Saturday, June 21, 2008
United - Making Travel More Difficult.
Yesterday, United dropped a bomb and brought back fare restrictions that most airlines got rid of decades ago for domestic travel, the minimum stay. It used to be, and for international travel still is, that the cheapest round trip ticket would require a minimum stay of a day or two or sometimes a whole weekend. However, in the fight for domestic business travel, most airlines removed these restrictions a long time ago.
United appears to be among the first to bring them back, in the hope of domestic business travel becoming more profitable for the airline. Will it work? Good question. Given the climate of record high fuel prices, it's an understandable risk as every airline seems to be racing to be the first to bring back fee x or fee y. The problem is that there are other airlines, like JetBlue and Southwest which don't seem too eager to reintroduce all the fees. If this kind of rule isn't matched by more airlines that cater to business travelers, I think we'll either see United drop the rule before it gets implemented or many businesses shift to other airlines in a relatively short time.
It should be noticed that United raised pricing, again on its lowest price tickets - an increase of between 1 and 90 dollars each way as well.
United appears to be among the first to bring them back, in the hope of domestic business travel becoming more profitable for the airline. Will it work? Good question. Given the climate of record high fuel prices, it's an understandable risk as every airline seems to be racing to be the first to bring back fee x or fee y. The problem is that there are other airlines, like JetBlue and Southwest which don't seem too eager to reintroduce all the fees. If this kind of rule isn't matched by more airlines that cater to business travelers, I think we'll either see United drop the rule before it gets implemented or many businesses shift to other airlines in a relatively short time.
It should be noticed that United raised pricing, again on its lowest price tickets - an increase of between 1 and 90 dollars each way as well.
Wednesday, February 27, 2008
US Airways: Devaluing Miles, Adding Fees
US Airways has given you another couple reasons to fly with someone else. Like United Airlines did earlier this month, the Phoenix based carrier is adding a fee of $25 to check a second bag on their flights. Unlike United, however, no consideration to the consumer was ever provided. Also, they've recently announced a big downgrade to their frequent flier program, by cutting the miles earned on shorthaul flights.
With United, if you paid the highest class of ticket, you can check a second bag for free. Elite frequent fliers also are exempt from the baggage fee and the new baggage policy only applies to domestic flights. Although this is a clear case of wanting to maximize revenue based on higher fuel costs, the conditions of the fee seems reasonable compared to how US Airways is applying it.
With US, you will pay the same fee - regardless of the ticket price. International flights? You pay the fee. Elite and first class passengers are exempt, but given the recent frequent flier enhancement on earning miles, it is getting a lot harder for road warriors to acheive that elite status by eliminating the 500 mile minimum award for flying with them. Cranky Flier has good insight on both this change and the new baggage fee.
Will other airlines follow suit? It's possible, but probably with some more customer friendly provisions attached. Given its recent enhancements, and poor baggage handling history, US Airways is quickly becoming an airline to avoid, providing Ultra Low Cost airline service at legacy prices.
With United, if you paid the highest class of ticket, you can check a second bag for free. Elite frequent fliers also are exempt from the baggage fee and the new baggage policy only applies to domestic flights. Although this is a clear case of wanting to maximize revenue based on higher fuel costs, the conditions of the fee seems reasonable compared to how US Airways is applying it.
With US, you will pay the same fee - regardless of the ticket price. International flights? You pay the fee. Elite and first class passengers are exempt, but given the recent frequent flier enhancement on earning miles, it is getting a lot harder for road warriors to acheive that elite status by eliminating the 500 mile minimum award for flying with them. Cranky Flier has good insight on both this change and the new baggage fee.
Will other airlines follow suit? It's possible, but probably with some more customer friendly provisions attached. Given its recent enhancements, and poor baggage handling history, US Airways is quickly becoming an airline to avoid, providing Ultra Low Cost airline service at legacy prices.
Labels: baggage, fees, frequent flier miles, travel, united, us airways
Monday, February 04, 2008
United Enhances Baggage Service with New Fee
United Airlines announced today its newest customer service initiative. Charging passengers who bring a second bag. It's long been accepted practice for most airlines to accept two bags to place down below in the checked luggage area. United, faced with a competitive environment and higher fuel costs are looking to make that money up somewhere.
First they tried to impose a $25 fuel surcharge per flight segment. With nobody matching, that fee was quietly withdrawn a few days later. Today, they've announced that same fee returning, but only for customers who purchase a discounted fare and check a second bag. This will, by United's own account, affect one quarter of passengers on domestic flights. It's generally assumed that International flights will be unaffected. Also frequent fliers with status will be exempt as well.
They aren't the only carrier with recent changes in baggage. Southwest made their policy for extra baggage more in line with most other US carriers, now only accepting two bags without an extra fee. United's step further gets them just one level above Skybus and Spirit who charge for all baggage.
It starts to make me wonder if there's a good reason for flying the "majors" anymore. Outside of having a larger network, they generally have higher prices, and the same service.
First they tried to impose a $25 fuel surcharge per flight segment. With nobody matching, that fee was quietly withdrawn a few days later. Today, they've announced that same fee returning, but only for customers who purchase a discounted fare and check a second bag. This will, by United's own account, affect one quarter of passengers on domestic flights. It's generally assumed that International flights will be unaffected. Also frequent fliers with status will be exempt as well.
They aren't the only carrier with recent changes in baggage. Southwest made their policy for extra baggage more in line with most other US carriers, now only accepting two bags without an extra fee. United's step further gets them just one level above Skybus and Spirit who charge for all baggage.
It starts to make me wonder if there's a good reason for flying the "majors" anymore. Outside of having a larger network, they generally have higher prices, and the same service.
