Comments on: Delta, Continental raise bag fees, will Southwest and JetBlue pack it in?

By: Dennis Schaal

Dennis Schaal — Thu, 14 Jan 2010 00:45:46 +0000

Yes, I’m rooting for Southwest and JetBlue to be steadfast and to refrain from the first bag fees. As I’ve pointed out elsewhere, though, Southwest has upped plenty of fees for other services. And, JetBlue’s transition to Sabre as a host, and they hinted as much, makes me think that lots of changes re. ancillary revenues are in store.
Yes, Stephen, the TSA rules are working in the airlines’ favor on bag fees. Maybe they should do the patriotic thing, under the current security circumstances, and roll them back. I’m obviously a dreamer.

By: RobertKCole

RobertKCole — Wed, 13 Jan 2010 21:57:57 +0000

Glenn – loved the “upstart mentality” line… I continually find it amazing that I engage in discussions where clients have lost focus on product experience & service delivery due to sudden infatuation with a new technologies or social media channels.

The key is to efficiently provide a quality consumer experience at a reasonable price. Consumers want simplicity, transparency and authenticity in their brand relationships. Southwest built its brand on those pillars and I can only hope that Southwest will continue to differentiate itself from the competition by maintaining its unique selling proposition.

By: Stephen Joyce

Stephen Joyce — Wed, 13 Jan 2010 19:53:32 +0000

It’s not very often the TSA rules work in favor of airline ancillary revenues. No more carry-on, oh and by the way, we’re charging you more to check your bag. My predictions for 2010:

1. Airline customer satisfaction will show a marked decline this year as customers feel nickle and dimed to death for things they cannot control.
2. Airlines will see an increase in ancillary revenues directly related to increased baggage fees.

I suppose in hindsight these predictions are not really predictions but more like stating the obvious.

By: Glenn Gruber

Glenn Gruber — Wed, 13 Jan 2010 18:50:48 +0000

I completely agree. Besides the assuredly public relations backlash/ridicule — particularly in social media circles — raising fares or fees has not been the M.O. for the LCC. The mantra has always been a Wal-Mart-like focus on improving operational efficiencies and reducing costs.

And regarding the loyalty-factor that Robert alluded to, Southwest has built that loyalty on the back of the experience they provide travelers, not just low prices. Sort of an upstart-mentality. Following the pack in raising fees that infuriate travelers (either because they’ve been made to pay them or because of the impact on boarding and comfort because everybody is bringing their luggage on the plane) could change travelers perceptions of the airlines. It would be easy to argue the economics of the situation, but it would ring hollow to loyal travelers and seem as if the company is losing the very soul that attracted them to the carrier for so long.

By: RobertKCole

RobertKCole — Wed, 13 Jan 2010 07:44:32 +0000

Despite the intense pressure southwest must be feeling from Wall Street, it would be a mistake for Southwest to back off on the bag fee issue – especially because of the significant media positioning.

Example – My 81 year-old mother-in-law knows the Southwest policy and insisted on flying on them from MCO-MKE even though she was not even checking a bag… She refused to consider comparable non-stops available on Midwest and AirTran unless they were priced well below Southwest.

That degree of loyalty is remarkable – especially since she had never flown Southwest previously. I think Southwest has struck a chord with the traveling public that is tired of being on the losing end of the “heads – we win, tails – you lose” relationship with the airlines.

By: uberVU - social comments

uberVU - social comments — Wed, 13 Jan 2010 07:12:52 +0000

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