Ryanair to charge for baggage from March

[STN Ramp Rat]

appologies if this should be on the Airlines airports and routes forum


RYANAIR TO REVOLUTIONISE EUROPEAN AIR TRAVEL


FARES REDUCED BY 9% (£2.50 OR €3.50) FROM 16TH MARCH '06
WEB CHECK-IN TO ELIMINATE CHECK-IN AND AIRPORT QUEUES
LUGGAGE ALLOWANCES INCREASED FROM 25KGS TO 30KGS
PASSENGERS ONLY PAY FOR THE BAGGAGE SERVICE THEY USE
Ryanair, Europe’s largest low fares airline today (Wednesday, 25 th January 2006) announced details of its next revolution in European low fare air travel. From the 16th March, Ryanair will introduce a number of key service improvements for all passengers including (1) all Ryanair’s fares will be reduced by 9% (£2.50 or €3.50), (2) all passengers travelling with hand luggage and in possession of an EU passport will be able to check-in on the web at www.ryanair.com and by-pass all check-in and airport queues, (3) these passengers will also be given priority boarding which will also eliminate boarding gate queues as well, (4) for bookings after 16th March, Ryanair is increasing each passenger’s luggage allowance from the current 25kgs to 30kgs (comprising 10kgs carry-on and 20kgs checked-in luggage) which will substantially reduce excess baggage fees and finally (5) all passengers travelling with checked in luggage who book after 16th March will now pay a fee of £2.50 (€3.50) per bag, per flight if booked in advance on the website, or £5.00 (€7.00) per bag, per flight if presented unbooked at the airport.

As a result of these changes, those 25% of Ryanair’s passengers who presently travel with just hand luggage will avail of lower fares, will avoid the inconvenience of check-in or boarding gate queues and will no longer cross subsidise those passengers travelling with checked in luggage. A further 50% of Ryanair’s current traffic (who travel with just one checked in bag) will see no change in their cost of travel, as the £2.50 ticket price reduction will fund their £2.50 baggage fee if booked on the internet. These passengers will enjoy much shorter queues at check-in thanks to the large numbers of people who will now switch to web check-in, thereby reducing the airport check-in queues. Lastly those passengers who presently travel with more than one checked in bag will see the cost of their travel rise by the £2.50 (€3.50) per bag for their second and subsequent bags. These passengers will also enjoy shorter check-in queues, and will be encouraged to travel with less checked in luggage which would then make these changes cost neutral for them as well.

This 9% “across the board” reduction in Ryanair’s ticket prices from 16th March will make these changes revenue neutral for Ryanair. The airline estimates that the reduction in ticket revenues and excess baggage fees will cost Ryanair more than £100m per annum. These lower fares will stimulate further traffic growth and increase the current (50%) price differential between Ryanair’s prices and the average ticket prices of our higher fare competitors such as Easyjet. We expect as a result of these measures, and in particular the attraction of web check-in and priority boarding that more and more of Ryanair’s customers will be incentivised to travel with hand luggage only and take advantage of Ryanair’s industry leading 10kgs of carry-on luggage.

The upside for Ryanair in these initiatives will be the opportunity to significantly reduce airport and handling costs. We believe that between 40% to 50% of passengers will quickly switch to our new web check-in/priority boarding service. This will allow Ryanair to reduce the number of check-in desks, baggage hall and other handling facilities we rent at major airports. It will significantly reduce the number of check-in and baggage handling staff required to handle individual flights, although the airline expects few reductions in staffing numbers in these areas, as existing numbers will be required to handle our rapid growth. Ryanair believes that its airport and handling costs will be reduced by over 10%, which equate to a saving of some €30m. This saving would equate to 10% of Ryanair’s current year forecast after tax profits.

Announcing these changes in London, Michael O’Leary, Ryanair’s Chief Executive said:

“Many sceptics have doubted whether Ryanair could drive its fares even lower. Well today we prove the doubters wrong. From 16th March next, Ryanair will reduce its fares by almost 10% across the board. Ryanair will also become the first low fares airline in Europe to make web check-in available for all our customers and we believe that this service will prove enormously attractive to passengers who wish to avoid those frustrating queues at airport check-in, at security, and at the boarding gate as well.

“These changes will also be welcomed by the overwhelming majority of our remaining passengers who will still be checking in one bag, as these passengers will enjoy lower air fares, but also shorter and faster moving queues at airport check-in. We have no doubt that this pioneering development for checked in bags is the way forward, as it will encourage and incentivise more passengers on short-haul journeys to travel with hand luggage only. Ryanair’s higher carry-on limit of 10kgs, and our new increased checked in allowance of 20kgs will largely eliminate excess baggage charges.

“These changes will enable Ryanair to reduce our airport and handling costs across the network. We will require fewer and less expensive airport facilities such as airport check-in and baggage hall facilities. We will carry fewer bags making our aircraft lighter and improving our fuel consumption. Our existing check-in and baggage handling personnel will now be able to accommodate significantly greater traffic numbers as we aim to double the size of the airline over the coming five years.

“Ryanair started the low fares revolution in Europe back in 1990. We have continued to pioneer changes in both the cost and practice of air travel over the past 15 years. Today’s announcement takes this revolution one step further. With a 9% reduction in Europe’s lowest air fares and the first web check-in facility for low fare passengers, we believe that up to half of Ryanair’s passengers will now be encouraged to avoid airport queues. Short-haul travel in Europe will never have been cheaper or more convenient than Ryanair will make it this year”.

[aeroBits]

... with a lot to digest in it. Just a few thoughts - which are NOT meant as a Ryanair bashing...

Charge for baggage by use - FlyBe have done this too - wouldn't call it a revolution
cutting prices by 10%- hm, that would be 9p per sector :8
MOL (quotes not exact)- "we will allow all passengers to use web check in" - well, those with EU passports and no hold luggage
MOL - "and bypass all queues..." - apart from departures /Boarding card check in, security and boarding, but then this really is an improvement

Slightly worried that the statement about being able to use fewer check in desks for less time will backfire somewhat with the queues not really shortening as fewer people are offset by fewer desks. I often travel with Wife + Kid in pushchair, so have to check in at the desk and pay £2.50 extra for the pushchair to be carried. No drama, but I won't benefit.

Interesting that the announcement called Easyjet a "higher fare competitor"

Anyway - just a few thoughts that might spark comment.

[manintheback]

Eh?

As I read it, states that they are increasing the baggage allowance to avoid excess baggage fees. Then states that anyone bringing baggage now pays a compulsory fee for every bag checked?. Thus 25% without luggage pay less going forwards actually equates to 75% who have luggage pay more unless they pre book, pre pay, check in on the internet?. (presumably must be 5ft 6 or smaller and be left handed too?). And how does a 9% cut equal £2.50. A percentage is a moving amount

What a bizarre play on words.

[slim_slag]

It's a bit of a con to say all fares will be cut by 9% when there isn't a discernable fare structure. Not that this bothers me. I will apply the same rules as always. Total cost from door to door, and total time from door to door. Winner gets my cash.

[Desert Diner]

Very confusing all right. Some nice positive spin on a new charge:\

I agree, no one will be able to detect any reduction in fare prices whileit will enable FR to charge up to an additional 10 euro in bagage fees.

And before, I get accused or bashing :ooh: I find nothing wrong in being charged a few euro for taking bagage if you can get a ticket for 20-25 euros (after taxes).

[tom de luxe]

FARES REDUCED BY 9% (£2.50 OR €3.50) FROM 16TH MARCH '06

Cool. So for these "Free" (GBP/EUR 0.01) flights, I now earn GBP 2.49 / EUR 3.49? Fantastic...
:p

[STN Ramp Rat]

I think they have missed a trick and made it more complex than it needs to be. would it not have been easier to charge 5 pounds to use a check in agent and make web check in free. that way if they allowed the handling agent to collect/keep the fee then they could look to get free handling or even better be paid by the agents to handle them.

I cant see how this will reduce the number of check in agents unless they move to computerised check in again then they can hacve a bank of common check in desks at the moment there must be a minimum of one per flight and mostly 2

[clearfinalsno1]

If I read the press release correctly the web check in WILL be free. As to whether the middle 50% of passengers will see no fare rise is debatable. Yes, the logic of 2.50 off the ticket price to pay the 2.50 baggage fee is clear - but if the ticket price is only 99p in the first place you will be worse off. That is unless the 2.50 comes of the airport taxes (which it should).

In my mind it is the airport taxes that often make Ryanair MORE expensive in total than Easyjet (who seem to have higher fares but lower tax charges). Why can't they all have the same taxes (just advertised on each airport's web site) - I apologise if that has been discussed somewhere here before.

Finally, what implications if any will this have for flight safety? I suspect there's going to be a lot of 11kg bags stuffed into overhead lockers that won't quite close properly. What about c of g calculation - there will be a random distribution of a greater total weight than before around the cabin - this compared with a predictable hold baggage c of g advised by the handling staff before take-off. Where will they have the facility to weigh hand baggage - at the departure gate?

[firemac]

...that MOL has to keep finding ways to increase his revenues in order to bolster his bottom-line & demonstrate growth. However, in the mainstream press today, Ryanair is quoted as bringing in the checked baggage charges in order to coerce pax's towards carry-on baggage only.

Bearing in mind that a majority of pax's use Ryanair for their annual family hols, this seems an unrealistic ambition. Furthermore, aircraft seem to be getting smaller (certainly the short-haul eqpt anyway, e.g. Embraer 145, etc.) & people already board with excessive hand-baggage. I suspect that this new charge will simply increase the amount of rubbish cluttering up the cabins - the Mickey Mouse expresses, UK/Paris are particularly trying, especially the return flights which seem to have most of the stock of Disneyland's souvenir shops stashed in plastic bags all over the cabin instead of in the hold.

I suspect that MOL's next wheeze will involve dreaming up a credible marketing plan that involves pax's being offered discounted tickets in exchange for not actually flying. Now that would be some cost saving!

I must admit that I'm not that bothered as, having flown Ryanair once, I would rather chew my own foot off than use them again. They may be cheap but, as the saying goes, you get what you pay for; I'll stick to real airlines.

[PAXboy]

appologies if this should be on the Airlines airports and routes forum .... uummm, Yes it should be!! The Mods have already merged three other threads on this identical subject and put them in 'AA&R'

[davethelimey]

So...

Does this mean that there'll be some sort of scrummage for the locker spots?

Because although most passengers will happily cut down on the amount of luggage they take to avoid the charge, some will keep the quantity of luggage the same and try to cram it in the overheads.

Although this will work for the first 20 or so, after that the bins are going to get very full.

Will there be compulsory rehoming of luggage (i.e. putting it in the hold) or are the checkin agents going to have to become very eagle-eyed when it comes to spotting oversized bags?

Presumably, the maximum size of a carry-on bag will have to decrease, as more people will be bringing on hand luggage.

Sounds like a recipe for disaster to me, but I'm willing to be proven wrong.

[PAXboy]

FR state a max 10kg in the cabin. I am amused that both the BBC and The Independent newspaper headline it as, " Passengers to be charged for checking in luggage". The bit about fares coming down is added in later, so it appears taht both organisations do not believe that it will lower the cost to the passenger.

[Globaliser]

What if you have more than 20 kg checked? Is it going to be £2.50 per bag plus a charge per kg along current lines? Or will 20 kg be the absolute maximum for checked baggage?

[Avman]

This nonsense of price fragmentation just complicates the whole fares issue and effectively hides the true total cost from the average punter. How I'd love to go back to the good old days of one price all-in, including some decent service. I will NEVER EVER stoop so low as to fly RYR.