Two billion reasons why you pay to check bags

Or, you could call it “2 billion reasons why flight attendants shouldn’t get raises.” It works both ways.

The labor debacle at British Airways reminds us of the perpetual stupidity turmoil that has come to characterize the airline industry. Not to pick on BA, but the strike shows how disconnected the flight attendants are from the nuts and bolts of the business, and it translates across the pond. Yet, passengers are in a similar state of denial, feeling wronged by the airlines as they are nickled and dimed for “amenities” such as checking luggage. With the latest data from the Bureau of Transportation Statistics, it’s pretty obvious that airlines need to bring in some more money, and it has to come from somewhere.

In the United States last year, 769.9 million travelers set foot on planes (departing from, arriving to or completely domestic), a decline of 5.3 percent from recession-stained 2008 and off 8.2 percent from 2007, when 832.2 million passengers flew the friendly skies. This was the first time the number of fliers fell below the 800 million mark since 2004, in which 763.7 million passengers boarded planes. Think about it: 2009 is basically 2004. The airline industry has lost five years of growth.Meanwhile, fewer people were paying less for tickets, with the average fare falling $30 from 2007 to 2009 – settling at around $315. The increase in demand led to the shedding of around 700,000 flights from 2008 to 2009.

In all, this dynamic cost the U.S. airline industry approximately $2 billion … and that doesn’t include financial losses elsewhere. Fewer customers spending less led to a profound decline in revenue, and the airlines need to find a way to get it back. They’ve been able to close the gap, in part, through the ancillary fees we’ve all grown to hate. Every time you pay to check a bag, eat an unsatisfying sandwich or grab a little more leg room, you’re helping to keep these guys in business.

Of course, this would be a lot easier if the airlines would do their part. Price increases are frustrating when you see striking employees looking for more in a market where their salaries are effectively unsustainable. And with some flight attendants willing to subject themselves to interviews with 18 airlines in order to land a job, it’s pretty clear that demand is sufficiently high to make pay raises not only unnecessary but irresponsible.

So, it’s time for both sides of this equation to accept reality.

Passengers: you’ll be paying for extras. The airlines need it right now, and the beauty of momentum is that they’ll keep charging us for everything imaginable even when the economy recovers, because they aren’t going to slash a revenue stream that’s paying off.

Flight attendants: raises? Look at the economics of the situation. If passengers are paying more for the same service and demand is high for a shrinking number of positions, there’s no reason to pay them. With revenue in the tank and an aggregate net loss of $4.6 billion for 11 U.S. airlines last year, there’s no money for raises … unless there’s a new way to extract blood from a stone, of course.

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All that and a bag of SunChips: Brand-marketing targets air travelers

Is nothing sacred? It used to be that one of the few places you could escape the never ending onslaught of advertising was the bathroom, but even that’s changed, as public urinals and toilets have become mini-billboards.

That’s one of the few niceties of flying- it provides you with an excuse to turn off the Blackberry, close your eyes (to block out the ads posted to the seat back or on the in-flight TV monitor), and escape for awhile. Have a drink, a little snack…

Wait a minute. Is that…an advertising slogan on your peanuts? Brand in the Hand, a California-based company, now offers third-party advertisers the opportunity to repurpose snack bags, beverage cups, cocktail napkins and other on board consumables into promotional vehicles.

Explains Darrin Sarto, Director of Brand in the Hand, “Having that snack is a very positive part of the flight. You had to go through security, lug your baggage around, get seated and all of the [sic] sudden, the flight attendants are handing you a free bag of peanuts. And, oh, there’s a message to read.” Kind of like a fortune cookie…only totally invasive.

This month, Hilton Garden Inn initiated a campaign on board Delta flights advertising its “Cook-to-Order” meals on peanut and pretzel bags. Expect to see other Brand in the Hand ads on AirTran, Alaska, American, Continental, Southwest, and United.

“Getting our brand message in the hands of consumers…in the act of travel and thinking about hotel choices is an ideal marketing moment for us,” Jim Cone, Vice President of Marketing at Hilton Garden Inn, said in a release. How thoughtful.

Galley Gossip: Flight attendant revokes travel privileges from husband

Dear Heather,

Someone I know was requested by his wife to meet him in another state due to a medical emergency on her part. She had been working out of the country. As a retired airline employee, she had flight benefits, which she used to book her husband a flight. As soon as he landed, instead of finding his ailing wife, he was served with notice she was filing for divorce. Once he flew back home, she yanked the flight benefit, leaving him unable to afford to fly back to the far away state to defend his property rights in the divorce. Just wondered if you thought the airlines would frown upon using flight benefits to lure someone into a state under false pretense.

K

Dear K,

Now that is some evil shhh….you-know-what! Wow. Just when you think you’ve heard it all, something like this happens. I feel for your friend, I really do. I can’t believe his soon to be ex lied about being sick in order to get him where she wanted him. Unfortunately for your friend, the retired flight attendant had every right to revoke his travel benefits. I know I would! I’ll get to that in a moment.
While the airline, I’m sure, would frown upon an ex employee using their travel privileges to do such a thing, it’s highly doubtful the airline will take action right away – if even at all. Only because there are two sides to every story and this is a marriage dispute, not a work related issue, involving an EX employee who can’t be reprimanded or fired. Anyway, it’s all he said-she said at this point. What right does the airline have getting involved? What right do we even have judging? (Yet judge we will!) Remember there’s a reason they’re getting a divorce in the first place. Not that it’s any of our business, but it probably has something to do with the fact they weren’t even living together in the same country when the papers were served, which explains why this question about her traveling benefits came to be.

The flight attendant lied. That wasn’t nice. In fact, it was pretty evil. But people do lie, especially those involved in nasty divorce battles. It sounds to me like your friend isn’t angry that his wife lied, but that he lost his right to travel. I’ll be honest with you, I don’t understand how divorces work so I can’t comment on his right to defend himself in another country. What I can tell you is flight attendants are responsible for the behavior of those traveling on their buddy passes. This is why flight attendants don’t just hand them over to anyone! If her soon to be ex husband were to misbehave on a flight and get written up by another airline employee, the retired flight attendant could very well lose her travel benefits forever! I wouldn’t chance it. Those are her passes. She earned them. She has every right to decide who gets to use them regardless of what’s going on in the marriage.

Do you believe in karma? I do. So if this retired flight attendant is as bad as you believe her to be, I’m sure she’ll get hers in the end. Until then, let the divorce judge decide. Just my two cents…

Thanks for writing

Heather

Photo courtesy of DCMaster

Travel trends: Are you a “Four-Percenter” when it comes to travel?

If you spend enough time traveling, you’ll start seeing people that qualify as “Four-Percenters” — individuals who took 3+ foreign trips in the past 3 years AND 3+ domestic trips in the past 12 months; they represent only about four percent of the US population. We call them “Four-Percenters,” because they take to the air or the highways more often than the other 96% of their fellow Americans. They aren’t just travelers. Rather, they are People Who Travel.

How does a Four-Percenter travel differently than the other 96% of Americans?

In general, Four-Percenters are the kind of people who —

  • tend to travel independently instead of in an organized group;
  • swap lost luggage stories in airline lounges or brag about frequent flier statuses;
  • know every trick in the book to score an upgrade;
  • offer travel tips freely (maybe too freely?);
  • are likely to mistake Up in the Air for an autobiographical film;
  • choose a different destination for every new trip they take;
  • spend an average of $3,100 on foreign travel each year (nearly $700 more than average) and take 60% more domestic trips than other Americans.

Maybe you’re a homebody at heart — not likely if you’re reading Gadling — who’s forced to travel for work, or you might be an aspiring globetrotter that just hasn’t racked up enough miles. Whatever your situation, do you agree or disagree with how the Four-Percenters think about travel?

Are YOU a Four-Percenter?

Data source: 2009 Survey of the American Consumer

Captive audience: crying babies and air travel

We’ve all been there: the flight with the screaming infant. It strikes fear into the hearts of many to see a baby coming down the aisle.

The issue of crying babies and unruly children on flights divides air travelers. Many say they’re exasperated by parents who seem to do little to quiet or control their offspring, while others counter that fliers should be more patient and understanding.

Even normally well-behaved babies turn into screeching hellions when changes in air pressure hurt their ears. The question is, what to do about it?

Some passengers think airlines should seat families with children in one section of the plane, while others slap on headphones and watch a movie. If a baby on board has you ready to down Valium, it helps to understand the reason for in-flight tantrums.

“Because babies don’t know how to talk, crying is their only way of communicating, and can mean a number of things: I’m hungry, I need to be changed, I’m bored, I’m cold, I’m hot,” says Dr. Jennifer Shu, a pediatrician in Atlanta, Georgia, and a CNN.com Living Well expert.

That doesn’t make it okay for parents to ignore tears. “The other people on the plane do not have to be subjected to your child crying. It is absolutely not something that they should be expected to endure. They can’t leave.”said Dr. Susan Bartell, a psychologist specializing in parenting issues and author of “The Top 50 Questions Kids Ask.”

Tips for parents and passengers

• If a baby reacts to changing cabin pressure, give it something to suck on such as a bottle or a pacifier.

•Always make an effort to quiet a crying baby. “If other people see you trying, even if you’re not succeeding, they will feel at least you’re … doing your best to stop it.” explains Bartell.”You may have to get out of your seat and walk around [with your child].”

• If there is a baby screaming and the parents aren’t reacting, ask a flight attendant to say something to them.

• Glaring at the parents of a loud or unruly child may not always work. “Sometimes the parent is so thick-skinned and they don’t care, so it isn’t helpful,” says Bartell.

• Give parents the benefit of the doubt. Many babies sleep right through a flight. Remember- one day, it might be you trying to soothe an infant in the midst of an angry economy class.