Officials at American Airlines this weekend announced that the airline is planning to move to an “unbundled” fare system in 2009 — even as Europe is about to implement a new rule requiring airlines to quote an all-inclusive price.
As with most airline moves this year, this one is likely to cost most travelers money, as buying a ticket will become more and more like buying a car — you might see a base price, but the final price you pay will be more, likely much more.
Airlines justify these additional fees as a necessary cost of business. Daniel Garton, American Airlines’ executive vice president of marketing, says airlines can’t — or won’t — raise ticket prices.
We as an industry have opted to not just raise (ticket) prices but to raise prices and change the fee structure. Without fees to offset rising costs, you’re not going to be talking about fees — you’re going to be talking about lost service … being able to have a flight to San Diego.
Garton isn’t even talking about fuel prices, but about a fundamental change in the ways airlines do business.
In reality, of course, airlines could simply raise their fares. And while some travelers may save money if they don’t care about beverages, blankets, seat assignments, checking luggage and frequent flier mileage, the fact is that most people will end up paying more. Limits on liquids mean passengers can’t bring drinks from home, and limits on luggage will make it harder even to bring snacks, let alone blankets.
And there’s one other thing. Fees are a pure profit center for the airlines that they don’t have to share with corporations, tour operators or travel agents. So they probably aren’t going away.
On the other hand, Southwest Airlines, once the industry’s acknowledged no-frills airline, is cheerfully trumpeting their status as the “no-fee” airline, with a list of what they don’t charge for on the front page of their site. As the industry enters the slow fall and winter season, no doubt competitors will be watching.
If other airlines lose business because passenger traffic moves to Southwest .. well, then “unbundling” might just not become a necessary evil for air travel.
