Fallout from 'A La Carte' Pricing?

That flyers object to the array of new fees that traditional hub-and-spoke airlines have imposed of late is no secret, but is it actually influencing their buying decisions? A new study indicates it could.

ComScore (Web site: www.comscore.com) has released a study that finds discount airline Southwest sells nearly 2.5 times the dollar volume of online tickets at its site as its nearest competitor, and has expanded its share of online ticket sales made directly at airline sites by 4.8 percent.

So, what's the tie to the new fees carriers are imposing to try to gain incremental revenue and market share? In a prepared release, ComScore contends: “part of its growth in share coincides with the imposition of additional fees for services such as checking luggage and in-flight beverages charged by the majority of competing [airlines].”

It's no coincidence that Southwest is trumpeting its “Freedom from Fees” policy in television ads across the country. ComScore Vice President Kevin Levitt says: “Southwest Airlines appears to have successfully differentiated itself through its marketing position of 'no hidden fees.' Effectively bolstering its online ticket sales and increasing its market share.”

One of the reasons why Southwest can afford (at least for now) to eschew those fees is the fact that it runs perhaps the most successful fuel-hedge operation in the airline industry. It effectively pays significantly less for more of its Jet A propellant than other airlines.

© Cheapflights Ltd Jerry Chandler