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Spirit Airlines CEO stuffs himself in an overhead bin to justify paid carry-on fees
Spirit Airlines president and CEO, Ben Baldanza took some time out of his busy schedule to try and calm the masses about their upcoming paid carry-on baggage fees.
In his video clip, he claims passengers are annoyed by full overhead bins, and long lines to board the plane. He tells people that Spirit has lowered ticket prices, and lowered checked bag fees. In his logic, by introducing these new carry-on bag fees, the entire experience of flying Spirit Airlines will improve.
Now, lets take a look at his logic - too many people bring too much stuff on the plane. They crowd the overhead bins, and they create long lines for boarding. Why do people bring stuff on the plane? Because Spirit Airlines is one of a long list of airlines that charges for checked luggage ($25 for the first two bags when paid at the airport).
So, instead of removing that fee, and making the experience nicer for everyone, the airline earned itself the ridicule of the airline world by introducing the carry-on bag fee.
And seriously, even though the CEO thought he could be cool by trying to spin this with a funny video, the fact remains that the move to paid carry-on bags will probably cause the airline more than they'll ever make off their new scheme.
Assuming Mr. Baldanza reads Gadling, I'll explain why his scheme sucks from the perspective of a traveler:
- People carry bags on board because they don't want to pay the checked bag fee - they also want to prevent the airline from losing their bag, setting it on fire or having someone steal the contents.
- Telling people that their carry-on bag fee is offset by really low price of their ticket doesn't make the situation any better - people have a built in distrust of anything an airline tells them. A family of three may be forced to pay for three carry-on bags (each way). I suspect Spirit Airlines won't be able to show that these tickets will be $270 cheaper when the carry-on fee is introduced.
- People will vote with their wallets - there are still airlines out there that don't charge for checked bags, and as of right now, Spirit is the only one with a carry-on bag fee.
We did an entirely non scientific test to check that. On aSprit has reduced fares "by at least as much, or even more than the amount of the carry-on fee", says Baldanza. "Southwest makes you pay for checked bags even if you don't check bags, since they have to cover those costs but give you no break if you don't use the infrastructure. At Spirit, you spend only for what you use and don't pay for what you don't use."
Spirit Airlines: $195.40 total
Southwest Airlines: $220.80
Both flights are priced after the new carry-on fee goes into effect. As you can see - Spirit really is cheaper (by just over $25). This means that a passenger on Southwest Airlines will pay more than on Spirit Airlines.
Assuming of course that the passenger on Spirit is able to pack a weeks worth of luggage into a bag that will fit under their seat.
In reality, nobody is able to do that (unless they ship their bags), so a family of three will end up saving $76.20 on the ticket, but will have to pay a minimum of $90 for three carry-on bags (if they pre-pay online, $135 if paid at the airport).
Goodbye savings.
To me, the fact that the CEO of the airline had to resort to filming a stupid video means the PR backlash from this idea has hit them a little harder than they expected. At least Ben Baldanza is no stranger to bad PR (though he is no Michael O'Leary).
In the end, I'm sure the new measure will take place no matter how much we complain, though I doubt it'll create the "soaring sales" claimed by Mr. Baldanza, as I really can't think of a single kind of traveler that saw the new fee and thought "hey, that is really smart - let me start flying this low cost carrier with all the fees".
What is your opinion? Do you think the idea is smart? Or more importantly - why do you think it is smart (or not)?
| Smart - it forces people to pack lightly (and I don't mind paying for it) | |
|---|---|
| Smart - I never carry luggage when I travel, so I will save money | |
| Stupid - I need to carry at least some baggage, so this will make me fly someone else | |
| Stupid - I hate all fees |
UPDATE: See the results of the poll here. A surprising number of folks actually like the new fee.
Filed under: Airlines
Reader Comments (Page 1 of 4)
Crissy Apr 13th 2010 4:58PM
Just more proof that Spirit is run by an idiot.
Margery Apr 14th 2010 12:27PM
I think the "free gate check" that airlines offer at the last minute to passengers who defer checking bags is the real culprit in all of this, and that the problem would be solved if penalty fees were added to gate checks -- say 50% more fee than if the bag had been checked at check-in.
Anyone who travels by air these days is familiar with the boarding scenario: passengers who want to save money defer checking their humongous bags, and bring them on board where, no surprise to anyone, they will not fit in the overhead bins. But, these bags are then checked free. It is a win for the passenger, who effectively by-passes the luggage fee, but the rest of us lose when boarding takes "forever" due to the last minute checking of bags.
I am not in favor of charging for carry on bags, but the situation as it stands is ridiculous. The airlines need to find a way to "encourage" passengers to check their bags at the appropriate time, and close the "free gate check" loophole. Some people suggest having TSA enforce size and weight limits. When I travel in Europe I am surprised by the ease with which passengers accept reasonable limits on carry on. We would do well to follow their example.
Nick Apr 13th 2010 6:29PM
@ Margery
I too get irritated at people who take unfair advantage of the "free gate check" loophole that you describe. Not only do they block the narrow aisles and cause possible injuries, but it is also not fair to others in the plane who actually PAY for their checked bags.
However, don't you think the airlines would've eliminated this loophole already if they had found it practicable and/or economically beneficial? Here's why I think the airlines don't do it: checking in over-sized carry-ons at the gate would cost the airlines a lot in terms of additional staff for the purpose (processing payment etc.) and subsequent delay in take-off. Airlines operate their planes at very tight turn-arounds (usually 30-40 minutes), and it would actually cost the carriers more to have to formally check the bags than to just toss the few odd bags into the baggage hold and get the plane going on time.
I do not agree that the TSA should be made responsible for the baggage check-ins. Enforcing baggage restrictions is not within their mandate, and the TSA has already encroached a lot in our lives.
The best solution is for the airlines to screen carry-on at the check in counters for size/number limitations. Let the passengers carry only the allowed carry-on beyond the check-in desks.
Scott Carmichael Apr 13th 2010 8:26PM
@nick - but that means the airlines needs people at the check in desk. Now most of them have replaced most front desk staff with an electronic kiosk, there are not enough staff members to keep an eye on bags.
Also, if the rules allow me one large bag and one personal item, I'll carry the absolute maximum the airline allows me. Gate checking is usually done because the planes are just not designed for the 1+1 rule. Some airlines have enlarged their bins, but most of them are just not large enough. Even when everyone carries bags that fit the airline rules, at least 5 or 6 people end up needing to gate check.
Slappy Apr 13th 2010 8:56PM
I'm going to have to disagree with you Margery.
In my experience, people have been bringing too much stuff on to the planes as "carryons" since long before the airlines started charging for fees.
I believe the root cause is the "I'm special factor" people of all ages, genders, etc. have developed over the last 10-15 years with the I have to be catered to, I have to be first, I can't be made to wait, etc.
It's not just the carry on luggage, it's the cell phones, the "I don't have to follow the rules," the shorts and tank tops, etc.
fry Apr 13th 2010 7:57PM
It will probably work best for business travellers on short trips, or for single travellers. Most people aren't stupid... as long as the fees are clearly spelled out, they'll fly with the airline who offers the best bottom line price.
Charley Apr 13th 2010 8:52PM
Carry-on one personal item free (laptop, camera bag, purse, messenger bag, daypack,etc.) Pay for any other carry-on. One checked bag free. This would speed boarding for everyones. Business travelers can expense the carry-on fee. Tourists usually check bags anyway. People trying to carry-on retardedly huge bags get screened out at the check-in counter.
PS Apr 14th 2010 3:50PM
I am on planes multiple times during the week. Often flying in for an appointment one day and returning the next. I don't have time for an airline to lose my luggage and they have. Even if I am traveling up to 3 days all I take is my rolling briefcase (including my laptop) which doubles as a suitcase and sometimes I take my purse too. The briefcase is about 1/2 the size of the bags that I usually see go into the overhead and there is always room for someone else's coat to go in the overhead with it. On some planes this bag will fit under middle or window seat but never has it fit into the aisle seat. But hey perhaps they will charge me depending upon the seat I am assigned. I will NEVER fly an airline that charges (punishes me) for packing very lightly and placinging everything I need into one SMALL bag. Nor should my company be forced to pay extra. Ban coats in the overhead first!
Bert Apr 13th 2010 10:52PM
Come on people, this is really the floating-of-the-ballon to see if people will be willing to pay for "sleeper cabins', ie. can we stuff paying passengers in the overhead bins?
ncsustash Apr 14th 2010 1:38PM
"In reality, nobody is able to do that (unless they ship their bags), so a family of three will end up saving $76.20 on the ticket, but will have to pay a minimum of $90 for three carry-on bags (if they pre-pay online, $135 if paid at the airport).
Goodbye savings."
Wouldn't they check their bags for $75 dollars and the deal be equal with Southwest?
I am for this fee.
Scott Carmichael Apr 14th 2010 1:39PM
Sure - they can do that. But it still doesn't make the trip any cheaper.
Spirit claims that Southwest has their luggage fees hidden in the ticket price - but if the final price of a ticket with checked bags on Spirit is the same as on Southwest, how does any of this benefit passengers?
ncsustash Apr 14th 2010 1:57PM
It benefits them pretty easily. The family pays for what they use. They compress to 2 bags, saving $25.
Southwest does have the baggage fees somewhat hidden.
Scott Carmichael Apr 14th 2010 1:59PM
Sure they do - I Agree. But once you start thinking like that, the bathroom, legroom, oxygen, pilot pay and window shade are all "hidden" in the fee. Up until now, carry on bags and checked bags were always part of the ticket price. The a la carte method of ticketing is opening up all kinds of options for the airlines.
That said - I do agree with compressing 3 bags to 2, but that is starting to take away the fun of travel. We've already had to deal with toiletries, and now we need to leave stuff at home just because airlines want to make some extra $$$.
CiCi Apr 14th 2010 2:09PM
So did this lunatic CEO pay the carry on fee for himself before being allowed to get into the overhead bin?
Spirit is just trying to follow RyanAirs lead in Europe, charge for everything, offer nothing but a flying bus. And RyanAir is #1 in volume so of course someone's going to try to copy them.
repukeslie7 Apr 14th 2010 2:19PM
This whole pay for bags thing is such a scam. It is designed to confuse people when they are price-shopping for tickets. Now that I have seen what an idiot the CEO of Spirit is, you can be sure I will never fly that airline again. Lets get bullet trains in this country and put all of these morons out of business.
WakingDreamX Apr 14th 2010 2:19PM
I dont check in any luggage. If I cant fit it into a carry-on, I dont pack it. I lost luggage before and I wont allow that to happen again. I keep all my belongings with me at all times.
ncsustash Apr 14th 2010 2:28PM
There is already a la carte pricing in legroom.
Your arguement wasn't about fun. It was about cost and whether or not it would appeal to travelers. I think charging people for carrying on bags actually brings the fun back into travel. Security lines would be shorter, boarding times would be shorter, and airplanes could be designed to have more open space.
You should compare it to the pricing models for cars. You expect certain things when you buy a car (seats, engine, wheels, safety). If you want extra things (fancier radio, bigger trunk, leather) you can either pick a brand that you add them on one-by-one (GM, Ford) or you can pick a brand that puts more of them in the price up front (Honda, Acura). People will pick whatever method works best for their particular trip.
Scott Carmichael Apr 14th 2010 2:30PM
Do you really believe people will just stop carrying bags? The end result will be that people (like myself) will whine and rant about it, but end up paying the price, bringing the same amount of bags on board as we all used to. Plane will still be as full, and the airline will make even more money.
Kevin Apr 14th 2010 2:36PM
If the flying public would be willing to pay for a ticket what it actually costs the airline to fly from point A to point B, there would not be the need to have bag fees and removing other amenities that used to be included. However, the flying public would much prefer to put their (and their loved ones) lives in the air at an altitude of 33,000 feet in the cheapest seat available. Many thousands of experienced airline employees are out of work and the maintenance sent to third world countries with little to no oversight. All this to ensure a cheap seat.
ruth Apr 14th 2010 8:39PM
I'm glad someone else thinks like this.Airlines run businesses, and businesses need to be profitable. Flying is not a right. Figure out how much it costs per seat, add your profit, and move along. if you dont like, it either start your own airline, or stay home.