With all of this talk about airlines, such as Spirit Air, beginning to charge extra fees not only for checked bags but also for carry on bags, people are clearly dismayed. When it's bundled into the cost of our tickets, we don't know how much we're paying for baggage because it's not itemized (so we complain about high ticket costs). When it's unbundled and we're presumably paying a lower fare to fly, we balk at the incremental fees.
Yet here is where these policies create real value for the travelers and not for the airline: the power of choice. At $45 for a carry-on and, on average, $20 for a checked bag, I might be better off sending my luggage via FedEx, no? The four-day, ground, door-to-door delivery option for 30 lb. package traveling from Rochester to Beverly Hills is a mere $36.75. Yep. I'll pay a lower price to fly and I don't have to carry a thing. Sure I have to pack earlier than usual; I can handle that.
I'm not sure if this is a classic example of some idiot in revenue management looking at growing his airline's profit margins (short-term) without looking at the bigger picture (i.e., customer dissatisfaction and/or lost revenue to a carrier that's not directly in his competitive set); however, if I worked in marketing at FedEx, I would leverage this opportunity to market the heck out of my service and cue up The Band.
And . . . you put the load right on me.
2 comments:
Wouldn't it make a trip more pleasant to Fed-Ex the kids ahead of time too? No whining, fussing or "I'm Bored".
Especially on a car trip when they're beating each other up in the back seat. Are we almost there? Are we there yet?
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