It is no secret that airline fees made up a total of $3.36 billion in 2011 [Time] for U.S. carriers. So charging for additional conveniences has its merits to the airline industry, not even factoring in the whole skirting the tax issue [View From the Wing] benefits. However, the question I have been asking for years is whether airline baggage fees are hurting the tourism industry as a whole?
I realize the airline industry is probably the most difficult industry to make a buck. One of my favorite infographs created to highlight the airline industry was from Frugal Dad, and the article How Airlines Spend Your Airfare [Wall Street Journal], both which really help to explain why it is so hard to make any money flying planes. So when you think about what it costs an airline to actually handle your bag (equipment, additional employees, insurance and loss claims), it makes sense for them to charge additional fees.
The problem I have always experienced is the trickle down effect to the tourism industry that is counting on travelers spending money on souvenirs.
Not only is money tighter in our family due to the economy, but also due to our family growing larger and older. So when we travel, we need to be mindful of how much stuff can fit in our luggage. In the old days of no baggage fees, I remember sometimes going and purchasing an extra cheap luggage bag just to transport back souvenirs. However, the reality of bringing back souvenirs while traveling long disappeared the moment airlines started charging customers to transport their goods back home.
Alaska Airlines to Allow Wine
I was delighted to read an article this week on USA Today featuring how Wine flies free as part of Alaska Airlines tourism promotion. The gist of the article is that effective September 1, 2012, Alaska Airlines, and it’s sister company Horizon Air, will allow guest to check their wine purchases free of charge at the Yakima, Walla Walla and Pasco/Tri-Cities airports in Washington State.
The promotion will be in place for two years, and also includes a free tasting upon presenting a valid Alaska Airlines boarding pass within 10 days.
What is even better news is that Enterprise rental car is getting into the promotion too by
“…waiv[ing] “drop-off fees” for travelers who pick up a rental car at one of the three airports but return it at one of the other two.”
Alaska Airlines move to work with the wine tourism industry is a huge step in the right direction to helping everyone make money from the mighty tourism dollar. The wine makers obviously come out ahead by selling more bottles when guests know they can bring it home with them without incurring additional shipping fees. Alaska Airlines come out ahead because guests will get smart and factor in the free shipping policy on wine when booking their tickets.
I realize how baggage fees play a vital role in the profitability of the airlines, but sharing in the wealth seems to be a logical business decision to continue to encourage families to travel.
Save Money, Travel More!