Time-dependent pricing of ancillaries
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Time-dependent pricing of ancillaries
We're all used to the idea of the price of an air ticket changing over time, with the price generally increasing as it gets nearer to departure date.
On many airlines, baggage in the hold, or even large cabin baggage, incurs a fee. The nearer one gets to departure date, the better a passenger knows how much baggage they want to take.
Importantly, the price of checked-in baggage is typically the same, whether booked 6 months in advance, or a couple of days in advance - the passenger has no need to commit in advance. So far it's typically only pax who buy baggage bookings at the bag drop desk or gate who pay more. It seems airlines are not making effective use of this revenue stream. Why not instead have a variable-price system for baggage ? If pax commit 6 months ahead, make checked baggage cheaper, and increase the price nearer departure date, as baggage hold bookings fill up. Checked baggage fees are typically nonrefundable (barring flight cancellation), and airlines, particularly LCCs, can then monetise a passenger's deferral of baggage-decision. It can be sold as a way for pax to save money by helping the airline plan better... and it encourages pax to commit to giving their nonrefundable cash to an airline - pax paying baggage fees for baggage they don't actually take is highly profitable !
Do any airlines currently implement this idea ?
As an extension... perhaps this variable price idea could cover other ancillaries, like large cabin baggage, seat reservations, meals booked in advance, flight change fees, etc...
On many airlines, baggage in the hold, or even large cabin baggage, incurs a fee. The nearer one gets to departure date, the better a passenger knows how much baggage they want to take.
Importantly, the price of checked-in baggage is typically the same, whether booked 6 months in advance, or a couple of days in advance - the passenger has no need to commit in advance. So far it's typically only pax who buy baggage bookings at the bag drop desk or gate who pay more. It seems airlines are not making effective use of this revenue stream. Why not instead have a variable-price system for baggage ? If pax commit 6 months ahead, make checked baggage cheaper, and increase the price nearer departure date, as baggage hold bookings fill up. Checked baggage fees are typically nonrefundable (barring flight cancellation), and airlines, particularly LCCs, can then monetise a passenger's deferral of baggage-decision. It can be sold as a way for pax to save money by helping the airline plan better... and it encourages pax to commit to giving their nonrefundable cash to an airline - pax paying baggage fees for baggage they don't actually take is highly profitable !
Do any airlines currently implement this idea ?
As an extension... perhaps this variable price idea could cover other ancillaries, like large cabin baggage, seat reservations, meals booked in advance, flight change fees, etc...
Last edited by davidjohnson6; 9th Nov 2022 at 10:09.
N4790P
Ticketing is too complex now. Why add another level of complexity and provide yet another reason to inflate prices as most certainly they won't decrease them!
Isn't checked baggage ordered after the initial booking more expensive at some low-cost airlines? Plus, I seem to remember they sell unused food on the final flights of a day cheaper.
The nearer one gets to departure date, the better a passenger knows how much baggage they want to take.
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Wizz Air ancillaries pricing is dynamic - all seats, luggage, flexibility etc supplements are route and time dependent.Time dependency is usually a lot less than route dependency, but still exists for many products. Luggage usually a bit cheaper just before departure. Route dependency is arbitrary, you can pay more for seats or luggage on some short hops.
Many LCCs at the last minute offer free cabin bags to be checked in, in order to reduce the enormous amount of bags in the cabin- which otherwise lead to delays in departure.
Imagine paying inflated checked bag prices at the check in to find at the gate they are loading free cabin bags into the hold.
There is enough complexity in ticket prices as it is, without adding further layers IMHO.
I still prefer a bundled price (a la Logan, Eastern etc) where bags are all included & reduce the ridiculous amount of bags in the cabin. I miss the 707 days when the overhead was a place to put your coat & hat.
Imagine paying inflated checked bag prices at the check in to find at the gate they are loading free cabin bags into the hold.
There is enough complexity in ticket prices as it is, without adding further layers IMHO.
I still prefer a bundled price (a la Logan, Eastern etc) where bags are all included & reduce the ridiculous amount of bags in the cabin. I miss the 707 days when the overhead was a place to put your coat & hat.
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It's quite common, Wizzair certainly do it and I'm fairly sure even some of the 'majors' do, too.
There's a certain amount of game theory here, because many airlines will offer to check bags totally for free once the aircraft is ready for boarding; I see this on BA all the time, and to a lesser extent Easyjet.
My favourite airline for dealing with his is Air Nostrum (Iberia) where you can put the bag on a trolley next to the boparding steps and retrieve it exactly the same way on arrival. This avoids any of the drawbacks of checked baggage while preventing the small cabin being rammed full. This is currently free but I suspect this could soon be monetised (I would pay!).
Flybe (of course!) on one occasion promised a similar service at LCY but always forgot to do the airside delivery bit at the other end; handful of annoyed, inconvenienced pax.
The bundles are also a bit of game theory; a family member using a mostly-turboprop airline always buys the semi-flexible bundles that include fee-free flight change and seat assignments etc. For the best part of 10 years she has never once actually changed her flight, she rarely uses the included checked bag and her seats are frequently reassigned on boarding anyway for weight and balance. The airline must love her!
There's a certain amount of game theory here, because many airlines will offer to check bags totally for free once the aircraft is ready for boarding; I see this on BA all the time, and to a lesser extent Easyjet.
My favourite airline for dealing with his is Air Nostrum (Iberia) where you can put the bag on a trolley next to the boparding steps and retrieve it exactly the same way on arrival. This avoids any of the drawbacks of checked baggage while preventing the small cabin being rammed full. This is currently free but I suspect this could soon be monetised (I would pay!).
Flybe (of course!) on one occasion promised a similar service at LCY but always forgot to do the airside delivery bit at the other end; handful of annoyed, inconvenienced pax.
The bundles are also a bit of game theory; a family member using a mostly-turboprop airline always buys the semi-flexible bundles that include fee-free flight change and seat assignments etc. For the best part of 10 years she has never once actually changed her flight, she rarely uses the included checked bag and her seats are frequently reassigned on boarding anyway for weight and balance. The airline must love her!
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Many LCCs at the last minute offer free cabin bags to be checked in, in order to reduce the enormous amount of bags in the cabin- which otherwise lead to delays in departure.
Imagine paying inflated checked bag prices at the check in to find at the gate they are loading free cabin bags into the hold.
There is enough complexity in ticket prices as it is, without adding further layers IMHO.
I still prefer a bundled price (a la Logan, Eastern etc) where bags are all included & reduce the ridiculous amount of bags in the cabin. I miss the 707 days when the overhead was a place to put your coat & hat.
Imagine paying inflated checked bag prices at the check in to find at the gate they are loading free cabin bags into the hold.
There is enough complexity in ticket prices as it is, without adding further layers IMHO.
I still prefer a bundled price (a la Logan, Eastern etc) where bags are all included & reduce the ridiculous amount of bags in the cabin. I miss the 707 days when the overhead was a place to put your coat & hat.
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Many LCCs at the last minute offer free cabin bags to be checked in, in order to reduce the enormous amount of bags in the cabin- which otherwise lead to delays in departure.
Imagine paying inflated checked bag prices at the check in to find at the gate they are loading free cabin bags into the hold.
There is enough complexity in ticket prices as it is, without adding further layers IMHO.
I still prefer a bundled price (a la Logan, Eastern etc) where bags are all included & reduce the ridiculous amount of bags in the cabin. I miss the 707 days when the overhead was a place to put your coat & hat.
Imagine paying inflated checked bag prices at the check in to find at the gate they are loading free cabin bags into the hold.
There is enough complexity in ticket prices as it is, without adding further layers IMHO.
I still prefer a bundled price (a la Logan, Eastern etc) where bags are all included & reduce the ridiculous amount of bags in the cabin. I miss the 707 days when the overhead was a place to put your coat & hat.
In 2019 I flew from SEN to Menorca on easyjet. I checked in my suitcase and asked them to take my cabin bag as well. They told me there was a £5 charge for this, so I declined and kept the bag with me.
At the gate, towards the back of the queue a member of staff - the same lady who I checked in with - advised me that my cabin bag would need to go in the hold. I said, I don’t mind but you wanted £5 off me earlier to do it. Oh no, sir she replied, I would never do such a thing. We both laughed.
