Airline passengers want more self-service options

Hey, airlines: passengers don’t want your help. Seriously. We’d rather take control of our fates. Let us make our own choices and pay for what we consume.

Well, that’s what a new survey reveals. The fifth annual SITA/Air Transport World Passenger Self-Service Survey finds that air travelers would like a bit more independence. Seventy percent, this year, want automatic boarding gates – where scanning a boarding pass opens a turnstile – up from 57 percent. In fact, self-service is already the norm, with more than 70 percent using airport kiosks for flight check-in, and two-thirds want to see expanded kiosk use, including: paying baggage fees, purchasing meals, printing bag tags and getting delayed luggage.

I guess this provides support for that old saying: if you want it done right …

[photo by joiseyshowaa via Flickr]

Five reasons airline fees up 50% year-over-year

Does your wallet feel a little bit lighter? A new USA Today analysis reveals that airline fees are on the rise, with some up more than 50 percent relative to a year ago. The study compares the extra fees (not to be confused with fares) of 13 airlines and shows just how important this revenue source is to the airline sector.

According to USA Today, “The numerous fees are a sore subject for many fliers, but their dissatisfaction hasn’t deterred airlines from bringing in record revenue from additional fees.”

The fees were good for $2.1 billion last quarter, with $893 million of it coming from checked bags and $600 million from changed reservations.

So, where did all this money come from? Here are five ways airlines have turned those extra charges into a big business:

1. First checked bag: most airlines in the United States hit you for up to $25 for the first bag you check, with only Southwest and JetBlue abstaining. Most charged $15 a year ago, according to USA Today, with four not playing this aspect of the fee game.

2. Change fee spikes:
a year ago, the most expensive coach change fee was $250, charged by Continental, Delta, United Airlines and US Airways. This year, it surged to $300, an increase of 20 percent, charged by American Airlines for some international flights.

3. Pay to call: still resisting the internet? Booking by phone costs an extra $35 on US Airways, while Allegiant Air hits you for a $29.98 round-trip booking fee and another $14.99 for “convenience.”

4. Preferred seating: United asks for up to $159 for preferred seating, which can give you up to five more inches of leg room. A year ago, it would have set you back only $119.

5. Get a receipt: Continental (for which this isn’t new) – along with American, Hawaiian and US Airways – have an extra fee for passengers who want a receipt after they have taken their flights.

[photo by Deanster1983 via Flickr]

Airline extra fees: $2 billion in three months

Airline fees are definitely not going away anytime soon – not after the second quarter it gave the airline industry. Carriers in the United States raked in $2.1 billion in fees and extra charges in the second quarter of this year, a 13 percent year-over-year surge. And, it was good enough to deliver the sector’s first profitable quarter since 2007.

Well, here’s the worst part for you: most of it came from checked baggage fees. This annoyance was good for $893 million in the second quarter of 2010, a gain of 16 percent from the second quarter of 2009. Reservation fees were good for $594 million, with ancillary revenue (e.g., frequent flier mileage sales and pet fees) reaching $618 million.

Delta benefited most from the fees that passengers hate most, at $682 million. American Airlines and US Airways were next.

[photo by cliff1066 via Flickr]

Flying Wizz Air, European low-cost airline


I just flew with Wizz Air, a major budget airline in Europe whose name and stunts I had previously only snickered over. It turns out in addition to offering low fares across Europe, they are also the largest carrier in Hungary (at least according to Wizz, Malev Hungarian would beg to differ) and a major player in Poland, Romania, and Bulgaria. Last week I traveled to Bulgaria (look for some future Weekending posts soon) and decided to try to fly across the country from the Black Sea town of Varna to the capital city Sofia rather than spend another eight hours on a bus. As is often the case with budget carriers, Wizz has caught a fair amount of flack for their nickle-and-diming fare structure and customer service, so I was anxious to experience it first-hand.The booking process
The low-cost carrier advertises flights as low as 15 GBP from London to Poland before taxes and fees, and I found fares from Varna to Sofia starting at 78 Bulgarian (around $50 USD) plus a few bucks for taxes. Not too bad, a lot pricier than the bus but much faster. Enter the laundry list of service fees. First, you are hit up 5 Euros per passenger to use a credit card (only other options are European credit cards or bank transfers that aren’t possible for US travelers). Next, you are offered a bunch of services that might be useful for some (extra legroom, flexible booking, priority boarding, etc) but not integral to the flight. Then comes the big guns: baggage allowances. Whether I’m traveling for two days or two weeks, at maximum I pack a standard wheelie carry-on and a purse, and avoid checking bags whenever possible. Wizz allows just one piece free, up to 10 kg (22 pounds), and charges 15 to 60 Euros per bag depending if you select the option online, at the airport, or at the gate. Not wishing to be caught with a surprise charge at the airport, I opted to check one bag. Final tally: 117 Bulgarian leva per ticket or $76 USD, booked less than two weeks in advance.

Pre-departure
Haven’t even gotten to the airport and there’s another potential fee: flight check-in. It’s free if you do it online up to 7 days in advance AND print boarding passes, or 10 Euros if you wait until arriving at the airport or can’t find a printer. After entering your passport information and checking in online, your boarding passes are available as web documents or PDFs. I downloaded the PDFs and emailed to my hotel in Varna, who were kind enough to print, but boarding passes via email. Arriving at the airport, they will still check your documents, but my baggage was not scrutinized and I noticed several fellow passengers with more than one bag to carry on, so I may have been able to get away with a purse and a rollerboard.

In-flight experience
Seating on the flight is open, causing the usual every-man-for-himself rush at the gate, but inside the plane, seats are relatively comfy with snazzy purple leather seats. There is an excellent (and free!) in-flight magazine with great destination info and articles that made me want to move to Poland immediately. The Varna to Sofia flight was too short for the full food and beverage “service” (i.e. they didn’t wheel out the cart of stuff you pay for) but the usual drinks and snacks were available for purchase at typically high prices (2.50 Euros for water, 3 Euros for Cup Noodles, which is sort of a great flight food idea). Flight attendants were helpful and cheerful in the signature purple and hot pink colors.

All told, I’d fly Wizz again (especially to Poland), especially if I were near to one of their hubs. Fares are much lower than the competition (Bulgarian Air priced out at 211 leva for the same route) and if you stop looking at fares as inherently all-inclusive, the a la cart structure is actually refreshing and honest. There aren’t many perks and no in-flight movies or tv, but with most flights under 3 hours, you can get by. Airline experiences are all in the seat of the beholder, but with prices this low, a leather seat and free English-language reading material feels more luxe than low-cost.

Could airline baggage fees create another Steven Slater?


We’re still in the early stages of figuring out just want made flight attendant Steven Slater jettison himself from a JetBlue plane via the emergency slide. There are conflicting accounts from the passengers on board, including those who allegedly pushed Slate over the edge, and then there’s Slater’s story about having been beaten by an unruly passenger’s bag. He raised the issue of how passenger carry-ons are getting out of control – and how they’re only making flight attendants‘ jobs harder.

At the same time, we’ve seen a rise in the number of airlines charging fees for checked luggage. Before this happened, passengers were motivated to bring their luggage on board by the lengthy waits at carousels upon arrival. Now that you’re increasingly likely to have to pay for that dubious privilege, it’s even harder not to carry more on board with you. So, the overhead bins are becoming tighter, and passengers, eager to take their seats upon boarding and get onto terra firma upon arrival, are tangling more and more.

Not everybody has rushed to shove what they would have checked into the overheads, of course. Airlines are reporting billions of dollars in aggregate from ancillary fees, including those for checked bags. That money has to be coming from somewhere, of course. Nonetheless, there’s now even more reason to try to get your bags into the cabin, even with JetBlue’s “first checked bag free” policy.
So, the airlines have realized a return on customer frustration (a financial ratio I wish really existed), making money on checked bags, and at the same time, the flight attendants are sustaining headaches from passengers who are trying to dodge the cost. It’s no fun for anybody, particularly the passengers, who are paying to be put into this situation.

The big question remains: are these policies the breeding ground for the next Steven Slater?

Doubtless, Slater has been off-kilter for a while, having indicated that he’s been thinking about doing something crazy (like this stunt) for most of his career, which is closing in on a quarter of a century. While there are plenty of disgruntled and annoyed flight attendants out there – as there are disgruntled and annoyed people in any profession – this is the first time one of them has a deployed a safety device that could double as a weapon. Most have found ways to cope with the irritations that come with the contemporary flying workplace, and it seems safe to assume that Slater probably hasn’t inspired further in-flight shenanigans.

The implications of having to pay to check your bags are probably being felt in the cabin, but they don’t seem likely to inspire further (alleged) criminal mischief and reckless endangerment. As long as the airlines keep making money of these policies, and it appears likely they will, expect them to stick around for a while. Let’s face it: airlines need the cash. Unless there’s a direct connection between making money and creating another Steven Slater, you’ll have to keep ponying up a few bucks to check extra luggage.