$3.4 BILLION dollars.
That’s how much airlines collected in bag fees in 2010.
Yup, that $50 bucks per bag can really add up. The total amount of baggage fees collected last year was up 24% from 2009.
But it doesn’t end there. Reservation and change fees added another $2.3 billion to the airlines’ coffers. Surprisingly, that's down 3% from 2009.
Monday, June 13, 2011
Thursday, March 31, 2011
Online travel deal wars
These days it seems like everyone is getting into the online discount travel business. From auction sites like LuxuryLink to members-only travel like Gilt Groupe’s Jet Setter to group-discounters like TripAlertz, every site has its allure.
Now there’s a new player in the field jockeying for your attention: Overstock.com.
The biggest hitch? You can only use the deals in the single month they are offered. For example, the 4-star Omni Majestic in St. Louis is $219 for 3 nights, but only in the month of September. I don’t know about you, but I like a little more flexibility in my trip planning especially with all the other travel website deal options that are out there.
The other thing that bothers me is that it really not clear just how much you are saving. If it's such a great deal, tell me about it! Who doesn't want that warm, cozy feeling you get when you know you just saved a bundle on a great getaway?
I'll cut Overstock some slack since its vacation site just launched, but with so much competition out there I think if it wants to be successful a lot more work needs to be done.
Now there’s a new player in the field jockeying for your attention: Overstock.com.
Yup, that’s right. The same discount website that brought you great deals on retail brand names is turning its sights to travel. So you can buy that Panasonic 32” LCD TV for $283 and/or 3 nights at the Key West Marriott for $302.
It makes sense; Hotels – just like retailers – have surplus merchandise they need to unload. But is it a good deal for you?
At first glance, I’m not much of a fan. Sure, the site itself looks pretty, and I like the fact that there are deals for domestic and international hotel stays. However, the hotels offered are pretty limited.
The biggest hitch? You can only use the deals in the single month they are offered. For example, the 4-star Omni Majestic in St. Louis is $219 for 3 nights, but only in the month of September. I don’t know about you, but I like a little more flexibility in my trip planning especially with all the other travel website deal options that are out there.
The other thing that bothers me is that it really not clear just how much you are saving. If it's such a great deal, tell me about it! Who doesn't want that warm, cozy feeling you get when you know you just saved a bundle on a great getaway?
I'll cut Overstock some slack since its vacation site just launched, but with so much competition out there I think if it wants to be successful a lot more work needs to be done.
Wednesday, March 30, 2011
Travel search going the way of the dinosaur?
Orbitz is losing out on yet another partnership. Last year, American Airlines pulled all its flights from the online travel website. And now comes word Enterprise and Orbitz are going their separate ways after “months of difficult discussions”.
Are these partnership break ups an Orbitz problem? Or an industry-wide problem?
Maybe both.
American Airlines (AA) originally pulled out of its deal with Orbitz because it wanted to cut costs and eliminate the “middle man” (although you still can book AA tickets on Priceline).
But if American’s business strategy proves successful, it won’t take long for the other airlines to follow suit and pull out of deals with Orbitz, Expedia, and the other sites. Heck, just look at Southwest Airlines. It has never offered its fares on any website but its own.
Ultimately, I worry the biggest loser is you the traveler. Less competition means higher prices and lower selection for flights, hotels, and rental cars...not to mention inconvenience!
Can you imagine the days of booking a flight by searching each individual airlines’ website and comparing each one-by-one? I need a vacation just thinking about it.
Are these partnership break ups an Orbitz problem? Or an industry-wide problem?
Maybe both.
American Airlines (AA) originally pulled out of its deal with Orbitz because it wanted to cut costs and eliminate the “middle man” (although you still can book AA tickets on Priceline).
But if American’s business strategy proves successful, it won’t take long for the other airlines to follow suit and pull out of deals with Orbitz, Expedia, and the other sites. Heck, just look at Southwest Airlines. It has never offered its fares on any website but its own.
Ultimately, I worry the biggest loser is you the traveler. Less competition means higher prices and lower selection for flights, hotels, and rental cars...not to mention inconvenience!
Can you imagine the days of booking a flight by searching each individual airlines’ website and comparing each one-by-one? I need a vacation just thinking about it.
Wednesday, January 5, 2011
Bidding to get bumped?
Overbooked flight. Been on one of those lately? Yeah, thought so. During July – September of 2010 alone, 183,469 passengers were “bumped” off their ticketed flight. That’s up nearly 3% from the same period a year earlier, according to the Department of Transportation.
Airlines have mastered the new business formula: fewer flights and more passengers. That means a big headache for passengers hoping to get where they are going. Well, grab the Advil because it may be getting worse.
Delta is launching a new system that asks you to set the price you’d accept to give up your airline seat. Marginal Revolution has the scoop. It looks like during check-in at one of its kiosks a screen pops up and asks you to just punch in a dollar figure.
It’s a genius move for Delta which won’t have to guess at how much (or how little) of a voucher passengers will take. But the catch is, you’re doing Delta’s dirty work. The airline hopes you will underbid other passengers, and ultimately, it hopes it will have to pay out less than perhaps it normally would have. In fact, the check-in screen even reads: “Tip: Delta accepts lower bids first”.
It’s still to be seen if Delta's new system has a maximum or minimum voucher price. So what's a good bid? Unfortunately, the Department of Transportation doesn’t keep statistics about average airline voucher values. But I think $300-$400, is a fair price for getting bumped on an average domestic flight. Remember: don't just think about how much you paid. The airline should compensate you for the inconvenience as well.
I should note I’m a frequent flier card-carrying member of Delta and for the most part, a big fan. Ultimately, however, I worry this is another lose-lose situation for passengers. Delta holds all the cards on this one. Delta overbooks your flight and fliers receive a smaller voucher to get bumped.
Airlines have mastered the new business formula: fewer flights and more passengers. That means a big headache for passengers hoping to get where they are going. Well, grab the Advil because it may be getting worse.
Delta is launching a new system that asks you to set the price you’d accept to give up your airline seat. Marginal Revolution has the scoop. It looks like during check-in at one of its kiosks a screen pops up and asks you to just punch in a dollar figure.
It’s a genius move for Delta which won’t have to guess at how much (or how little) of a voucher passengers will take. But the catch is, you’re doing Delta’s dirty work. The airline hopes you will underbid other passengers, and ultimately, it hopes it will have to pay out less than perhaps it normally would have. In fact, the check-in screen even reads: “Tip: Delta accepts lower bids first”.
It’s still to be seen if Delta's new system has a maximum or minimum voucher price. So what's a good bid? Unfortunately, the Department of Transportation doesn’t keep statistics about average airline voucher values. But I think $300-$400, is a fair price for getting bumped on an average domestic flight. Remember: don't just think about how much you paid. The airline should compensate you for the inconvenience as well.
I should note I’m a frequent flier card-carrying member of Delta and for the most part, a big fan. Ultimately, however, I worry this is another lose-lose situation for passengers. Delta holds all the cards on this one. Delta overbooks your flight and fliers receive a smaller voucher to get bumped.
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