American Airlines seems have received a lot of flak for their announced policy of charging fifteen dollars for a passenger’s first checked bag. They tried to explain it by citing the increased cost of fuel. If they just increased the price of a ticket they might have gotten less grief.
Maybe others will copy it, and maybe it will become the standard. But for now the question is, “What are consumers entitled to have?” Can we expect to have free meal on a flight—like we used to have? Can we expect to have our baggage handled for us—which obviously is a labor cost for the airline? What’s next—a charge for carry-ons? A charge for using the restroom? A ticket priced on your weight?
It’s an age old dilemma in many fields—should you pay a la carte for every item or service, or have the costs buried in one fee, the same for everyone?
Decades ago we had the price stamped on every product in the grocery store. Consumerists said we are entitled to have that. Then came the bar codes, and prices were printed on your receipt. The system became more efficient; it was progress and we accepted it.
I guess we thought that when we pay for a ticket, our bags will fly free. When we buy a TV set, we expect free programs will come with it (for the most part.) In that case, advertisers foot the bill; is there a way we can slough off the cost of baggage to someone else?
The increased cost of oil is having a ripple effect with unexpected consequences. Will it have any bearing on you business? Think hard about that, and have a plan that will help you through it with minimal damage.
George Lemmond
