Skyway Robbery!
Is what some are calling Spirit Air’s decision to begin charging passengers as much as $100
for carry-on baggage (you heard us right
– CARRY-ONs). It is part of a new pricing strategy expected to launch
November 6 – just in time for the year-end rush of holiday travel.
Original Article: CNN Money |
Seem a bit outlandish? Spirit already charges $45 per
carry-on checked at time of departure – the 55% hike is designed to discourage
tendering payment at the gate – an inefficient practice that impedes boarding
and on-time departures.
You want to decrease demand? Increase price. It’s really just
Economics 101, right? Wrong.
In a hyper-competitive industry and – air-mile reward programs aside – virtually identical products, pricing
strategies hold wider implications.
I was led here under
false pretenses…
So Spirit touts itself as a no-frill, low-cost airline. But
so does Southwest – and yet they
don’t charge for carry-ons, heck – they (still)
don’t charge for checked bags.
So you think you’re saving $200 by flying Spirit over
Airline B, but think again. In pricing tickets low, Spirit is able to earn the
patronage of short-sighted deal-hunters up-front.
Once tickets are secured (and,
in most cases, non-refundable) the airline re-approaches passengers; hands
open wide – recouping incremental dollars on the back-end.
No one likes to feel
tricked…
Ok, I'll admit it. This post might have been fueled by raw emotion (having just secured round-trip tickets to
Costa Rica via Spirit). Still, this blogger says there ought to be some
sort of “what you see is what you get,” total pricing rule levied upon the
airline industry – ticket + taxes +
fees. With total cost computed upfront, one can make a fully-informed
decision when they’re headed for the skies.
I drew out my purse; a meagre thing it was. “Five shillings, sir.” He took the purse, poured the hoard into his palm, and chuckled over it as if its scantiness amused him. Soon he produced his pocket-book: “Here,” said he, offering me a note; it was fifty pounds, and he owed me but fifteen. I told him I had no change.
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