American, and now Frontier, are said to be ready to roll out an "unbundled" fare structures. What this means is that if you have a bundle of cash in your wallet when you arrive at the airport the airline wants you to "unbundle" it and hand it over. What this really means is that you will be charged extra for everything. If you want frequent flyer miles you will pay extra. If you want your favorite aisle seat in the front half of the plane you will pay extra. Exit rows will cost more as well. You are already
paying extra for luggage and meals, but this is just the beginning.
If American and Frontier go to this type of pricing, and both are expected to do so before the end of the year, you can expect to see all major carriers follow. The only exception will be Southwest. They have an aggressive ad campaign telling the world they will not charge extra fees. My guess is that Southwest wishes they never started this campaign. Like every other carrier, Southwest is looking for more revenue, and "unbundled" pricing appears to be the only way to find this revenue.
We all know most airlines are charging to check luggage. Jay Leno says he understands that several carriers will now start charging for emotional baggage as well.
How's Business?
With all of the fun and games on Wall Street the last several weeks I have been asked by many customers and/or golf buddies about how business at Polk Majestic Travel is holding up. I am please to report that we are doing just fine. No, we are not growing at the 25 percent to 40 percent rate we have grown each of the last five years, but sales through September are up 9 percent. With all things considered, I think we need to count our lucky stars.
Robert Polk is CEO of Polk Majestic Travel Group in Denver. These insights are excerpted from Robert's weekly newsletter
, From the Desk of Robert A. Polk.