Southwest wins on bet against extra fees

by Tom Johansmeyer on

How did Southwest score its recent record revenue? Well, it could be because it isn’t jacking up fees for all the extras. The decision to do business the old fashion way seems to have been good for a quarterly profit of $112 million and may provide a good reason for other airlines to reconsider these unpopular measures.

In a roundup of coverage on the airline’s quarterly financial results, USA Today, found the answer in reports by Bloomberg and the Las Vegas Sun, attributing the results to “the company’s policy of not charging for bags and excellent customer service offered by employees.”

Rather than take the short returns on charging for blankets and checked luggage, Southwest is apparently making a longer-term bet on customer satisfaction, with a policy that’s more likely to appeal to the average passenger.

Is it sustainable? Well, that remains to be seen. It’s worth keeping in mind, though, that Southwest has built its business on something of a contrarian strategy … and it’s been working.

[photo by Mr. T in DC via Flickr]

Airline fees: Please don’t lie, don’t be moronic

by Tom Johansmeyer on

As much as you may hate ancillary fees on airlines, they’re clearly making a difference. The nickel-and-diming of the average passenger was good for a whopping $7.8 billion last year … up 42 percent from 2008. Airlines are making serious cash on inconvenient fees, which means they aren’t going away. The coming travel market recovery (look for it in 2011) will put more asses in seats and, of course, more bucks in the airline industry till. What was $7.8 billion last year only has the potential to become much, much larger.

And that could be the problem.

It might not be easy to sympathize with the airlines, companies with well-entrenched reputations for being among the most poorly run enterprises since the dawn of capitalism. But, at least when they were on the ropes (for real this time … right?), we could stomach that the ancillary fees were a survival mechanism. When revenue per available seat-mile starts to come back, passengers will become increasingly offended by the price tags popped on blankets and baggage and everything in between.Fortunately, there is a silver lining in all this: anything we feel is totally irrelevant. Airlines will charge what they can charge. Since ancillary fees are a market-wide trend, we’ll have to get used to them. Some airlines aren’t heading down this road with zeal, but they may not go to your desired destination, making the offer of goodwill moot.

And, if the extra charges were slashed, ticket prices would just increase for no apparent underlying reason, and we’d all have to share in the cost of the blanket that the gump in seat 11D feels he needs to stay warm.

The real issue, it seems, isn’t prices – they are what they are. Instead, passengers would be happier less pissed if the airlines were a bit more transparent. Notes Tim Winship of SmartTraveler.com:

The word “sneaky” appears prominently and often in consumers’ grumbling about fee-for-all pricing. And more substantively, adding injury to insult, consumers can’t make meaningful price comparisons if they don’t have ready access to all-inclusive prices from all airlines, whether it’s on the carriers’ own websites or on the site of an online travel agent.

Full fee disclosure is something the airlines should have done proactively, from the beginning. Soon, they may have no choice-as mentioned above, the DOT has included language in its proposed passenger-protection legislation that would mandate up-front disclosure of all fees associated with a particular ticket price.

The winning (or at least non-losing) formula for airline pricing seems to be simple: don’t be stupid, don’t lie and don’t charge people for the lav.

Irish Minister’s fury over Ryanair $120 baggage fee

by Scott Carmichael on

Ryanair has yet again managed to make the news with their outrageous fees – though this time, they may have annoyed the wrong person.

For the busy summer season, Ryanair passengers will have to pay £5 more for their checked luggage – making the first checked bag £20 ($29) , and second bag £40 ($58). The real kicker comes when you are unable to check in online – which will double the checked bag fee to £40 for the first bag and £80 for the second.

With these numbers, a family of two (each with two bags) that finds themselves unable to do an online check in could be paying as much as $350 for the right to travel with their bags. And when you consider that seats on Ryanair sell for as little as $5, you’ll see why a bargain airline isn’t always the cheapest option.

Irish Finance Minister Sammy Wilson is so outraged, that he is urging passengers to take their business elsewhere. Mr. Wilson says Ryanair is treating passengers with “arrogance and disdain”.

Of course, the big winner in this new fee scheme is Ryanair- just this week, they announced a healthy profit from the past year, making them one of just a handful of profitable airlines in the world. So – if you plan to travel on Ryanair this summer season, be sure to verify that you can do online check in, and that you pack your stuff in one bag, otherwise you may burn through all your vacation cash in just a few flights.

(Photo: AFP/Getty Images)

BREAKING: Spirit Airlines to charge up to $45 fee for carry-on bags

by Grant Martin on

There’s big news in the airline industry today, as Spirit Airlines announced the addition of carry-on baggage fees to their already healthy roster of post-ticketing charges.

For those paying online, each carry on bag will cost an additional $30 unless you’re in Spirit’s subscription-based $9 Fare Club. Those lucky members will only be charged $20 per bag. If paying for the service in-person at the airport, the fee jumps to $45 per bag. Personal items such as purses or briefcases will continue to be free as long as they fit underneath the seat.

Although Spirit Airlines is the first carrier to initiate such a fee, there’s broad speculation among the travel community on whether it will be picked up by other carriers — checked baggage fees, paid snacks and seat selection, after all, have all been nearly universally adopted over the last three years. Perhaps this is the beginning of the end of free carry-on luggage industry wide.

On the bright side, however, there should be plenty more overhead bin space after August 1.

New baggage fees will go into effect on August 1st. You can check out more details and see whether your bag qualifies as a “carry-on” or a “personal item” over at spiritair.com.%Gallery-76818%

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Trick, repack and rethink your way around the new luggage fees

by Scott Carmichael on

If you regularly check a bag, then I’m sure the airlines would like to personally thank you for the extra income. In just two years, we’ve gone from one airline experimenting with a pay-to-check baggage system, to an industry where paying to check any bag is the new standard. Thankfully, there are ways around having to check a bag.

Obviously, this won’t work if you are carrying everything plus your kitchen sink, but smart packers can easily pack and carry everything they need for an extended trip as carry-on luggage. In this Gadling guide, we’ll explain how you can sneak a third carry-on with you, how you can check a bag for free at the gate, or when to look into simply shipping your bags.

Don’t know whether your airline charges for checked bags? Check out this comprehensive chart from Airfarewatchdog.com.


Rethink your bag strategy to maximize what you can carry

Are you traveling with a laptop bag and a small duffel? Or a handbag and a small rolling case? Rethink how you carry your stuff if you want to maximize your space. Get the largest rolling case (or duffel) the airlines allow, and find the largest expanding laptop bag that can fit under a seat.

Ladies, be aware that airlines WILL count your handbag as a “personal item”, so leave room in your two other bags for your handbag. A gate agent having a bad day will stop you and demand that you combine your items.

Find lighter luggage

Every extra pound wasted on your luggage, is a pound you could use to pack more stuff. Rolling luggage has really evolved in recent years, to the point where a very sturdy piece of rolling luggage can weigh just 5 pounds. For more lightweight products, check out our lightweight travel gift guide.

Use a jacket as a third carry-on

Yes, that’s right – a jacket can be a very sneaky third carry-on without anyone noticing. Annie took the $120 Scottevest “Women’s essential jacket” for a spin last year, and explained how its 18 pockets let you carry the contents of one bag in your jacket. Nobody will notice you are actually wearing a bag, which gives you two more bags for your crap.

Scottevest garments are available in many styles, colors and sizes at scottevest.com.

Never make it LOOK heavy

No matter how much stuff you pack in your bags, don’t make it look heavy. The moment a gate agent sees you struggle with a bag, is the moment they’ll ask you to have the bag weighed, or point out that it is just too heavy for the overhead.

Make use of the handles on your bag, never drag a non-rolling bag through the airport, and never ask the flight attendant to help stuff your bag in the overhead – chances are they’ll point to the door and tell you to check it.

Board first

Boarding early means boarding when the overhead compartments are still relatively empty. Of course, getting the magical “group 1” on your boarding pass isn’t always easy (or possible). In some cases, the airline may offer a relatively cheap upgrade to premium economy, or you may be able to find yourself a comp to an entry level elite status.

If you are traveling with a buddy who holds group 1 eligible status, you can usually piggyback off their status.

Have a last minute backup plan

Always designate one of your bags your “flight bag”. If your massive overweight bags get noticed at the gate, and someone demands you check one of them, you don’t want to be the last person holding up the flight because you need to combine items from both bags into one.

Make sure you pack everything you need in one bag, and use the other one for less important stuff. Chargers, medication and your iPod stay together. Of course, refrain from packing expensive items in your “can check” bag, as there is no such thing as a “lucky day” when flying.

Gate-check

Did you make it past the check-in kiosk and the security checkpoint with your obviously overweight bag? If the gate area is packed, ask the agent for a gate check of your bag. They’ll actually appreciate your honesty and willingness to part with your bag. But best of all, they’ll slap a tag on your bag for free. Of course, this won’t work with your massive 30″ suitcase, as someone from the TSA will prevent that from making its way through the x-ray machine, but an expanded 22″ bag won’t be a problem (unless you try and stuff it in the overhead). Some airlines are even experimenting with gate check volunteers, and will reward them with a “group 1” boarding assignment.

Also, do us all a favor and don’t even bother trying to stuff an expanded bag in the overhead – it won’t fit, and you’ll just end up delaying the entire boarding process.

Dump the crap and lighten the load

Really, if you are going on a 4 day trip with two 40lb bags, then you’d better have a damn good reason. When you start packing, start going through some of the junk you have in your bags. Chances are, you don’t need half of it.

Heavy and bulky items like shoes may seem like a must have on your trip, but in some cases you may be better off with lighter flip-flops. Start by repacking your most essential items, then slowly add things you think you might need.


Ship, don’t schlep

Our very own George Hobica already did your homework on this one – in some cases, it can be cheaper, faster and safer to ship your luggage instead of trying to carry it on the plane (or check it).

FedEx or UPS can get a bag to your destination in a couple of days, which means you can leave for the airport without worrying about toiletries, clothes or other luggage. Just bring your small carry-on, and keep an eye on the tracking number. Once at your destination, if the service did its job right, your bags will be safe and sound waiting for you to have a good time.

Rethink your technology

Technology is a good friend of the lightweight traveler. Dump the laptop and get a netbook. Sell your old books and get a Kindle. Throw your old chargers in a box and get a universal lightweight laptop charger.

Yes – the investment in technology will be pretty fierce if you really want to go ultra lightweight, but your back will thank you for it.

Borrow a friend (but not a stranger)

Traveling with a buddy? If you are on the road with someone who knows the tricks, or who simply doesn’t care about paying to check a bag, you can always ask them to carry one of your bags for you. Obviously, only do this with someone who trusts you, and don’t betray their trust by using that bag for your bootleg DVD’s and “herbal products” from Amsterdam. No, really – don’t do it.

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