How can airlines make things worse? Let me count the ways…
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Dutifully playing follow-the-leader, and jumping into the proverbial meat-grinder, airlines are competing to make a bad scene worse. They’re piling on: adding fees, reducing benefits, and devaluing frequent flyer miles even more. And that’s just today. Yeah, it was a bad day.
Round one: Luggage fees
Barely wasting any time after American Airlines imposed a $15 fee for the first checked bag, United has followed suit. The new fee goes into effect “if you are traveling on or after August 18, 2008 on an Economy ticket or Economy award ticket purchased on or after June 13, 2008.” Yes, there are exceptions for elite frequent flyers (notably for all Star Alliance elites, and not just United elites) and premium-cabin passengers. Full details here.
Oh, and US Airways matched the $15 fee today, too. Who’s next?
Round two: Free stuff isn’t free anymore fee
American introduced a $5 fee for booking a free ticket online. Purely spiteful, as Gary Leff argued when this first arose. Online distribution was intended to lower costs, but now it’s just a profit center.
But American’s $5 fee seems downright generous compared to US Airways’ announcement today. There’s a double-whammy of “award ticketing fees” and “award processing fees.” The ticketing fees consist of $30 surcharge for U.S/Canada tickets, and $40 for international itineraries. But then there’s the “processing fee”: $25 continental U.S./Alaska/Canada, $35 Latin America/Caribbean, $50 Hawaii/international.
Extortionary.
Round three: Free trips will cost more miles
American jacked up the number of miles necessary for many free tickets and upgrades, thereby making it harder to reach your award goals. No surprise, alas, given the oversupply of miles chasing a shortage of flights in an age of increasing airfares. But still annoying.
So far, no other followers… yet. Give it a day or two, and it won’t be a surprise if others devalue your miles the same way.
Round four: We will kick elites like dogs, and you’ll like it
US Airways will piss off thousands of its elite frequent flyers with its new “enhancement” to the Dividend Miles program: “US Airways is also eliminating its bonus miles program for Preferred status Dividend Miles members. Preferred members currently receive mileage bonuses based on their status level. The Preferred bonus program will be discontinued for tickets purchased on/after Aug. 6, 2008.” Ouch. So, elites who previously accumulated miles more quickly can now kiss that benefit goodbye. How many elites will be kissing US Airways goodbye? (Hat tip to Benet Wilson for pointing this nugget out to me first!)
Rounds five through infinity: Everything else.
Beyond that, the fees just keep on coming. US Airways is adding fees for all soft drinks, including water. Excuse me, that’s “a new in-flight beverage purchase program.” Ooh, a program! Groan. They’re raising the price of booze, too, to a whopping $7. United is increasing various ticketing fees, across the board, too many to name. And US Airways is shutting clubs and arrival lounges. Satire just doesn’t cut it anymore.
Is there a silver lining in here anywhere? I can’t seem to find it.
Related:
- Copycat: US Airways mimics United, starts charging for second checked bag
- Death by a thousand cuts: US Airways edition
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June 12th, 2008 at 10:58 pm |
Prediction: the attempt to charge for water — water! — will be forbidden by the FAA or Congress.
June 13th, 2008 at 2:10 am |
The silver lining is the pockets of the railroad companies as people stay away from air travel in droves. With the infusion of money we’ll see better and faster trains, and along with that hopefully better rail networks.
There’s an impending crisis on freight lines as traffic increases and accordingly, we’ll be seeing new rail lines, which should spill over into the passenger sector. Here’s to an American Shinkansen.
June 13th, 2008 at 8:22 am |
So now I can’t bring my water from home AND I have to pay for beverages on a flight? It’s a great business opportunity during long delays on the tarmac…..
June 13th, 2008 at 8:54 am |
[…] And the Luggage Fee (or as one Airline Analyst — no relation — put it: "clean underwear" fee) won’t be the end of it: How can airlines make things worse? Let me count the ways… ? Upgrade: Travel Better […]
June 13th, 2008 at 11:08 am |
>How many elites will be kissing US Airways
>goodbye?
None, as other airlines will match it.
Sorry. Sad but true.
I am Chairman-level with USAir, but I am not sure it even makes sense to go “status-beg” at United as they will likely soon match it….
June 13th, 2008 at 5:21 pm |
Dear U:TB, after rummaging around on the US website I think I’ve figured out the difference between an “award ticketing fee” and an “award processing fee”:
- the “processing fee” applies to all award tix
- the badly named “ticketing fee” only applies to award tix booked over the phone
Too bad they failed to explain this more clearly in the announcement. (Also, you have to wonder if they’ll continue to waive the “ticketing”/telephone fee for tix, such as partner redemptions, that can’t ever be booked online.)
June 13th, 2008 at 6:48 pm |
[…] puedes suscribirte para que te llegue por correo electronico o por feed RSS . Gracias por visitarme!How can airlines make things worse? Let me count the ways…: interesante entrada de Mark Ashley en su blog Upgrade: Travel Better, sobre varias decisiones de […]
June 13th, 2008 at 7:24 pm |
Thanks for clearing up the “ticketing” vs. “processing” fee for awards, Mark!
And US waives the “ticketing” fee if you can’t book the itinerary over their website? I had no idea (I’m not a Dividend Miles member). That’s actually sensible for once, and goes against the grain of the rest of the industry, which tends to charge for all tickets booked over the phone, even if you can’t do it online.
June 13th, 2008 at 7:25 pm |
Other Mark: Do you really think the FAA will get involved in this? Other airlines are already charging fees for water (Spirit, the defunct Skybus…) so it’s nothing new.
June 13th, 2008 at 7:28 pm |
Anonymous Coward: First off, nice handle.
But to your point, you’re right, it’s likely that others will follow suit. Good point. Except perhaps Southwest, though their elite program doesn’t offer upgrades or an international network. I trust you’d vote for the “stay the course” option in the poll posted today?
http://www.upgradetravelbetter.com/2008/06/13/poll-does-loyalty-matter-any-more/
June 14th, 2008 at 7:12 am |
US waives the “ticketing” fee if you can’t book the itinerary over their website?
That has absolutely been their practice in recent years. I can’t recall how I knew this — years of reading FlyerTalk, perhaps — but I put it to good advantage within the past year (booking 4 award tix on UA w/no fees).
June 16th, 2008 at 2:06 pm |
[…] Link: Upgrade Travel Better […]
June 16th, 2008 at 4:02 pm |
Come on, haven’t you all overlooked the obvious Round Six: Pay Toilets Onboard the Planes!
June 24th, 2008 at 8:52 am |
[…] | upgradetravelbetter Más noticias sobre: Articulos de viaje, Noticias, Transportes Tags: Aerolineas, Noticias […]
August 12th, 2008 at 2:44 pm |
Dear Anonymous Coward, I will stick with Southwest then, your policies regarding baggage are ridiculous. Furthermore the Seat Fee Scam that some of you may have heard about further infuriates me. We booked a vaca with US Airways online that did not allow us to instantly book seats. 6 couples we are friends with each booked their flights. Each pair got assigned center seats away from their respective partner, and now to change our seats, even in the rows in the back of the plane is an extra $5-$15 per seat! YES, I will no longer fly US Air.