You Need Your Nose…
… and you’re cutting it off, to spite your face.
This morning’s Anchorage Daily News contained this piece which describes Alaska Airlines decision to begin charging for even the first checked bag on most flights.
Bad idea. Really bad.
I suppose if you’re some airline revenue guru, this makes some sense – a way to recover $15 per passenger each way on most routes… since on most routes, most people check a bag. I just traveled to Washington, DC on Alaska Airlines, and I checked a bag. And that makes sense, I was there for ten days.
Thirty bucks. Cha-Ching.
But here’s the thing… Alaska Airlines isn’t any airline. It is our airline. Alaskans are very loyal. They fly Alaska even though other carriers are often cheaper to the same destinations. Alaskans want to earn Alaska Airlines miles. They don’t want Delta miles. They don’t want USAir miles. If you have doubts about how important Alaska Airlines is to Alaskans, ask the Alaska Airlines folks what happened when they decided to change their logo and remove the smiling face from the tail of their planes. It was Alaskans – all 500,000 of us – that objected. Alaska Airlines is a part of the Alaskan identity… even if the company is headquartered in Seattle. When you mess with Alaska Airlines, you’re messing with us.
As the owner of an Alaskan business, I do all I can to direct business to Alaska Airlines because the Alaska Airlines experience is superior to other airlines. My guests are happier and are treated better on Alaska Airlines. Let’s face it, ten hours on an airplane is taxing even for people who like to fly, so anything we can do to make that part of the process more pleasant for our guests makes it better for us and our business… There’s no sense starting off your vacation any more unhappy or uncomfortable than you have to be… And happy customers are repeat customers.
If you took Marketing 101, you know that what Alaska Airlines has done is to differentiate themselves in the marketplace – that is, create the perception with consumers that the experience you get with Alaska Airlines is not like the experience that you get with others. There is a benefit that you get with flying Alaska Airlines, and for many customers that benefit is worth paying for. It certainly has worked to keep Alaskans loyal for all these years. But what the revenue guys will tell you is that isn’t the way many consumers buy their airline tickets. What matters for those consumers is the price of the fare.
Where consumers are damaged, and where companies like Alaska Vacation Store are damaged is that the experience is downgraded when customers are presented with what they believe are hidden costs. Certainly one can’t argue that Alaska’s new policy is a hidden cost, but for the same consumer who worries about a $5 difference in fare, getting hit with a $15 charge for checked baggage he or she doesn’t expect negatively affects the perception of the experience.
It would be naive to think that travelers today expect the same level of amenities that were available on a plane years ago… and there is some sense in the “pay to play” mindset – I would add that I heartily applaud Alaska Airlines adding on-board WiFi to their fleet. But there is a substantive difference between charging for value-added items, like WiFi, or DigEPlayers or even a sandwich or beverages, and charging to bring your basic clothing and toiletries on the plane.
The other day, one of our clients came into the office to pick up his airline ticket, and he asked us about the policies regarding taking his prescriptions on board the plane. He uses several creams and ointments that come in tubes and bottles that are larger than one can carry onto the plane, because of the security rules imposed by the Transportation Security Administration (TSA). His solution was to put a day or two supply of the different drugs in empty film canisters, and then place the remainder of his prescriptions in his checked bag. As it was, he had no other option except to check a bag, since he couldn’t bring the existing containers on the plane. Now, he will be charged $15 each way for the privilege.
Southwest Airlines is making hay on these different revenue generators. As they should – they understand that there is a certain basic level of service that you should expect when you travel, and those things that go beyond basic… well, you pay extra for those.
All of the airlines that have taken to charging for all bags are coming dangerously close to crossing the line between pay-for-play and failing to provide a basic and expected part of the service. As much as I didn’t like it when airlines started charging for a second bag, I was resigned to the fact that certain passengers have abused the privilege in the past (count me as one) and this was a fair and equitable way to increase revenue and discourage that abuse. Charging for any checked bag seems petty and unfair.
Until now, I hadn’t really worried about this issue, because my airline still offered one free bag. But now that has changed.
So to Alaska Airlines, I have this to say: You’ve spent your entire existence working hard to set yourself apart from the rest of the industry. You’ve owned and embraced what is important about being an Alaskan, and being a part of our community, and you have spread that Alaskan hospitality across the country. You’ve asked us to be loyal to you, and we have – even when it meant spending a few more dollars to travel with you as opposed to another carrier. Alaskans understand, perhaps more than most, that there are costs associated with doing business, and that times are tough. And don’t get me wrong – this isn’t about $15. It is about treating your friends and neighbors like… well… your friends and neighbors. The message you send by charging $15 for the first bag is that really, you’re just like the rest of them. It won’t be long before Alaskans realize that if it is really only about getting between here and there, then any old airplane will do. We’ll cram everything we can into our carry-ons. We won’t check bags, we’ll fly Continental’s red-eye to Seattle and take Southwest the rest of the way… because that will be the cheapest way to go. If you need the $15, then raise your fares $15. Alaskans will stick with you. Just please, don’t tell us that you’re just like the rest of them.
On the tail of every one of your planes is the beautiful face of an Alaskan. It is the face Alaskans fought to keep on your planes back in 1988, and it is a symbol of Alaskan hospitality across America.
Imagine what it will look like without a nose.
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