Airlines are leaving money on the table,
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I am sitting on a flight to San Diego watching a frustrated business traveler work up a sweat by trying to maneuver his carry on into the overhead compartment. He has been at this now for 5 minutes strategically repositioning bags and then testing his upper body strength by pushing on his bag as hard as he can.
A business traveler realizes substantial benefit by being able to easily stow a carry on bag. Two of the most obvious benefits are the ability to exit the airport without waiting at a baggage carousel and not having to deal with lost luggage prior to an important engagement,
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It's easy to see that these benefits are substantial given that every time you get on a moderately filled flight the overhead compartments are packed to the brim. Given that there is so much value being delivered to customers through a fixed capacity resource, it makes sense to place a fee for roll on bags. Assuming 10% of Air Canada's 2010 passenger count paid a $20 fee,
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If airlines were going to implement a roll on baggage fee they would have to guarantee that customers had reserved placement on the aircraft. In addition,
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Accountants and cost based pricers may be cringing at the prospect of forcing customers to check bags given that the airline may incur incremental labor costs related to handling luggage. It is probably cost based pricers that implemented a checked baggage fee driving more people to chase after scarce,
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If your company is able to move away from a customer cost focus and instead focus on value,
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