Statements posted here are those of our readers and do not represent the BaseballThinkFactory. Names are provided by the poster and are not verified. We ask that posters follow our submission policy. Please report any inappropriate comments.
Time was you could fly from LAX to MIA nonstop with assigned seats and 2 meals for X fare. But then Southwest offered the same route, albeit with 2 stopovers, no meals, and first come, first served seating, for $30 less, and people flocked to it.
The pre-deregulation fares were considerably higher - enough that many couldn't afford to fly. I'm not a big fan of being in a flying sardine container but the old days weren't that great unless money was no problem.
The pre-deregulation fares were considerably higher - enough that many couldn't afford to fly. I'm not a big fan of being in a flying sardine container but the old days weren't that great unless money was no problem.
My point is, start up cheapie airlines started cutting out services and charging less, and people flocked to them. The majors had to follow suit to compete, but since they also had business and premium passengers who still wanted those services, they came up with the model that offered competitive fares and ala carte services. And so the cheapies got even cheaper and started charging for even basic services. And now the people who caused this change are the ones complaining about being nickle and dimed on services.
People fly Spirit Air for $9 one way and complain about all the add on charges. It is to laugh.
A man orders a quarter pounder with cheese at McDonald's. He takes one bite and it's rancid and has multiple hairs in it. He storms to the counter.
At least in your scenario the customer gets a burger. This is more like:
Customer: I'd like a Big Mac please.
McDonald's: That'll be $1.69.
Customer: Great (pays money).
McDonald's: Ooh, I just forgot, we are all out of meat. I'd be happy to offer you a refund though.
Customer: Oh, ok.
McDonald's: Here's your $1.59 back.
Customer: But its $1.69.
McDonald's: Yes, but I handled your transaction!
54.musial6 posted on October 19, 2012 at 09:01 AM #hit 0 | hit 0
My freshman econ prof boasted about how he bought tickets to game 6 of the World Series, but recognized he'd be eating the $9 service charge if they didn't make it.
That was in 1999, and the team was the Reds. That's right, a team that had yet to even qualify for the postseason proper had put World Series tickets onsale to the general public with non-refundable service charges.
This is a scam that's been going on for a long time.
The Cardinals have sent out playoff ticket applications to season ticket holders every year since 2000 - incl 2003, 2007, 2008, and 2010 seasons when they failed to qualify. There's always a fixed non-refundable service charge for the entire package (that seems to rise marginally each year, $35 last year - $36 this year).
My point is, start up cheapie airlines started cutting out services and charging less, and people flocked to them. The majors had to follow suit to compete, but since they also had business and premium passengers who still wanted those services, they came up with the model that offered competitive fares and ala carte services. And so the cheapies got even cheaper and started charging for even basic services. And now the people who caused this change are the ones complaining about being nickle and dimed on services.
I don't know about cheap/non-cheap major/minor airlines, they all seem pretty terrible to me, but I am fairly certain for a large number of consumers it's all about the lowest initial purchase price. Everything else, seat comfort, time of day, baggage fees, service, etc, has proven to not ultimately matter. Can't find the analysis of the buying habits, but I believe this greatly influenced the low price, then add fee model that exists today.
56.BDC posted on October 19, 2012 at 12:48 PM #hit 0 | hit 0
I am fairly certain for a large number of consumers it's all about the lowest initial purchase price. Everything else, seat comfort, time of day, baggage fees, service, etc, has proven to not ultimately matter
It's interesting – what matters is what happens on aggregate, and one can see why the base ticket price wins out on aggregate. I've flown a great deal in the past decade, and as a frequent commuter with limited time to mess around going by way of Kansas City, I often paid a little more for direct flights at convenient times of day. But I won't pay several times more, and for every person who will pay a little more for some feature (schedule, connections, convenient airport), there must be several who don't mind a bit of inconvenience. And obviously, every time of day is convenient for somebody, and for lots of people seven hours flight time is as good as four, Grandma can just spend more time baking anyway :)
As for the food, I would have paid extra not to have to eat the American Airlines "Bistro Bag."
One thing that annoys me is the fees that they charge for something that makes both my life harder and their life easier. For example, I've bought tickets and at the end I get a choice: pick up at Will Call for free or pay to be able to print my tickets from home. I guess I have to stand in line for Will Call, but at least I don't have to worry about losing my tickets. So it's more convenient for me and more work for them, but that's the free option. Or under the same concept, it's often free to get the tickets mailed but a charge to print them. Ends up being kind of the same for me, but isn't it a lot more costly for them to mail me the tickets?
58.zonk posted on October 19, 2012 at 01:37 PM #hit 0 | hit 0
It's interesting – what matters is what happens on aggregate, and one can see why the base ticket price wins out on aggregate. I've flown a great deal in the past decade, and as a frequent commuter with limited time to mess around going by way of Kansas City, I often paid a little more for direct flights at convenient times of day. But I won't pay several times more, and for every person who will pay a little more for some feature (schedule, connections, convenient airport), there must be several who don't mind a bit of inconvenience. And obviously, every time of day is convenient for somebody, and for lots of people seven hours flight time is as good as four, Grandma can just spend more time baking anyway :)
As for the food, I would have paid extra not to have to eat the American Airlines "Bistro Bag."
In my case of choosing Spirit -- it was simply a last minute decision to join a few dozen friends for annual Vegas weekend... Decided the Saturday (6 days before) that I wanted to go -- and the face value/booked price for Spirit was just $200 cheaper than other legitimate option.
I don't like to fly at all -- not the whole airport thing, I just get nervous flying -- so after price, non-stop is the biggest thing for me. If I book far enough in advance, I'll also pay attention to timing....
I agree, though, on food and such. Zero desire to ever eat another airline meal again and I don't mind paying for a cocktail or two.
The one thing I do dislike about the discount airlines is the lack of a true 'first class' -- not that I fly first class all that often at all, but even with my dislike for flying, I do tend to fly about 4 or 5 times a year. I never fail to see if I can get a cheap upgrade at the gate - and about 1/3 the time, I can do so for a pretty cheap price. The bigger seats, extended legroom, and cocktail service always make that worthwhile.
Reader Comments and Retorts
Go to end of page
Statements posted here are those of our readers and do not represent the BaseballThinkFactory. Names are provided by the poster and are not verified. We ask that posters follow our submission policy. Please report any inappropriate comments.
Page 2 of 2 pages
< 1 2The pre-deregulation fares were considerably higher - enough that many couldn't afford to fly. I'm not a big fan of being in a flying sardine container but the old days weren't that great unless money was no problem.
My point is, start up cheapie airlines started cutting out services and charging less, and people flocked to them. The majors had to follow suit to compete, but since they also had business and premium passengers who still wanted those services, they came up with the model that offered competitive fares and ala carte services. And so the cheapies got even cheaper and started charging for even basic services. And now the people who caused this change are the ones complaining about being nickle and dimed on services.
People fly Spirit Air for $9 one way and complain about all the add on charges. It is to laugh.
At least in your scenario the customer gets a burger. This is more like:
Customer: I'd like a Big Mac please.
McDonald's: That'll be $1.69.
Customer: Great (pays money).
McDonald's: Ooh, I just forgot, we are all out of meat. I'd be happy to offer you a refund though.
Customer: Oh, ok.
McDonald's: Here's your $1.59 back.
Customer: But its $1.69.
McDonald's: Yes, but I handled your transaction!
That was in 1999, and the team was the Reds. That's right, a team that had yet to even qualify for the postseason proper had put World Series tickets onsale to the general public with non-refundable service charges.
This is a scam that's been going on for a long time.
The Cardinals have sent out playoff ticket applications to season ticket holders every year since 2000 - incl 2003, 2007, 2008, and 2010 seasons when they failed to qualify. There's always a fixed non-refundable service charge for the entire package (that seems to rise marginally each year, $35 last year - $36 this year).
That's the cost of doing business.
I don't know about cheap/non-cheap major/minor airlines, they all seem pretty terrible to me, but I am fairly certain for a large number of consumers it's all about the lowest initial purchase price. Everything else, seat comfort, time of day, baggage fees, service, etc, has proven to not ultimately matter. Can't find the analysis of the buying habits, but I believe this greatly influenced the low price, then add fee model that exists today.
It's interesting – what matters is what happens on aggregate, and one can see why the base ticket price wins out on aggregate. I've flown a great deal in the past decade, and as a frequent commuter with limited time to mess around going by way of Kansas City, I often paid a little more for direct flights at convenient times of day. But I won't pay several times more, and for every person who will pay a little more for some feature (schedule, connections, convenient airport), there must be several who don't mind a bit of inconvenience. And obviously, every time of day is convenient for somebody, and for lots of people seven hours flight time is as good as four, Grandma can just spend more time baking anyway :)
As for the food, I would have paid extra not to have to eat the American Airlines "Bistro Bag."
In my case of choosing Spirit -- it was simply a last minute decision to join a few dozen friends for annual Vegas weekend... Decided the Saturday (6 days before) that I wanted to go -- and the face value/booked price for Spirit was just $200 cheaper than other legitimate option.
I don't like to fly at all -- not the whole airport thing, I just get nervous flying -- so after price, non-stop is the biggest thing for me. If I book far enough in advance, I'll also pay attention to timing....
I agree, though, on food and such. Zero desire to ever eat another airline meal again and I don't mind paying for a cocktail or two.
The one thing I do dislike about the discount airlines is the lack of a true 'first class' -- not that I fly first class all that often at all, but even with my dislike for flying, I do tend to fly about 4 or 5 times a year. I never fail to see if I can get a cheap upgrade at the gate - and about 1/3 the time, I can do so for a pretty cheap price. The bigger seats, extended legroom, and cocktail service always make that worthwhile.
Page 2 of 2 pages
< 1 2You must be Registered and Logged In to post comments.