By Alexis Stodghill on Apr 9th 2010 1:57PM
Filed under: News, The Economy, Budget
Spirit Airlines has just announced that it will now charge $45 per bag for any bag a flier places in an overhead bin. There was an uproar about this news, but what many do not realize is that this business decision is just the latest move in a long list made by airlines who have increased prices for basic services -- or cut them completely.
AOL travel reports:
There seems to be a domino effect with airline fees. Virgin American and JetBlue started charging for blankets, so American Airlines followed suit. Continental was a little late to the party when it announced it will discontinue free meals (a dinosaur among legacy carriers). And 2010 started with an across-the-board bag fee hike at most major airlines, including all legacy carriers and even Virgin America. "These are prime examples of the industry's bandwagon mentality," says Anne Banas, executive editor of SmarterTravel.com. "Once one airline starts the parade and adds or raises a fee, the rest eventually join in. They figure, if everyone else is doing it, why shouldn't we?"
We covered the new world of baggage fees and surcharges back in December, but the add-ons haven't stopped and airlines are getting more and more creative, charging for as many "perks" as they can: "preferred" seat selection, non-website ticket purchase, itinerary changes, confirmed same-day standby, booking fees for frequent flier redemptions, and more. And now, budget carrier Spirit Airlines announced they would begin charging up to $45 for any bags placed in overhead bins, making them the first of the major U.S. airlines to charge for carry-ons. Unfortunately airlines' à la carte "convenience fees" may just be the tip of the iceberg for a drowning industry trying to stay afloat amid increasing shortfalls, including an 18-percent drop in 2009 passenger revenue alone.
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10 Things We Are Still Buying
Smart Phones
From Apple's iPhone to Blackberry's Bold, smart phones continue to increase in popularity. From November 2007 to November 2008, the number of smart phones purchased increased from 13 million to 24 million. That translated to a sales increase of 53% from $2.7 billion to $4.1 billion in the same period, says Port Washington, N.Y.-based market research firm NPD.
AP
BlackVoices.com
10 Things We Are Still Buying
Hey, Big Spender, are you out there? You must be, since December 2008 sales amounted to $343.2 billion. What did you buy? Nothing impulsive or lavish, it would seem. Consumer confidence is at its lowest point in history and retail sales were down 2.7% in December 2008 from November 2008 and 9.8% from December 2007.
However, while retailers suffer from shoppers changing their behaviors during recessions (mainly by abandoning brand loyalty), there are certain things people won't give up. Click through our gallery as we share five of Forbes' list of 10 things Americans are still buying.
(To click through the gallery, mouse over the image at left and click on the right arrow.)
10 Things We Are Still Buying
Smart Phones
From Apple's iPhone to Blackberry's Bold, smart phones continue to increase in popularity. From November 2007 to November 2008, the number of smart phones purchased increased from 13 million to 24 million. That translated to a sales increase of 53% from $2.7 billion to $4.1 billion in the same period, says Port Washington, N.Y.-based market research firm NPD.
10 Things We Are Still Buying
Video Games and Consoles
Consumers today desire affordable escapism, and videogames fall into that category. Two top-selling games -- "Madden NFL '09" and the "Wii Fit" -- sold 5 million units combined in the third quarter of 2008, according to NPD.
10 Things We Are Still Buying
Gym Memberships
Just because you've been let go doesn't mean you have to let your appearance go. That's the sentiment many Americans are taking on this year, as total gym memberships are estimated to increase by 4% in 2009, according St. Louis, Mo.-based market research firm Stifel Nicolaus.
10 Things We Are Still Buying
Personal Care
Keeping up appearances also means investing in personal care products, which range from shaving cream to toothpaste to perfume. From November 2007 to November 2008, U.S. sales of shampoo, acne treatments, skin care gift sets and grooming products increased by 18%, 14%, 11% and 15%, respectively, according to Karen Grant, senior beauty analyst at NPD.
10 Things We Are Still Buying
Toy Building Sets
It's hard to say no to your kids, even when times are tough. That's why toys like building blocks--which often last and keep kids occupied longer than other games--saw an increase of 30% from October 2007 to October 2008, according to NPD. Lego, arguably the king of building blocks, says that 2008 year-over-year sales increased by more than 12%.
Click here to see the rest of the items we're still buying.
10 Things We Are Still Buying
These revenues will continue to shrink as the economy grows worse if airlines continue to raise fees on things that are required for travel. As airlines seem to follow each others' money-gouging practices, it might not be too long before more and more airlines start following Spirit Airlines' example, making air travel that much more expensive. If you and your family want to be able to continue enjoying the benefits of travel at reasonable prices, is there any way to avoid these types of baggage fees?
Not only can you avoid fees, you can also save time, money and hassle by doing one simple thing -- shipping your luggage rather than bringing it to the airport. Business news site
BNet.com reports on this growing trend:
Kiplinger contends that there is a better way - ship your baggage using a service like Fedex or UPS instead. Sound crazy? That's what I thought at first too, but it actually makes a lot of sense. The price of sending a bag via Fedex, for example, varies between slightly more than checking a bag and dramatically cheaper, depending upon whether it's under or over the weight limits.
Here are some examples. Airfarewatchdog.com compiled a chart comparing the cost of sending bags of various weights via Delta, Southwest, and a couple of shipping services. A 25 pound suitcase from Chicago or Orlando would cost $17 via Fedex but $23 on Delta Airlines.
The difference is more pronounced if you check an over-weight bag. A 60 pound bag on that same route would cost $36 via Fedex but nearly $300 on Delta. Ouch.
And it's not just the price. Even if the prices are similar, you can at least trust that a bag shipped via UPS or Fedex will arrive on time. Can you say the same for your luggage when you fly?
No we can't. Spirit Airlines having the nerve to charge $45 for putting a carry-on bag into an overhead bin, combined with the airlines' unreliable, expensive checked bag service, creates no incentive for anyone to take a bag to the airport again.
Will you continue to check and carry on bags given these facts, or give up that habit and ship your luggage for your next trip?
Comments: (6)
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By: Sergio Ulloa on 4/09/2010 11:27PM
I really dont care how much I pay for a ticket,but one thing for sure,I will never fly your airline again. Never. And while you are at it,you could also charge $1.50 or $2.0 for using the toilett.
So long Spirit.
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By: ASteveLC on 4/11/2010 12:50AM
I wonder why FEDX and UPS having advertise that they can ship luggage cheaper and surely safer. I try not to ever have to check a luggage, and the reason is why, because I work for a major airline on the ramp. I see how some airline employees handle luggage, take item from the luggage. TSA employees are also stealing items. So don't ship or check anything in your luggage that you want to keep. Carry ALL your valuable with you.
I've notice that some people pack enormous amount of clothing for a few day trip. Remember you can wear the same thing nurmerous times, because no one will notice.
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By: JUNE on 4/11/2010 12:56AM
Never mind UPS and Fedex. Ship your bags thru the Post Offfice. I need my job!!
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By: sadie on 4/18/2010 8:06PM
Holy crap. I was just reading something about all the weird stuff people try to smuggle thru air tra vel,,,,,(hubpages.com/hub/You-put-what-in-your-pants),,,, But at least we can be comforted by the fact they'll have to pay more to do it.
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By: sadie on 4/18/2010 8:23PM
Holy crap. I was just reading something about all the weird stuff people try to smuggle thru air tra vel,,,,,(hubpages.com/hub/You-put-what-in-your-pants),,,, But at least we can be comforted by the fact they'll have to pay more to do it.
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By: sadie on 4/18/2010 8:13PM
Holy crap. I was just reading something about all the weird stuff people try to smuggle thru air tra vel,,,,,(hubpages.com/hub/You-put-what-in-your-pants),,,, But at least we can be comforted by the fact they'll have to pay more to do it.
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