In Defense of Fees

I honestly did not think I would write those words.

But anyway - there was a hearing here in DC yesterday about ancillary revenue. Of course, Spirit Airlines was a big topic of discussion because they're the closest thing we have to Ryanair here in the States. As a result, they charge for nearly anything. What's caused particular attention in the press is the airline's decision to begin charging up to $45 for a carry-on bag. But other airlines have been raked through the coals as well.

I'll be honest - I'm not the biggest fan of paying extra for things. I'm pretty sure everyone else would agree they prefer free things as well. But I just don't like the way some fees are being portrayed in the media. For example, this Good Morning America video piece tries to portray an upgrade fee as a big surprise. Um, why? Were you expecting to go to the ticket counter, and get an upgrade to first class no questions asked?

Now I'm not saying fees are popular - but airlines should have a choice as to what they want to charge. Likewise we as the consumer have the ultimate power. Don't want to pay for bags? Well, look at Southwest or JetBlue, for example. And while others might criticize Spirit in the press for fees, other travelers might still like them. For example, a friend of mine and his girlfriend are going on vacation on Spirit soon. They knew about all the fees, but even after that they still came out ahead compared to other airlines. So what's exactly the big deal here?

So here's my main point - yes, fees are annoying. But they've become and important source of revenue for the airlines. And often despite what consumers say, most booking decisions are made based on price and schedule, not fees.

I agree with members of Congress who feel that airlines can be more transparent about fees, though. And I think some carriers are getting better about it, but unfortunately they still have a ways to go. If you want to compare carriers, I'd highly recommend this handy chart of all the domestic fees from the folks at FareCompare.