Have the Airlines Succeeded when . . .
 

Have the airlines succeeded when our reality now is just asking them . . "Please get to where I am going on the same day I am suppose to??"

I can understand business and budget decisions, escalating fuels costs and competition . . . government regulations, security hassles, no food, tighter pitch . . . yada yada yada . . . but, after a moment of ranting we fall to the new regime.

Like the attention span of media, the spin trick being, manage the issue for 24 hours because after that you are yesterdays news.

Same Day service will soon be someones motto or marketing slogan :)

Consumers have won, although they may not realize it. Price is the determining factor for the vast majority of travelers. Less luxury = lower cost. The market has spoken; people want cheap flights and are willing to go without the freebies they used to get in exchange for lower fares. Oh sure they love to complain, but that's because people always love to complain about something.

In the end the free market has worked. People want cheap flights. They got cheap flights. If some day the people collectively decide they're willing to pay more to get more the airlines will respond to market forces.

Actually this option hasn't been eliminated - customers can still pay more to get more. Want more legroom? Pay for an Economy Plus seat on UA (or premium seats on other airlines). Feeling nostalgic for onboard meals? Sandwiches and snacks are often available for purchase. Want to check 3 bags? No problem, pony up some cash. Works out pretty well for those of us who generally didn't need those services in the first place.

Is this a "be careful what you ask for, you just might get it moment??" :)

Many of these features have been included free in the past. Airlines are following a pricing model to have customers pay for what they want.. I don't know if consumers necessarily win or lose.. but I do know, instead of paying once, it seems you're paying 1, 2, 3, 4 or maybe 5 occurences on a standard flight.

Just like it should be. People don't expect to pay for the hamburger and get steak at a restaurant. But for some reason they expect to pay $59 for a ticket and get first class service with it.

You want more, you pay more. You want less, you pay less. Sounds ideal to me.

Actually, that has been my preference since Day One. Airlines are a business. They have succeeded when they make a profit. We, the customers, are free to use their product or not. Nobody is forced to fly. It's a choice.

Since deregulation the airlines have been in sort of game of chicken with the public over the question, "How much pain and insult will passengers put up with in exchange for a cheap ticket?" The winner is obvious.

In theory, a free market is supposed to result in people getting the best value for the lowest price. Seems like air travel is exempt from that equation.

My question: has the ala carte pricing scheme in the US actually resulted in cheaper fares, or just higher profit for the airlines? It's an honest question and I don't know the answer. Adjusting for inflation, are base fares actually cheaper now than they were when extras were included?

No, a free market is supposed to get consumers what they demand (on the whole) at competitive prices. Evidently the vast majority of consumers want flights to be (a) as cheap and (b) as frequent as possible, so that's what airlines have delivered. A smaller number are willing to pay profit-generating prices for food or extra legroom, so some airlines offer those as options. Although I'm sure millions of customers would love it if on-board massages were offered, not enough are willing to pay enough for this service to make it profitable, so it's not offered (even if it would add "value" to the product). No demand, no supply.

Of course, this is demand in the "money talks" sense. I'm sure if you polled passengers and asked if they wanted more legroom, they'd overwhelmingly say "yes." But increase legroom by 10% and fares by 10% and everyone defects to another airline. AA learned this the hard way.

I can fly 2000 miles for $200 in 5 hours. The same trip by car would take me 4 days and cost $500 for gas, meals, hotel stays and wear/tear on my car, plus the cost of my time for those 4 days vs. 5 hours which is thousands of dollars of opportunity cost in lost wages.

Flying is not a good value, it is an exceptionally good value. It is just about the best value available to a consumer when considering the alternative modes of transportation.