Originally Posted by
DelDah Capt
Not trying to pile on here, but it will also been interesting to see how SWA handles their response on 'fees' for travel extras going forward. They are currently airing a number of TV ads ridiculing these fees and I really wonder if they aren't painting themselves into a corner. Several airlines have announced forecasts of hundreds of millions in extra revenue from these fees and it really looks like "a la carte" pricing in this industry is here to stay and will become the norm in the future. In an environment where every bit of revenue is important, it's going to be hard to turn your back on fees.
Look at the fast food industry, they packaged the meals to simplify pricing and they are extraordinarily profitable and successful. They also raised the prices of the sandwich. The reason the airlines charging extra fees is looking good is because people need them (gotta have luggage) . Consumers are not stupid like me, they will compare the final bill, compare to an airline that is not ala carte and go with the product that serves their needs. Expect WN will do well by NOT charging ala carte and still raise prices like the fast food industry model selling packaged meals.