US Airways has retreated from a new pricing policy that charged passengers $2 for sodas and juices and $1 for coffee. The airline implemented an a la carte pricing strategy to charge customers fees for refreshments, services like checking baggage, and choice seat locations. The visions of dollar signs danced in the heads of US Airways management as it was projected that $500 million could be realized from implementing the additional charges.
It seems US Airways overlooked two important matters. First and foremost, it did not seem to think through what customer reaction to the perception of being nickeled and dimed (or in this case dollared) for drinks that were complimentary previously. Management saw revenues; what it should have seen was customer resentment. Second, US Airways should have realized it would stand out for all the wrong reasons if competitors did not follow suit. Years of fare wars should have been enough for US Airways to know that competitors that do not match price increases leave the one airline that did in a unfavorable position.
So, if you are on a US Airways flight soon, be sure to enjoy your complimentary beverage. You can take comfort in knowing that US Airways really wanted to charge you for your drink, but at least for the time being it does not have the competitive leverage to do it.
Link: Bloomberg.com – “US Airways to Stop Charging for Onboard Sodas, Coffee”target=”blank”
I’ve never flown US Air, so i don’t have a preconception about their service, but i noticed when they started charging for those things. It’s funny to see them go back on it, realizing the dollars wouldn’t come pouring in.
I suppose the business class might not be so put off by it(maybe they are), but speaking as a leisure traveler, i can assure you i would be. I do not expect airlines to revert to it’s glory days, with a attractive young woman offering a hot towel, but there is a minimum level of service that i expect from an airline. Besides, as a leisure traveler, my flight is supposed to be enjoyable. If it is not going to be enjoyable, it at least shouldn’t be a burden.
The way airlines are operated these days, i would much rather take a train somewhere(if it was even an option in the south). Until then, i will continue to use the low cost airlines, which seem to understand their clients better. No fancy service=no extra charges.