In the past couple of weeks, we’ve seen most US airlines hike checked bag fees, in an effort to increase revenue during a very challenging time (due to high oil prices). American has just matched those checked bag fee increases, but is taking it to the next level, and is making basic economy much worse.
From the perspective of airlines, basic economy isn’t just about offering people lower fares who may otherwise fly other airlines, but instead, it’s about getting existing customers to pay more to avoid basic economy. In other words, basic economy is intended to be punitive, because airlines would ideally have all passengers avoid these fares.
When it comes to basic economy, airlines try to find the right balance between generating incremental business and making the fares punitive enough so that passengers want to avoid them. The math on punitive policies differs based on whether someone is an elite or non-elite passenger.
A great solo travel tip spotted this week on One Mile at a Time.
