A New Fare System for Air Travel

The present system of pricing air travel may be antiquated. Airlines are developing new ways to price air travel and increase profitability. American Airlines will be offering an ‘a la carte’ fare system:

“…Starting next year, American, which led a stampede by U.S. carriers to charge customers for checking even a single suitcase, plans to imitate the a la carte pricing structure pioneered by Air Canada, airline officials say. There are likely to be a few basic fare plans, and travellers can pick additional services — for a fee.”

link: American Airlines Considers a La Carte Pricing

The task for airlines that use this system will be convincing the customers how it is value added. That is, how does it benefit the customer? With the changes in air travel, the advantage has been decidedly one sided. With the economic pressure and customer anger at these extra charges, the airlines may have to increase their public relations budget. The flying public does have a limit to what they will tolerate. This may be an opportunity for airlines such as Southwest Airlines, which as hung onto traditional measures such as service and loyalty.

Catherine Forsythe