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airline pricing trends?
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DtotheJ is Online
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Default airline pricing trends? - 27-05-08, 02:55 PM

American Airlines Introduce New First Bag Fee; Could Start a Trend
By Julia Bonelli
12:42, May 24th 2008



American Airlines Introduce New First Bag Fee; Could Start a Trend
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Last Friday marked the beginning of the summer travel season, but things do not sound too good for travelers, since several airlines announced more or higher fees.

Previously this week American Airlines announced that it would begin implementing a 15 dollars fee for travelers’ first checked bag, that is passengers would be charged for all their luggage, a measure that is expected to be followed by other airlines too.

As American Airlines passengers will have to pay 15 dollars for their first bag and 25 dollars for the second one, this could be the beginning of an industry-wide trend, as airlines struggle to cover rising fuel costs.

The change will go into effect only for tickets bought after the middle of June, but people already are frustrated and infuriated, saying that is not fair to charge for an extra bag in order to make up for the surging fuel prices.

Analysts fear that the new fee would possibly negatively affect the travel experience, as the appliance of the charge will delay the check –in process and will congest the flow within the airports.

However, the new move doesn’t bring only bad things. The Loews Hotels announced that they would introduce the new "Baggage Buy Back" incentive, which will reimburse guests for their 15 dollars checked baggage fee.

"In just the last few months, airlines have added myriad new fees to cover rising fuel prices," said Jonathan Tisch, Chairman and CEO of Loews Hotels. "At Loews Hotels, we want to demonstrate to our guests how much we appreciate their business and one way we can do this is by helping them rein in some of the hidden costs of travel that are becoming
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