Markets in Everything


Airline tickets.  The price of ’em.  Actually, the COST of flying.

Maddening.  Right?

Kinda, but only because they’re changing how they charge.

Since 2000, the price of airline tickets has gone down.  For example, a ticket bought in 2000 cost $221.00 at a value of $280.00 today.  However, tickets cost only $271.00 earlier in the year and are at $276 now.

So why are we so angry?  Why do we FEEL the airlines are charging us more?

William Shatner.

That’s why.

Well, actually, Shatner is Priceline, but the idea is the same.  We’re paying less for the ticket because we are able to comparison shop online.  We can go to any host of websites, type in our city of origin and destination, a range of days to depart and return and get 5 or 6 different prices from any number of airline.  And if you’re like me, you pick the cheapest.

So, guess what?  The airlines react to this incentive by reducing the price of tickets.  However, they are NOT able to reduce the cost of flying.  So, they have begun to charge for the “extras”.

  • The number of bags
  • The weight of bags
  • The weight of people
  • And now…..

They are charging for, you guessed it, the right to reserve a front seat:

NEW YORK — American Airlines has found another fee.

The Fort Worth, Texas, airline said Wednesday it’s now charging between $19 and $39 for “Express Seats” — those spots in the first few rows of coach that include bulkhead seats.

If we aren’t willing to pay more for a ticket, maybe we’re willing to pay more for a front seat?

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

Advertisements
4 comments
  1. Karyn said:

    This isn’t new…united has had “economy plus” for a few years now…. And the additional charges aren’t going to stop…with price battles, it’s the only way they can generate additional revenues…

    • pino said:

      united has had “economy plus” for a few years now

      Didn’t know that. Interesting.

      the additional charges aren’t going to stop…

      Yup. The cost remains the same, but the ticket keeps going down. They have to make up the gap somewhere.

      it’s the only way they can generate additional revenues

      I’ve read about “Standing Room Only” tickets.

      Yikes!

  2. Karyn said:

    so we were talking about this tonight, and i realized I’m not completely sure where you come down on these fees … free market = fees good and fair?

    • pino said:

      I’m not completely sure where you come down on these fees … free market = fees good and fair?

      I am in favor of the fees. With caveat.

      Anytime something has a value, we all are made “better” by exposing it to the market.

      For example, if the front seats are worth more to some people, the airline should charge more for it and relieve the rest of us from having to pay for it. For example, rather than all seats costing 100 bucks, I would rather have the front seats pay 107 if the back seats only had to pay 95.

      Same with luggage.

      My caveat? That the airlines don’t make the market in a “gotcha” kinda sense. Be honest about the fact that several aspects of the process have been isolated and exposed.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: