24 August 2010

Latest airline fees geared at fast-growing premium services

The latest airline fee is going beyond essentials such as checking bags: giving fliers a chance to sit in first class.

These include paying to walk on the plane with elite status members and selling day passes to use the first class lounge.

"There certainly are perks that will now become available to passengers who normally would not qualify for them based on the amount of flying they do," said Jay Sorensen, a consultant on the subject. He told USA Today:

"Network airlines such as United, American, and Continental have realized that they have an attractive asset called 'services' they provide to elite travelers, and they've learned they can sell these on an à la carte basis to any consumer."

Some observers see premium coach as the fastest-growing segment of the business and leisure market.

This often involves a group of travelers that "is looking for a product that's more than coach but doesn't want to pay for business class," said Robin Hayes, executive vp for JetBlue.

One example: American Airlines this summer has a new package dubbed "Your Choice," which involves a US$9-19 cost to be among the first to board.

"This is about offering passengers options to enhance and personalize and individualize their travel," said Tom O'Toole, senior vice president and chief marketing officer for United.

Such options have dramatically increased passenger satisfaction, he said.

By David Wilkening

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Reverse Logic

Of course, this can also be made to work the other way. If I travel first class, say, with just one bag - where's my discount for the 30kg luggage allowance? I don't want to use the lounge, and I am quite happy standing in the queue. I don't want a big meal and I can manage without any booze. So, how much will I get off for that?

By ** Jetwash **, Tuesday, August 24, 2010