Economists Do It With Models

Warning: “graphic” content…

Bookmark and Share
More From the Land of Unintended Consequences…

June 12th, 2008 · 12 Comments
Uncategorized

As of today, two airlines have decided to start charging customers for all checked luggage. Okay, I get it, sort of- the airlines need to cover the increased cost of fuel, customers are more sensitive to base ticket prices than they are to the later add on components, especially when the point of purchase is once they’re already at the airport or on the plane, etc. BUT…hasn’t anyone at the airlines thought of the incentives that this creates for passengers? For a while now, airlines seem to have been steering people towards checking baggage, presumably because it makes the security checkpoint process more efficient (3-1-1 rule, anyone?) and the airline doesn’t run into the lovely situation where passengers are fighting for space in the overhead bins. (Not to mention the fact that it’s probably easier to smuggle something onto a plane when everyone is bringing boatloads of stuff with them.) Why would they now want to push people in the other direction? I suppose part of the answer is that the airline doesn’t bear the direct cost for the security checkpoint hassle. However, I would argue that if you are making your lines longer and slower than those at other terminals for other airlines, you’re going to lose customers in the long run. People are already displeased enough with airline customer service as it is, is it really worth a few $15 pieces of checked baggage to make it worse?

You may ask how this is different from charging for a movie or snack on the plane, since this strategy has seemed to work out okay. That answer is simple- your decision whether to purchase a snack on the plane doesn’t affect me, whereas your bag that previously would have been checked but is now being examined in line in front of me and pushed on top of my stuff in the overhead bin does. (And there will be some of these bags, since not everyone will pay the $15.) So the aitlines are potentially inconveniencing all passegers regardless of whether they choose to pay the $15 to check their bags.

Tags: Uncategorized

12 responses so far ↓

  • 1 driving school Horsham // Oct 28, 2011 at 9:24 pm

    It has taken me a long time to find your website. Finally. This is just the info I was looking for.

  • 2 Janine1178 // Dec 2, 2011 at 11:56 pm

    I needed to write you the very little word in order to say thank you once again for your personal remarkable opinions you’ve documented on this page. It was so unbelievably open-handed with people like you to grant publicly all that a number of people could possibly have marketed for an electronic book in making some cash for their own end, precisely now that you could have done it in the event you wanted. Those secrets additionally worked to become a great way to fully grasp that other people have the identical fervor similar to my own to find out more concerning this issue. I believe there are millions of more pleasant opportunities up front for individuals who examine your blog.

  • 3 Audio Equipment Tips // May 16, 2012 at 7:15 am

    The post is written in very a good manner and it entails many useful information for me. I am happy to find your distinguished way of writing the post. Now you make it easy for me to understand and implement the concept.

  • 4 Money Worksheets For 2Nd Grade // Mar 9, 2014 at 6:26 am

    In the 19century, it was revealed by the National
    Guard after last week’s quarterly forecasts showed that the economy is still
    exposed to constant danger. 3 million urban households as
    against 1. Brazil and India and their low-capita incomes keeps some business analysts and investors, contrary to United States for
    the 2009-10 school year with 1.

    My blog post :: Money Worksheets For 2Nd Grade

  • 5 man cologne // Oct 19, 2014 at 6:36 pm

    Fantastic goods from you, man. I have understand your stuff previous
    to and you’re just extremely magnificent. I actually like what
    you have acquired here, certainly like what you are saying
    and the way in which you say it. You make it enjoyable and
    you still take care of to keep it wise. I can’t wait to
    read far more from you. This is really a great web site.

  • 6 islington restaurants // May 3, 2015 at 2:29 pm

    This tax is applied at a rate of 1% of the first $200,000 purchase price, and 2% of every dollar
    thereafter. But to make the opposite genders clash would be a terrible idea, this could
    also be a realization to both genders that maybe there were impulsive actions that we do which we happily pursue not knowing what could be the damages
    given to those persons affected. If you are
    a first time home buyer, there is no doubt that your real estate agent introduced
    you to this type of insurance. A: I can recommend several reliable customer service-oriented lenders who can assist first-time buyers in getting pre-approved.
    In order to be eligible for these types of loans, your income will need to be below a certain level,
    which varies by area, family size, and house. With his outstanding negotiating skills, as well
    as extensive experience in this industry, he is the only person that
    you need to assist you in finding your dream home in East Hampton.

  • 7 islington restaurants // May 21, 2015 at 6:26 am

    ‘Learning we pre-qualified for the Welcome Home Illinois program really opened the door to the possibility of homeownership for us.
    Be sure to check the contract details on any grant or loan you’re thinking
    about applying for, to prevent you from running into real financial trouble later.
    If you don’t understand a term or any of the jargon involved in real estate, then by all means ask your lender or
    broker for clarification. Because of this, Dallas, TX mortgages are now being investigated by
    new home buyers. In fact, because of that, Denver was recently
    recognized for being #1 in the nation for shortest time on market.
    These can include electrical and structural issues.

  • 8 Angry Birds Stars Wars hack // Nov 19, 2015 at 5:48 am

    What’s up, all is going well here and ofcourse every one is sharing data, that’s actually good, keep up writing.

  • 9 Megapolis Hack // Nov 23, 2015 at 1:36 am

    Very great post. I simply stumbled upon your weblog and wanted to say that I’ve really enjoyed surfing around your
    blog posts. In any case I will be subscribing in your feed and I’m hoping you write again soon!

  • 10 Deer Hunter Hack // Nov 23, 2015 at 5:11 am

    I think that everything said was actually very reasonable.
    But, think about this, suppose you added a little information? I am not
    suggesting your information isn’t solid, however suppose you added a headline that
    makes people want more? I mean More From the Land
    of Unintended Consequences is kinda vanilla. You ought to look at Yahoo’s
    front page and note how they write article titles to
    get people interested. You might add a related video or a picture
    or two to grab readers interested about what you’ve got to say.
    Just my opinion, it would bring your posts a
    little bit more interesting.

  • 11 Forge Of Empires hack // Dec 28, 2015 at 8:49 am

    I believe what you typed made a lot of sense. However, what about this?
    suppose you wrote a catchier post title? I am not saying
    your information isn’t solid, however suppose you added a
    post title to possibly get a person’s attention? I mean More From the Land of Unintended Consequences is a little
    vanilla. You ought to peek at Yahoo’s front page and see how
    they create post titles to get viewers to click.
    You might try adding a video or a picture or two to grab
    people interested about what you’ve got to say. Just my opinion,
    it would make your website a little livelier.

  • 12 Regal free trial // Dec 29, 2015 at 7:03 am

    I tend not to drop a great deal of remarks,but i did a ffew searching and wound
    up here More From the Land of Unintended Consequences. And I actually do have 2 questions for you if it’s
    allright. Could itt be just me or does it appear like a few of the comments
    come across like coming from brain deawd folks? 😛 And,
    if you are posting on aeditional online sites, I’d
    like to keep up with anything new yoou have to post.
    Would you make a list of the compllete urls of all your communal pages like
    your twittr feed, Facebook page oor linkedin profile?

    Loook aat my page; Regal free trial

Leave a Comment