News that JetBlue is dropping a free checked bag for those who purchase its cheapest fares is making the rounds. Speculation had been running rampant that the airline would make such a move with a drumbeat of analysts and pundits wondering why the airline was continuing to leave money on the table by not doing so. Personally, I’ve always liked JetBlue’s model when it comes to bag fees. I think one bag is (should be) an inherent part of the travel experience and it should be included in the fare. Obviously, the rest of the airline industry in the USA disagrees with me, except Southwest. And that leads me to ponder…..will they add checked bag fees?
I don’t think there’s any near-term chance that Southwest does so. They’ve built a considerable bit of brand awareness around “bags fly free” and there may be value in that. However, as an airline with costs that aren’t exactly the lowest in the business, the revenue attraction may prove too difficult to ignore in the longer term. What’s standing between Southwest and checked bag fees? Well, there’s that “bags fly free” brand awareness I mentioned, which my very well have bought them some business. I can imagine the Twitter uproar that comes if they make a change. What else? I can’t help but wonder whether the airlines well-known antiquated IT issues prevents them from charging for bags even if they wanted to do it.
In the end, I doubt we see bag fees from Southwest anytime soon. But the perception that the airline is just leaving money on the table that it could be collecting may prove too difficult to ignore over time. What do you think?
-MJ, November 20, 2014
If they add bag and changes fees, they will be like all the other crappy airlines. Worse, actually, because they’ll be compared to Spirit which also does not offer assigned seats. At the point, I will choose based on price and schedule, and there goes any loyalty to them.
I don’t fly WN, and have no intention of ever doing so. Therefore, I really don’t have any personal stake in whether or not they add bag fees (and I don’t think they will anytime soon). Having said that, I hope they do add bag fees eventually, simply because I’d enjoy watching the s***storm on Twitter and FT. đŸ˜€
@Brian,
Hahahaha!
They will add bag fees by the end of 2016, no doubt. Kelly promised a big increase in profits (I think two or four fold) and that’s the quickest way to do it. And he didn’t rule that out as a way to do it, he just said in the near term we won’t.
Mika,
I should write a best blog comment ever post and just cc this into it! đŸ™‚
I think Southwest needs to really drive home the message of no bag or change fees. I bet most people checking in with most airlines paying for bag fees, not liking that they have to pay for it; do not really realize in their mind that Southwest has no bag fees. Southwest needs to understand in the purchase process why more people don’t go to Southwest unless they enjoy paying bag and change fees. I think they need to do behavioral interviews with customers at the other airlines and find out why people aren’t flying with Southwest. Some of it… Read more »