Just when you thought the airline “fee frenzy” couldn’t get any more intense, some carriers seem to be taking a step back from the standard nickel-and-diming tactics and instead are offering free perks to fliers.
One airline is offering complimentary wi-fi, and others have campaigned to make it clear that they don’t charge for certain common amenities, unlike their competitors.
But do these “freebies” really mean that airlines care about their customers’ wallets? Could it truly be a trend prompted by backlash from frustrated travelers? Or are these just calculated publicity ploys?
Only days after several airlines announced that they’d be adding a $10 charge for travel during certain peak days around the holidays, Virgin America has decided to offer free wireless Internet access to passengers for a short time.
The airline industry seems to have recently intensified its love affair with the fee-based business model. New fees are constantly being piled on top of existing ones, to the tune of over $10 billion in revenues worldwide in 2008, and possibly twice that in 2009.
In addition to the $10 holiday surcharge levied by Delta, U.S. Airways, Northwest, and American, many other U.S. and foreign carriers also appear to be coming up with creative new fees to help pad their bottom lines.
At least half a dozen airlines now charge baggage fees on international flights, which were previously a no-go area for the bean counters.
Learn more with Baggage Fees Creeping Onto International Flights. Or find out how Extra Fees Provide a Big Boost to Some Airlines’ Profits.
Just a few days ago British Airways decided to start charging a fee to get a seat assignment more than 24 hours before departure.
If you want to sit in an exit row, some airlines will now make you pay up. Want to pay your baggage fee at the airport instead of prepaying in advance online? At least one carrier will charge you $5 for that.
But there seems to be a countervailing trend going on in some sectors at the same time as fee overdrive is heating up in other parts of the industry.
Virgin America announced yesterday that passengers will be able to surf the Web for free between November 10 and January 15 on flights between 10 major U.S. cities. The service normally costs between $7.95 and $12.95, depending on the length of the flight and the type of device you’re using.
And at least two major airlines have recently rolled out advertising campaigns to remind potential customers of the things they DON’T charge for. Continental’s emphasizes that it does not charge for meals on domestic flights, and Southwest won’t let you forget that it steadfastly refuses to charge for the first two bags.
Though the Virgin Wi-Fi promotion seems clearly intended to give fliers a free taste of in-flight Internet in the hopes that they’ll want to pay for it later, the company ethos seems to run contrary to the pile-em-high attitude of other carriers.
Sir Richard Branson recently warned the industry that adding fees on top of ticket prices is not a good idea, and risks alienating travelers. Though as the chairman of Virgin Atlantic he is not directly involved with the operations of Virgin America, his comments seemed to square with the spirit of the free Wi-Fi promotion.
Learn more about the airline’s features and plan with: Virgin America: Short-Haul Flights Made for Hipsters?
Southwest, on the other hand, may brag about not charging fees for the first two bags, but its record on other fees is not so good. It recently allowed pets on its planes and immediately started charging $150 round-trip for the privilege.
Furthermore, the airline has some as-yet-unspecified plans to change its Rapid Rewards frequent-flier program, a move that may involve charging customers for … something. CEO Gary Kelly has so far been tight-lipped about the impending change, but made some interesting comments about additional “ancillary revenue opportunities” that seem to reveal his true feelings about a la carte fees.
For its part, Continental may not charge for meals, but it will hit you with a $25 fee to book a frequent-flier ticket over the phone, and at least $125 to fly with your pet, among other fees.
Overall, it seems that the “freebies” offered—or advertised—by some airlines are just a drop in the bucket compared to the tsunami of fees, but for now these small concessions may help to make the flying public feel that they’re not getting such a raw deal after all.
By Karen Elowitt for PeterGreenberg.com.
Related links: CNN, Los Angeles Times, Chicago Tribune, New York Times, USA Today, Dallas Morning News
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