Sunday, April 15, 2007

Nickel and Dime Discrimination

Would You Like Engines With Your Flight?

According to Robert Mann, president of R.W. Mann & Company, airlines dropped meal services over security concerns. Later, they decided to make up for the lag in sales by turning it into a pay service. Airlines are beginning to charge an extra $10 for an assigned seat and another fee for changing your seat.

But, it's still going to be the same seat, whether you sit there or someone else does. This makes it price discrimination. The customer gets the exact same seat, but the price paid for that seat depends.

Some airlines, such as the European airline Ryan Air, are charging a 'handling fee' for purchasing tickets with a debit or credit card! Want to check your bags? That's $10 for two bags, and an extra $100 for a third. Yep. Same bag - same process of loading and unloading but if its the third bag, you're paying an extra $90.

1 comment:

KM said...

Excellent look at price discrimination! Airlines are easy to pick on - very much discriminatory in many ways.