Carry on Baggage Fees: An Idea Whose Time Has Come?
By Edward Lopez • Monday August 2, 2010 7:56 AM PDT • 2 Comments
From today’s Associated Press:
Spirit Airlines: no hitch with carry-on fees
By ANDREW VANACORE
August 2, 1010 7:06 am EDTNEW YORK — Spirit Airlines’ controversial carry-on fees took effect Sunday, catching some customers unhappily by surprise. But the low-fare carrier contends that the move will cut down on flight delays, potentially allowing Spirit to add new flights.
Spirit spokeswoman Misty Pinson said the new approach already appears to be working. “The check-in process is going well so far,” Pinson said Sunday afternoon. “It looks like this is going to speed things up.”
I first proposed this little idea in the February, 2000, issue of The Freeman.
As is, overhead bin space is allocated on a first come first served basis. A better system would allocate first to those with the highest value on time, risk-abatement, and comfort, and then to others who can claim left-over space or place them underfoot or simply check them in advance at the ticket counter.
[...]
Okay, this sounds good in theory, but what about the practical side? We can’t exactly expect people to run up and down the aisles shouting out their supply and demand prices for overhead bins. Talk about wasting time! But there is no reason to resort to this kind of barter solution. Instead, let’s capitalize on the airlines’ existing computerized information system to settle this for us. Airlines would sell overhead bin space as an add-on to a passenger ticket. “Would you like overhead space with that?” If you’re in a hurry, or you’re carrying something really valuable or breakable, you’re answer would very likely be “yes.” And you would pay a little extra for your ticket in order to ensure some overhead bin space. On the other hand, if you don’t want to pay the extra, just say “no” and go on your merry way to the baggage carousel. Soon enough, the airlines will balance out all the yes’s and no’s and reach an equilibrium overhead bin price, just like all other markets work when they are not overly regulated. Those who really value the space highly will get it, and those who do not will not. An efficient outcome.
Full article here: Mad Scramble at 30,000 Feet
Tags: Business, Economics, Free Market, Regulation, Transportation 
As someone who used to travel for work, the first come, first served rule kept the frequent flyers happy, we were the first to board. Charging an extra fee for carry ons would have pushed me to another airline (bonuses were dependent on expenses). I can see how people who don’t fly a lot might like this rule, but I think it will hurt them in the end.
MDB | Aug 3, 2010 | Reply
This argument proves that we have learned a lot from government. When government makes a mistake, they never go back and rectify that mistake, they pass a new law (and tax to go along with it) in an effort to ‘close the loophole’.
I have been traveling for work for nearly a decade now. Up until 4-5 years ago, there were no fees for checked baggage. The vast majority of passengers checked their bags, and over-head space was not really an issue (although I would appreciate it if you could learn to toss your bag up there and sit down! we’re waiting to get to our seat Mr. “I haveallday andnow youhavetowaitforme”). Today however, with checked baggage fees ratcheting up to the point where soon they will be equal to the cost of the ticket itself, everyone carries all of their bags onto the plane. SUPRISE – this has doubled the time necessary to board the plane, and has taken up all available luggage space before half of the passengers have even boarded the plane. Hum – cause and effect at work!
To make a few bucks (to offset rising costs, and diminishing profits), airlines have chosen this path, which is proving a failure, but in governmental fashion, the solution is not to reverse course and try something else, but rather to charge passengers to check bags, AND charge them to carry on bags. If a passenger chooses option “c” which is fly with no luggage at all – they will get to spend the afternoon with TAS what with the fact that if you have no luggage you must be a terrorist – and you’ll likely miss the plane anyway – but maybe that’s the ultimate goal – sell tickets, and prevent the customers from even getting to the gate – that’ll reduce boarding times.
I look forward to one day flying with the airline that chooses honesty, and simply charges an honest fare, and recognizes that passengers fly with luggage.
BTW, let’s not forget that all airlines already have a policy of “1 carry-on and 1- ‘personal’ item”, which would prevent overuse of overhead space, yet with the pay for checked baggage policy, airline personnel are reluctant to enforce this rule because passengers are already angry at the airline for the policy, and so passengers routinely carry on 3-4 items without raising an eyebrow.
joe4liberty | Aug 3, 2010 | Reply