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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 4 of 4)
Liz Apr 14th 2010 7:24PM
I still feel that the airlines should board starting with passengers seated at the back of the plane first and end with those seated at the front. This should allow the plane to load faster and more smoothly. While people are storing their belongings at the back of the plane, the passengers seated before them are also on board and are storing their belongings, so on and on. There would be no one stopping at row 10 holding up everyone who may still be trying to get to the rear of the plane.
If the airlines feel that those in first class are not being properly served because they have to wait, the airline could give them their courtesies while they wait. Besides, at least those in first class won't be bumped and knocked as the rear passengers pass them with their large bundles and else.
Scott Carmichael Apr 14th 2010 7:39PM
American Airlines does this (in theory). Problem is, that by the time they board group one (passengers in the rear), they have already boarded elite passengers, those with status on other airlines, those with "priority boarding" and often also passengers with only one bag. In other words - by the time the rear of the plane can board, often 50% of the plane is already clogged by elite members trying to stash their bags.
Ted Apr 14th 2010 7:46PM
For those of you who say the carry-ons should be monitored at the ticket counter it's not always possible. Many people check-in at home now and never go to the ticket counter. I've heard them fighting with the agents over their bags many times. The agents try but people want everything free. Society has trained them to be this way.lAgents don't like having to charge for bags but it's their job to enforce the rules. Airlines used to serve free food but everyone complained it wasn't good enough. Now they don't serve free food and people complain about that too. If you can't afford to fly then don't. It's a luxury not a right. Fares are so low most airlines are losing money/not breaking even so they're desperately looking for ways to make some moulah. Those losses are often passed on to airline employees by layoffs and pay cuts. The industry is complicated. People pack too much stuff. Airplanes can only hold so much.
Patrick Apr 14th 2010 8:04PM
This is actually a very logical and smart business idea. I recently spoke with managers at American Airlines and recommended they institute this about 3-4 months ago and the only issue they could see was where to collect cash if people do not pay in advance online. Although consumers do not like this, and I would be affected by it as well, the airline industry as a whole needs a lot of help and this would help some firms and their profitability. Am I an executive of an airline company? Nope. Just someone who knows how business works. When customers perceive value in something its quite possible to charge for it. Get used to these fees. They will be industry wide soon and here to stay.
Mike Apr 15th 2010 10:37AM
I understand the logic behind this type of fare but it's a bad business tactic if it makes you appear that you screw your customers every chance you get. Airlines nickel and dime (and dollar) us with fees like this because they are afraid to raise their base ticket prices. They know that people will fly less if they see that the round-trip ticket is 25% more than it used to be and they have realized that, if you add a few dollars for a check bag, a few more for an in-flight meal, a few more for extra leg room, etc. that people don't react the same way. There are a few airlines (Southwest and Jet Blue come to mind) that understand that making the flying experience a little less annoying and trying to make your customers happy builds brand loyalty. I doubt that Spirit will do anything to boost their business with this stunt.
sam Apr 15th 2010 6:02PM
Everyone! Stop complaining about people who "work the system". The system is meant to be worked. If airlines let people gate check bags for free, why should people try to "be nice" and pay at check-in? In fact, how is it smarter to pay when you can do it free at the gate? You should all do it, instead of hating the others who do it. If the airlines want to stop this practice, they'll start charging at the gate. Move on, people.
John Apr 19th 2010 5:25PM
Just enforce the carry on policy that's in place now, 1 item plus a personal item! This policy shows how insensitive the CEO really is, making fun of anyone who objects to his "new idea", crawling into the overhead. I really hope this puts Spirit out of business or they get new management. As someone said recently, while stranded at the DTW airport while waiting for their Spirit flight, "I wished I had paid another $20 and flown a real airline".