Comments on: on airlines & baggage http://blog.christopherbrito.com/2010/04/18/on-airlines-baggage/ random musings from a wannabe economist Tue, 23 Nov 2010 01:31:05 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: washiscoach http://blog.christopherbrito.com/2010/04/18/on-airlines-baggage/comment-page-1/#comment-40984 washiscoach Tue, 20 Apr 2010 02:34:19 +0000 http://blog.christopherbrito.com/?p=412#comment-40984 So I think Schumer's involvement reflects more of a frustration over the rate at which previously included services (checked bags, onboard food, seat selection, etc) have become itemized out. While there has been deflation in ticket prices, travelers aren't seeing a one-for-one discount, just a loss of services and a feeling that they're being nickel and dimed. This deflation in ticket pricing is of course in the face of costs rising for the industry, and largely because of irrational loss-leading pricing. Airlines got a bit more self control with the recent runups in fuel costs, but in order to preserve some kind of margin, they're being "creative" with these fees. Which are terrible for customer service. I will, once again, submit that the battle to get more luggage out of the main cabin cannot succeed without: 1) lower lost/delayed luggage rates, 2) economic incentive for people to check bags (especially since they take more time to deal with on either end) and 3) less theft from bags, whether it be via misbehaving luggage handlers, security people, etc. If I didn't have to deal with this routinely, I'd to sit back and watch the fireworks over this. Unfortunately such is not the case. So I think Schumer’s involvement reflects more of a frustration over the rate at which previously included services (checked bags, onboard food, seat selection, etc) have become itemized out. While there has been deflation in ticket prices, travelers aren’t seeing a one-for-one discount, just a loss of services and a feeling that they’re being nickel and dimed.

This deflation in ticket pricing is of course in the face of costs rising for the industry, and largely because of irrational loss-leading pricing. Airlines got a bit more self control with the recent runups in fuel costs, but in order to preserve some kind of margin, they’re being “creative” with these fees. Which are terrible for customer service.

I will, once again, submit that the battle to get more luggage out of the main cabin cannot succeed without: 1) lower lost/delayed luggage rates, 2) economic incentive for people to check bags (especially since they take more time to deal with on either end) and 3) less theft from bags, whether it be via misbehaving luggage handlers, security people, etc.

If I didn’t have to deal with this routinely, I’d to sit back and watch the fireworks over this. Unfortunately such is not the case.

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