From Chips to Movies - Airlines go á la Carte

Carry some extra cash as you prepare to go to the airport. More airlines are starting to charge for services that used to be free. United is just the latest to join this growing trend in the industry....

Airlines have been experimenting with this pricing model in select markets for over two year and are now expanding it to the domestic market.

The most recent example of this is United Airline's announcement that starting May 1, 2008, they will charge $25 per bag for coach passengers to check a second bag on all domestic flights.

In 2006 Northwest Airlines began charging $15 to reserve some of the better coach-class seats, like exit row seats on domestic flights. United Airlines charges a premium to sit in the Economy Plus section, which while still in coach, gives passengers an extra five inches of leg room.

Delta added a dedicated HBO channel to its in-flight entertainment system and is charging domestic passengers $5 per feature film and $2 for television programs. Meanwhile, nearly every carrier has done away with free onboard meals in coach on domestic flights, and instead has begun to charge for individual food and drink items – often at hotel mini-bar prices. American Airlines replaced its $4 snack boxes with offerings like Lay’s Stax Potato Crisps ($3), M&Ms ($3), and bottled water ($2) and sells them on domestic flights of two ours or longer. They are also offering $5 light meals like breakfast bagel sandwiches, Italian wraps, or Asian chicken salads on longer flights within the US.

Air Canada has perhaps taken the á la carte the furthest. For example, their cheapest fares come with only 50 percent of non-elite frequent flyer miles. Passengers can pick and choose from a list of add-ons like seat assignments and bag checking. Or, they can forgo those options for savings.

American has been experimenting with charging for all checked luggage in select domestic markets.

Airlines claim that it is a way to keep fares low while giving customers exactly what they want to pay for. But, charging separately for seats and services is also a way to increase their revenue, and is a tactic that is gaining in popularity among airlines looking for ways to dig out of bankruptcy or stay profitable.

While the airlines try to put a positive spin on this activity, they simply are trying to get more revenue without a major increase in ticket prices. In the end, the carriers are going to nickel and dime you into a higher total price.

Not all airlines are going á la carte. Continental is one of the few major carriers that offers hot meals on domestic flights and continues to have blankets and pillows available for passengers. JetBlue offers complimentary Dunkin’ Donuts coffee and satellite television on all of its flights, and has no plans to begin charging for these extras. Regional carrier Sun Country also continues to serve hot meals on their flights and does not charge for seat assignments or checked baggage.

What can we expect in the future? We can expect more and more carriers to unbundled services from the basic ticket price and we will pay for all the extras. This includes everything from a beverage on the plane to checked baggage to making an advanced seat assignment and even the frequent flyer miles – á la carte pricing is here to stay.