
Is the ¡®Nickel and Dime¡¯ Strategy Working for the Airlines?
If you¡¯ve gone on a trip recently that involved air travel, you probably noticed that extra fees abound. Airlines now charge for luggage, meals, blankets, pillows, headsets, even water. And yet a recent survey by Airfarewatchdog.com, a fare-tracking site, found that 16 percent of respondents said they would pay extra to be the first one off the plane. Have the airlines gone too far with the extra fees, or are they on to something? Would other industries be wise to follow the airlines¡¯ lead?
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1) They Have to Make Money Somehow
If travelers don't like the extra fees, they have no one but themselves to blame.
2) Give the Customers What They Want
Major airlines have figured out how to charge customers for what they want. Too bad my cable company hasn't taken the hint.
3) Just Make Sure the Fees Are Fair
Some fees can work, some of the time, but they must be palatable to customers, and they must work in the context of the business.