Random Post: You Need Smart Lazy People
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    Airlines Can Charge, People Will Pay

    All sorts of talking heads have been in the news recently discussing what the impact will be of the decision that Spirit Airlines to charge people up to $45 per carry on.  They talk about how other airlines will watch them to see how the program is received by the public.  Then of course there are the Southwest commercials that only talk about how they don’t have bag fees.  But all of these people, in particular Southwest, are missing the boat.

    People  get upset when new fees are implemented.  Some fees, like for checked baggage, are just frustrating while others, like charging for bathroom use, are silly, and still others are illegal (like charging for handicap assistance).  But these fees only make people upset for the moment and then they pay.  I would argue it is in danger of becoming a confusopoly.

    What makes it worse is that the pointless TSA rules force you to discard items (like beverages) and yet provide no oversight on the cost of the beverage on the other side of the gates.  Meanwhile they are spending $1 Billion on scanners that, by all accounts, don’t work, are able to transmit ‘nude’ photos (as specified in the requirements document in the original proposal), and could damage your DNA.  And of course this is tax dollars and additional security fees at work.

    Whatever, the point is there are lots and lots of fees which brings me to the point of this post: all of the power is in the hands of Kayak and Priceline.

    Think about it for a second.  Airlines are imposing these fees so that they can get the lowest far shown, which should drive business.  This clearly is based on the assumption that price is the most important thing to customers that are traveling.  And yet nothing is being done on these comparison sites to expose this.

    Which brings me to my secondary point: Southwest is getting screwed.  If I ran Southwest starting tomorrow, the first thing I would do would be call up Priceline and Kayak.  I would get an estimate of what it would take to add “how many checked bags”, “how many carry-ons”, “how many in flight meals/snacks”, “how many in-flight bathroom uses”? and similar things to the site and I would pay to develop that functionality.  The prices people see now are simply no longer valid.  There are too many additional add on costs to just keep ignoring them.  And for an airline like Southwest, to not expose that more in a pricing engine is a HUGE miss.

    While I like the lower costs, and I like the idea of only being charged what I use, I also think I like to feel like I got a deal, or at least am not being taken for every cent I have.  It is a very delicate balance, and probably depends on the point of the trip (business or fun).  This could get interesting.

    What do  you think about the more a la carte structure (besides that cable companies should offer it)?

    This has been a Thought From The Cake Scraps.

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