For Airlines, Fees Become Lifelines

My future depends on the need for airlines to still be around no matter what kinds of costs there are and the article For Airlines, Fees Become Lifelines by Esme E. Deprez justifies why they charge for what they do.


After graduation, I plan to join my fiance in Guam. He is in the Navy and plans on being a lifer. Being with someone in the military will put a damper on many things. One of those being the amount of travel we'll be able to do. A lot of people when they settle down usually settle somewhere close to where they grew up and are therefore near their family members. Thus, travel is much easier and cheaper for them. Traveling around in the military though will take you sometimes very far away from anyone in your family. Making time and money to try to visit them is going to be an even bigger hassle now with the airlines. Not only are booking flights sometimes pricey, but with all those charges they tack on it is getting even more expensive.


Even though those extra prices are an inconvenience, people are going to have to understand just why the airlines have to do that. The price of just an airline ticket alone isn't helping them to fit all the costs of the airline. They must come up with some other form or revenue. Ancillary revenues - products and services they can unbundle from the fare and sell a la carte - are a great way to do that. If airlines didn't start to do this, at least one major airline would've fallen considering the recession we are in right now and there are not as many people traveling, especially by airplane. Most of the passengers on airplanes will have at least one suitcase to check in so that is an easy and for sure way the airlines know they can help with the revenue. That by it's self makes sense due to the rest of the economy especially with fuel prices. The heavier all the luggage is, the more fuel it will use. The extra costs from checked luggage will help pay for those fuel costs better and in turn maybe make people pack lighter and not even check any luggage thus saving them money but also saving an airplane from using more fuel which is much better for the environment.

There are some premium airlines that do not charge miscellaneous fees because they don't want tread in dangerous waters by nickel and diming their passengers when they pay a higher fare already for the service they expect on that particular airline. While others are taking note of what passengers like on particular flights at particular times of the day and recording that information and analyzing it like a grocery store would with their information they get from swiping your "preferred card". The airlines then can come up with something that is an add on that would compliment what particular passengers like thus producing a happy traveler and better revenues. For example, if a passenger likes to have a glass of wine on an evening flight, the airlines may ask if they'd like a cheese and fruit plate to go with it at an additional charge.

Airlines are always thinking of new ways they can increase their revenue. With an à la carte approach, fliers will no longer be subsidizing products or services they don't use. A passenger could book a flight that has a designated meal on it and if he didn't want it, then he'd be paying for it anyways. This will ultimately let passengers customize their flying experience to their liking. Airlines think of every aspect of your typical flight and try to design revenue making ideas. But the problem they face is knowing what is too much. Are we going to start seeing airlines making you swipe your credit card at the door if you have to use the bathroom while in flight? Most likely not any time soon. They have to think realistically with the economy and the people's tolerance level of how much is too much. But still be prepared to see more and more revenue making ideas popping up with many airlines.