Is the era of excessive airline fees really over?

[LL_Travelfan]

Here is an interesting article by Christopher Elliot. Is the era of excessive airline fees really over?

Is the era of excessive airline fees really over?

February 10, 2011

Maybe you heard about the students who “rioted” on a recent Ryanair flight because of the airline’s confiscatory luggage fees.

And maybe you heard the emphatic declarations from the blogosphere that this was the final straw, that enough was enough, and that airlines had finally gone too far with fees.

With the third anniversary of American Airlines’ pivotal first-checked-bag fee just a few weeks away — a surcharge that had a domino effect, paving the way for a fee bonanza that’s returned the industry to profitability, it’s worth asking: Are airlines about to pull back on fees?

The answer lies in the question. Because these surcharges have brought in billions of dollars in extra revenue, literally billions, it’s unlikely airlines will say, “The line has been drawn. We can’t become like Ryanair. Our passengers will riot!”

But for a few hopeful days, I thought I could write such a post. The backlash against Ryanair was pretty severe. A doom-and-gloom prognosis from a prominent airline blogger, who predicted 2011 would be the Year of the Airline Fee, had already angered a few air travelers. The student uprising only fueled the fire.

Then Delta Air Lines announced it would add roomier seats to certain flights, which was a tacit acknowledgment that some of its flights didn’t have enough legroom. There was a report about it sending its agents back to charm school in an effort to improve the customer service experience, too.

I thought: Maybe I can cite these as examples of one airline understanding that customers are mad as hell about the overall flight experience, if not about being nickel-and-dimed by fees.

But then came word yesterday that US Airways had boosted some of its luggage fees, and as I sit here ponding the whole airline experience in 2011, I think to myself — nah, it can’t be that easy.

Take another look at Delta. There’s no evidence it’s backing off from building a business on fees. In just the first three quarters of 2010, it collected $733 million in baggage fees, the most of any domestic airline. Also, it isn’t giving the roomier seats away. You have to earn them with your status or pay extra for them.

Truth is, random anecdotes from Ryanair or Delta are no indication of where we’re headed, any more than the incendiary and uninformed predictions of any blogger. They’re just interesting anecdotes that make for compelling copy.

The fact that Delta added roomier seats the same week as the Ryanair mutiny? Coincidence. And its recurring training program isn’t new, either. I sat in on a similar class last year when I visited Delta in Atlanta.

US Airways’ new baggage fee is the only peg I can hang my hat on. It is slow, steady, a little stealthy. According to its website, oversized bags and those weighing more than 70 pounds now will cost $175, up from $100. The airline claims its new policy is now in line with other carriers.

No major American carrier is going to go where Ryanair has gone, charging for boarding passes and seat assignments and the ability to pay with a credit card. That’s the provenance of cut-rate, overtly customer-hostile air carriers who cater to passengers who are blind to everything but a low airfare.

Instead, they’ll probably pile on the fees slowly, in a way we won’t notice.

Airline fees are unstoppable, sadly. The only thing that can make a difference is sensible legislation that requires airlines to reveal the total cost of an airline ticket.

Sorry, but the fees aren’t even slowing down — mutinies notwithstanding.

And no, this isn’t the Year of the Airline Fee.

It’s the Decade of the Airline Fee.

[kyshel]

"Then Delta Air Lines announced it would add roomier seats to certain flights, which was a tacit acknowledgment that some of its flights didn’t have enough legroom."
The author's interpretation is incorrect. The reason DL is making this change is that customers are willing to pay more for "extra" legroom. They are in business to make money--AKA, profit. The recent snowstorms cost ALL US carriers billions of dollars. They cannot continually sustain those costs and remain profitable. Charm school can't hurt anyone's business!
Has anyone seen fuel surcharges on shipping and upcoming mail/postage increases? I have.

[LL_Travelfan]

United has roomier seating at an added cost in front of economy class. American Airlines reserves these roomier seats for their Gold and Platinum customers still free of charge. Also, as an AMEX Delta Skymiles card holder you can check your bag to Europe free of charge. American Airline still ships one bag free of charge to Europe for their Gold and Platinum customers, so does United (I am not sure on United?)
I have noticed that MSC hiked Rates and Fuel Surcharges on their cruises, but I have not seen anything on USPS mail/postage rate hikes yet.

[eyebright]

United has put a price on everything and now you can pay for lots of "enhancements" not just economy plus, or your bag, but a payment to use the elite line and check in at the airport or $50 to use the lounge. It seems there's a full a la carte menu at the airport these days and I don't think it's going anywhere.

[LL_Travelfan]

I think it is wrong for the airlines to do what they are doing as far as extra fees are concerned. Whatever happened to a straight forward ticket price. They could build in the fees/surcharges, and do away with all this nickeling and dimeing the customer to death. Trains and buses have surcharges too but you just pay for a straight, allinclusive fare. But perhaps this is wishful thinking.

[[email protected]]

I agree with LL Travelfan - and adding that baggage, food, etc. should be included in the ticket price and I see many airlines are now letting just anyone pay extra for those roomier exit row seats - all I know is that if there is an emergency and that little old lady or those folks with the baby better know how to operate those exit doors or we are all in trouble! the price of fule goes up - raise your ticket price and don't tack on an extra $150 fuel surcharge fee - this just happened to me when I purchased tickets - this was on top of all the other ridiculous fees that actually made the cost of my fligh more than $200 higher - disgrace.

[Mountie]

LL_Travelfan, I don't take the airlines fees personally. They are operating a business and we usually have the option to use their service or not.

[kyshel]

I agree with LL Travelfan - and adding that baggage, food, etc. should be included in the ticket price and I see many airlines are now letting just anyone pay extra for those roomier exit row seats - all I know is that if there is an emergency and that little old lady or those folks with the baby better know how to operate those exit doors or we are all in trouble! the price of fule goes up - raise your ticket price and don't tack on an extra $150 fuel surcharge fee - this just happened to me when I purchased tickets - this was on top of all the other ridiculous fees that actually made the cost of my fligh more than $200 higher - disgrace.

So, you want the price of say 2 bags included in your ticket, but you only have a small carry-on?
Keep in mind that a baby is not permitted in an exit row PERIOD. The little old lady, unless she can demonstrate her ability to lift 35# door, will not be allowed to sit there, either. If she can't speak fluent English to assist crew as requested, she sits elsewhere. The premium seats at an exit will have the same restrictions as any exit row. A 14 yr old who's 6'4" is not allowed (wagging the famous Deltalina finger!!)
Fuel surcharges are always going to be an issue when oil hits certain price level. Fact of life.

[jmbklj]

We've all seen airline fees increase over the last couple of years.

From a recent Frommer's article....

A recent survey suggested the worldwide airline industry collected $21 billion in so-called ancillary revenues last year, although that number may be a conservative estimate. Even so, it represents a 38 percent increase from the previous year and a 96 percent increase from 2008.

That's Ridiculous! The Painful Truth about Fees and Flying Your Airline Doesn't Want You to Know | Frommers.com

Passenger advocates claim airlines benefit from these poorly-disclosed fees -- indeed, that the airline industry has built a business model on deception. That could change when the government's new fee disclosure rules go into effect later this summer. The Transportation Department has also promised additional regulations on fares in 2012.

The US Separtment of Transportation announced expanded Airline Passenger Protections regarding:

- Lost Bags & Bag Fees
- Full Disclosure of Additional Fees
- Bumping
- Tarmac Delays

The rules were finalized in April based on protections issued Dec 2009. I was not aware of a couple of the items listed in this article. For one.........

It says it will require airlines to allow reservations to be held at the quoted fare without payment, or cancelled without penalty, for at least 24 hours after the reservation is made, if the reservation is made one week or more prior to a flight’s departure date. I had not heard of that rule before.

Press Release | U.S. Department of Transportation

[thepiranha]

The airlines collected 3.4 billion, that's $3,400,000,000 in baggage fees last year. That's a lot of moolah! I agree with Kyshel that it's better that they charge extra for excess baggage than add it to the ticket price. I travel light and I shouldn't have to subsidize someone else's baggage costs. Excess baggage requires requires more staff for loading and unloading and more weight means more fuel. Someone has to absorb those costs.