 2010, 2:00 pm
#154
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Join Date: Mar 1999
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Some other carriers: the biggest, most profitable, differentiated and with a high customer satisfaction (WN) didn't, as well as another differentiated carrier with high customer satisfaction (B6). The undifferentiated middling carriers (+ VX to be fair) are the only ones who followed AA, an undifferentiated middling carriers itself.
Dec 28, 2010, 2:14 pm
#155
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Dec 28, 2010, 3:40 pm
#156
Moderator: American AAdvantage, Signatures
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Location: London, England
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I admit that Spirit isn't the most customer-friendly airline, but the precedent has been started and it's possible others will follow...
Dec 28, 2010, 5:20 pm
#157
Join Date: Apr 2002
Location: MI
Programs: NW/DL Plat->Gold->Silver, AA EXP 1MM
Posts: 855
Didn't know that--couldn't have been long ago that I saw that great AA fare SAN-OGG on Kayak. I was looking tonite and AA has disappeared (and so has the fare).
This actually sounds quite serious for AA. Think a blizzard of emails to AA could get them to rethink all this?
This actually sounds quite serious for AA. Think a blizzard of emails to AA could get them to rethink all this?
Dec 28, 2010, 5:29 pm
#158
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Location: Chicago
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Posts: 11,956
AA is still on Kayak.
Dec 28, 2010, 6:16 pm
#159
Join Date: Apr 2002
Location: MI
Programs: NW/DL Plat->Gold->Silver, AA EXP 1MM
Posts: 855
Dec 28, 2010, 6:30 pm
#160
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Join Date: May 2004
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Some other carriers: the biggest, most profitable, differentiated and with a high customer satisfaction (WN) didn't, as well as another differentiated carrier with high customer satisfaction (B6). The undifferentiated middling carriers (+ VX to be fair) are the only ones who followed AA, an undifferentiated middling carriers itself.
Last edited by mvoight; Dec 28, 2010 at 6:39 pm
Dec 28, 2010, 6:35 pm
#161
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Like airlines are alone on this??? How many retailers say they will meet (or beat) a competitor's price? or will accept competitors' ads.. Have you never seen gas stations across the street from each other compete on price? So, in theory, WN could lower your fare by charging for baggage, since after all, it's not really "free".
Dec 28, 2010, 7:53 pm
#163
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Like airlines are alone on this??? How many retailers say they will meet (or beat) a competitor's price? or will accept competitors' ads.. Have you never seen gas stations across the street from each other compete on price? So, in theory, WN could lower your fare by charging for baggage, since after all, it's not really "free".
while none of us have the data on this.. I don't think one bit of the cost savings by charging a la carte has saved me a penny.. imho, its all gone to the bottom line
Dec 28, 2010, 8:05 pm
#164
Join Date: Oct 1999
Location: Third planet from the Sun
Posts: 7,022
None of that was free. It was simply included in their pricing model. The "race to the bottom" for prices necessitated taking out those things from the ticket price and including them instead as fees. Tickets are cheaper, flights may or may not be once you get "all in."
Baggage, as an example, is a service that costs airlines money to operate, and now that cost is exposed and paid for by those that use it. If you don't check bags, there's no additional cost. If you do (and you're not elite/otherwise exempt), you pay for what you use. It's a la carte pricing for air travel.
It was interesting hearing from US Air at SMDII that if it weren't for baggage, they wouldn't have to invest so significantly in counter service - they could dramatically downsize that expense and move most of what needed to be done to kiosks to print passes to get through security and handle everything else at the gate. Baggage, in and of itself, is a huge operation: counters, attendants, conveyors, handlers, transport equipment, tracking systems, etc. All of that has to be paid for, and now it's being paid for by those that use it rather than everyone subsidizing the cost.
Strangely, it's also what's caused the fight for the overheads... people packing more into carryons, carrying on more bags, etc. It's why I predict we'll likely see someone move to "pay for overhead" fees soon - if it won't fit under your seat, you pay to put it overhead. I'd guess $10 per "slot", with a slot being able to hold a properly sized roll-aboard. Just my guess.
Baggage, as an example, is a service that costs airlines money to operate, and now that cost is exposed and paid for by those that use it. If you don't check bags, there's no additional cost. If you do (and you're not elite/otherwise exempt), you pay for what you use. It's a la carte pricing for air travel.
It was interesting hearing from US Air at SMDII that if it weren't for baggage, they wouldn't have to invest so significantly in counter service - they could dramatically downsize that expense and move most of what needed to be done to kiosks to print passes to get through security and handle everything else at the gate. Baggage, in and of itself, is a huge operation: counters, attendants, conveyors, handlers, transport equipment, tracking systems, etc. All of that has to be paid for, and now it's being paid for by those that use it rather than everyone subsidizing the cost.
Strangely, it's also what's caused the fight for the overheads... people packing more into carryons, carrying on more bags, etc. It's why I predict we'll likely see someone move to "pay for overhead" fees soon - if it won't fit under your seat, you pay to put it overhead. I'd guess $10 per "slot", with a slot being able to hold a properly sized roll-aboard. Just my guess.
If airlines really wanted to shake things up and base things on cost, tickets would be charged on a cost per mile formula. Rather than be logical about this, they will most likely start charging a fuel surcharge for domestic flights sometime next year. That is another fee and has nothing to do paying for the cost of a service.
Dec 28, 2010, 8:40 pm
#165
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Join Date: Mar 1999
Posts: 12,097
AA's spin on this
Interview here with the guy at AA that's behind this distribution spat.
The interviewer catches on quickly on how AA is BSing about how this is all pro-consumer and giving consumer choice when he finds out that none of the consumer "benefits" that they claim are behind their push have been implemented in AA.com, which is 100% controlled by AA.
I have nothing against AA lowering GDS costs, but please, don't lie to customers.
The interviewer catches on quickly on how AA is BSing about how this is all pro-consumer and giving consumer choice when he finds out that none of the consumer "benefits" that they claim are behind their push have been implemented in AA.com, which is 100% controlled by AA.
I have nothing against AA lowering GDS costs, but please, don't lie to customers.
