OMG Please don't start selling overhead bin space!!

Discussion in 'Delta Air Lines | SkyMiles' started by gregm, Oct 14, 2013.  |  Print Topic

  1. gregm

    gregm Gold Member

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    http://wallstcheatsheet.com/stocks/...n-a-buck-right-over-our-heads.html/?a=viewall

    or:
    Delta and Other Airlines Turn a Buck Right Over Our Heads
    ANTHEA MITCHELL | MORE ARTICLES
    OCTOBER 13, 2013
    [​IMG]

    It’s obvious to most that there are advantages to first- and business-class seats on airline flights. However, some may not realize that Delta Air Lines (NASDAQ:DAL) and other airlines are capitalizing on the limited availability of overhead compartments. Not everyone will necessarily find space for their carry-on, and as a result, higher paying customers are more likely to be guaranteed this particular convenience.


    Andy Jacobs, a Delta customer, told The New York Times that while “There are multiple ways you can improve upon your boarding zone … As a diamond member on Delta, I never have a problem securing space.” What this ultimately means for Delta, and airlines like it, is an additional impetus for customers to spend more money— and therefore an increase in revenues.

    Why would checking a bag that doesn’t quite fit in a bin be such a problem? It is, after all, free. “As a chocolate salesperson, I need to bring my bags on the plane so the chocolate won’t melt,” said Jacobs. “When you’re flying to a major customer and you pick up your bags at baggage claim and your samples are melted, that becomes a pretty big problem,” he said.



    The example of a business-necessitated carry-on brings up the possibility that customers may need to spend more on plane tickets[​IMG] — or be encouraged to utilize airline affinity cards — for reasons beyond the complementary sleep mask, legroom, and gourmet nut mix.

    According to The New York Times,though specific numbers aren’t in yet regarding the early boarding revenue, analysts say it has been increasing. “There is growth there,” said Jay Sorenson, President[​IMG]of IdeaWorksCompany, an airline consulting firm, predicting that “Airlines will implement more of these fees.”

    According to USA Today, though revenue from baggage fees has more than doubled from 2008 to 2009, the seventeen largest airlines in the U.S. saw a decrees in baggage fees from $3.4 billion in 2010 to $3.36 billion in 2011.

    This is attributable to lighter packing, smarter packing, and “learning[​IMG] how to ‘play the game’ and bet on being relieved of bags that won’t fit on board on the jet bridge, thereby avoiding fees,” said Robert Mann — airline analyst at R.W. Mann & Co.
     
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  2. gleff
    Original Member

    gleff Co-founder

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    Well Spirit charges for carryons above a certain size, and the article here is really just talking about fees, upcharges, and strategies for obtaining early boarding so you don't have to gate check a bag.

    IMHO the only reason to board early is to secure overhead space proximate to your seat. If I wasn't going to use overhead space (eg I didn't have a rollaboard with me) I would prefer to board closer to last..
     
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  3. sobore
    Original Member

    sobore Gold Member

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    Guess we are heading toward a fold down tray usage charge. :(
    Enough is enough with these fees IMO.
     
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  4. NYBanker
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    NYBanker Gold Member

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    Mate, it is the consumers training carriers to behave like this.

    The average leisure traveler goes to an OTA and sorts by price. Essentially no one picks a carrier for extra leg room, a superior food offering, or the fact that they offer pillows. People sort by the fare, pick the lowest and then kvetch that "extras" aren't included.

    Until customers start behaving differently, there is no expectation that carriers will behave differently.
     
  5. NYBanker
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    NYBanker Gold Member

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    @gregm Rest assured, we have a long way to go before mainline carriers start charging for overhead space. I could see them more strictly enforcing carry-on size rules, but the charge to carry on model is not in the mid-term cards for them.
     
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  6. zphelj

    zphelj Gold Member

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    They have been doing this in a sense for quite some time; pay a little extra to board earlier and make sure you can have some overhead space or give us the extra revenue to be an elite and do the same.
     
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  7. sobore
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    sobore Gold Member

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    I understand the mass demand for the lowest airfare by the general public. Better food, legroom and such is a reasonable add-on to the price. The basics like the lav, a place to put your luggage, and an armrest should not be an additional charge.
     
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  8. NYBanker
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    NYBanker Gold Member

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    While the position that these "should not be" at an additional charge is a reasonable one, alas, the vast majority of leisure pax's actions at the purchase screen don't line up with the position.
     
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  9. MSPeconomist
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    MSPeconomist Gold Member

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    I don't see what this article has to do specifically with DL. The only link seems to be the quote from a DL passenger. This doesn't justify the headline or the mention of DL in the text.
     
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  10. LarryInNYC

    LarryInNYC Gold Member

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    Nor is there any suggestion of new overhead bag fees in this article. It's about early boarding fees (and status).
     
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  11. gregm

    gregm Gold Member

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    Correct. It seems to be more about the need to "upsell" in fear of not having space overhead.
     
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  12. LETTERBOY
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    LETTERBOY Gold Member

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    Well, the flying public, for all the complaining that many of them do about fees, keep paying them, it's obviously not a huge deal to most people.
     
  13. YULtide

    YULtide Gold Member

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    Coming soon to a safety announcement:

    In order to release your seat belt, simply lift the tab and insert $10..... In the event of a cabin depressurization, an oxygen mask will drop from the ceiling above you. Place the mask over your mouth and nose, insert your credit card in the slot above your head and breathe normally.
     
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  14. gregm

    gregm Gold Member

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    Maybe they will charge to pick up the used airsick bags.
     
  15. gregm

    gregm Gold Member

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    "For 100% Oxygen, please insert an additional $5. For 80%, please insert an additional.... .........."
     
  16. Always Be Flying
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    Always Be Flying Silver Member

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    I think this is more because airlines have us (in the USA) over a barrel for the most part. There are no trains of use and it is too far to drive many places. You can bet some tin can airline like Spirit or Allegiant will try the pay toilet thing, and whatever other nickel-and-dime mess they can get away with.
     
  17. LETTERBOY
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    LETTERBOY Gold Member

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    This is probably true to a great degree, but the fact remains that people pay the fees in spite of their complaining about them.
     
  18. Pizzaman
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    Pizzaman Co-founder

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    I'd take this a step further and say that on UA this year the FAs have had to gate check bags on the majority of my flights. So, it's become a requirement for me to board early just to have overhead space, period. I, too, have no desire to be on a plane earlier for the 50-ish% of the time I'm sitting in back on UA.
     
  19. goranger22

    goranger22 New Member

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    They should start enforcing bag sizes and also making sure that people don't actually have 3 bags with them. As soon as they can get away with it on one flight, they expect it for all others.
     
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  20. ballardFlyer

    ballardFlyer Gold Member

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    That is so true. But stopping people for this in boarding slows boarding as they block the jetway so it's almost a disincentive for the GA to enforce at times. Same thing with hard enforcement of size checking of of a little bigger but still reasonable roller bags (on mainline craft at least). It slows it down.

    The boarding process is so full of trade offs!
     
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  21. gregm

    gregm Gold Member

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    Those old bag sizers at the boarding gates in no way reflect the size limit of carry-ons! (Maybe 10 years ago.)
     
  22. NYBanker
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    NYBanker Gold Member

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    There was a period maybe two years ago where AA was enforcing this pretty hard. I recall a departure from MIA and they were enforcing the rules pretty hard, even during early group boarding.

    I was fortunate to be using five-star that day and zipped right through with two grossly oversized carry-ons. :) Seeing what happened to others that time, however, impacted how I packed on subsequent trips for a while.

    I haven't seen that much vigor at the gate in terms of checking bags in some time.
     

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