Sunday, April 14, 2013

Carry-on v. Checked Luggage and Incentives



Velocity is the key to making money for the airlines. An airplane on the ground does not make money. Turn the airplane around as quickly as possible to make the most amount of money. Yet, by charging for checked bags, airlines have taken away the incentive for checking bags. Thus, many travelers use a carry-on bag, slowing boarding, slowing velocity.

Spirit Airlines now charges for carry-on bags. The charge though, is less than for a checked bag. Passengers on Spirit, then, still do not have an incentive to put up with the inconvenience of checking their bags, walking to baggage claim, waiting, and hoping their bag is not lost.

American Airlines is experimenting with letting passengers without carry-on luggage to board the airplane before those who do. Not having to stand in the aisle as people in front of you try to put their carry-ons in the overhead bins is not much of a benefit, but it is a start.

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