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Thursday
Apr052012

Pay to Carry-On?

Now that Allegiant Air is the second U.S. based carrier to charge for carry-on bags—at least those that go in the overhead compartments—the talk on the internet is whether or not this will be a trend. Can we expect to see this on all airilines?

My initial response: I doubt it.

Let’s look at what’s been going on so far. Two airlines, Spirit and Allegiant Air, charge for carry-ons. Both of these airlines cater to the leisure traveler and especially those who want to buy cheap tickets.

The major airlines, the legacy carriers, rely much more on business customers, those who are willing to fly at the last minute and pay for the privilege. They want to carry on because they don’t want to waste valuable work time at the baggage carousel.  They don’t want to be told they must pay to carry on their bags. Do this and these same customers may jump to another airline.

Most airlines will tell you, customer loyalty can mean the difference between profit and bankruptcy. So if not charging for carry-on bags, or even looking the other way if a carry-on is slightly too big, keeps their most loyal customers loyal, that’s the practice they’ll continue to practice under. Discount airlines, on the other hand, know their customers are buying mostly due to low ticket prices, will keep their prices low and add on as many additional fees as possible.

Reader Comments (6)

I've been saying it for years; I really, really hope this catches on.
April 5, 2012 | Unregistered CommenterAndy
I think the legacy airlines will be watching this very closely. If my memory is correct, Allegiant and Spirit were the first airlines to charge for checked luggage as well, and well, we know what happened there. If Allegiant starts seeing a substantial increase in revenue (Spirit's bottom line seems to be pretty well), I can see the legacy carriers experimenting with charging for carry ons - by charging for carry ons on certain types of tickets (those usually purchased by casual travelers) or by stating carry ons are free if you have a certain membership status, so as not offend frequent fliers.

Alternatively I can see them either imposing and enforcing weight limits ala some of the European and Asian airlines or by limiting carry ons to one, period with certain size limitations, but not quite as draconian as Allegiant.

I think Allegiant had been saying for at least six months they were considering charging for carry ons.

As a final thought, we'll see what happens to the price of oil and jet fuel - that could give the legacy carriers an excuse.
April 6, 2012 | Unregistered CommenterKF
As a related item, Allegiant has just announced that they will offer once a week direct service from our Central California location to Honolulu, on Sunday mornings, with a return on Saturday, for a round trip fair of $350, versus a competing $866, though obviously the average Allegiant passenger will also be paying each way baggage and seat selection feels, and an initial booking fee, which probably will raise the price to around $450. As well this is an introductory price, no advisory as to what the eventual pricing structure might be. Of course, for those of us who prefer to vacation in Maui, Kauai or on Kona, the advantage might be minimal, particularly once a pair of inter-island flights are added.
April 10, 2012 | Unregistered CommenterAlan B
It appears that for the average passenger, who as usual pre-selects a seat, and brings one bag, given all the extra fees, that the true cost of that introductory Allegiant ticket is more like $570, NOT $350! See:

http://www.allegiantair.com/aaFeesForOurServices.php

It can be up to $60 just to pre-select a seat, $20 to pre-pay fees for one bag, $20 just to use the website, more to reserve by phone, etc. Basically, even at their introductory rate, a Central Valley traveler who wants to get to Kona, Maui, or Kaui would be better off with a standard carrier.
April 10, 2012 | Unregistered CommenterAlan B
I don't know, this might actually be used by more mainstream carriers. Did we think they would charge for checked bags, 5 years ago?
April 10, 2012 | Unregistered Commentertfar

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