The Huffington Post article linked above notes that, so far, the majors have no plans to start charging for things like carry-on bags (placed in the overhead bin) sodas and bottled water, as more and more fliers choose to move their business to the fee-heavy carriers, and their bottom line reflects the increased revenue positively, the days of the bundled ticketing model will be coming to an end.
Bundled ticketing will end despite the hue and cry from the fliers that it shouldn't, that somehow a rock-bottom ticket price should also include premium level service of the type that people experienced in the "good old days". Wishful thinking of this type ignores two key points: 1.) In the "good old days" airfare was cost prohibitive to all but the wealthy. 2.) Passengers today have revealed themselves to be very price sensitive.
For all of the wailing and gnashing of teeth regarding Spirit Airlines (much deserved, it is a terrible airline) there are a surprisingly large number of people who fly with them religiously. These committed customers do not choose Spirit because they receive good service, or because of the amenities they offer, they do so because a Spirit ticket is, quite often, listed at around $100 less than comparative tickets from other airlines.
Don't believe me? Do a simple ITA Matrix search from any two airports Spirit services. As a sample fare I chose IAH to Orlando leaving July 9th (a Wednesday) returning July 14th (A Tuesday). These are two of the lowest cost days of travel within the week. The results?
Spirit is the winner on fares, but what about when it comes to adding in fees?
(for this example it's assumed that all fares were purchased equally. i.e. without the benefit of a branded card)
Spirit:
Fare: $275
Carry on bag fee: $21
Checked bag fee: $26 (assumes one checked bag per person.)
Seat Fee: $25 (The listed rate is $1-$50, I'm cutting it down the middle)
Refreshments: $3.00 (a bottle of water)
Total Spirit charge (per ticket): $350.00 per ticket
American:
Fare: $323
Checked bag fee: $25
Total American Charge: $348/Ticket
United:
Fare: $415
Checked bag fee: $25
Total United Charge: $440
Now, clearly, you can avoid some charges with American and United by purchasing your itinerary with their co-branded credit cards. How many casual travelers will do that however? It's also easy to say that Spirit and American are about the same so you should fly American. This discounts the fact that you have to make a connection with AA, while Spirit's flight is non-stop. If anything the most direct comparison is with United, and Spirit is a full $90.00 LESS than the airline that calls IAH it's hub.
Given these choices which do you think a family of four is going to select?
If you guessed Spirit, you're probably going to be correct.
And that's the problem with customer surveys which say that "85% of customers dislike paying airline fees". Of course they dislike it, but there's a very small additional cost that people are willing to pay to ignore those fees, select their own seat in steerage and sit in a seat that reclines ever so slightly.
In a previous post on United's financial worries I stated that SlimLine seats, as uncomfortable as they are, will be the future for all Coach seating. I also think, once the consumer votes with their pocket book, that unbundled fares will be the norm as well. Whether or not people complain they will (almost) always choose the option that offers the lowest cost and the fewest connections, this is doubly true if they have children.
We can complain and gripe as consumers about airline fees all we want, but until the airlines find a fee that results in significantly reduced ridership (I'm not even sure what that would be at this point) then we're going to find them here to stay.
