Fliers go for cheap fares, with a la carte fees for bags, food

ByABC News
November 12, 2008, 12:01 AM

— -- More than half of US air travelers now prefer buying the cheapest available ticket, then paying fees for "extras" such as food and drink, preferred seating and checking bags.

According to a new survey that captures for the first time U.S. travelers' sentiments about à la carte pricing, many consumers do dislike the concept. The survey, done for Amadeus North America, shows that 85% of air travelers don't like having to pay extra for services that used to be included in their fare.

But a majority of travelers 52% now understand why airlines are moving to à la carte pricing, and do see some consumer value in it.

In fact, 53% say that when presented with a choice of buying an all-inclusive service or unbundled services, they would buy the lowest-price ticket available, then pay extra only for the services they value. Only 18% said they prefer buying a basic fare in which the fees for services are embedded.

Other survey results:

28% say they will pay above-average prices for noticeably better services; 40% say they won't.

49% say checking a bag should stay part of the basic fare; 17% say pillows and blankets should; 15% say seat selection; and 14% say food and beverages.

The results were "a bit affirming to us, in that consumers feel that there are some services that they now pay for which really do add value to their travel experience," says Robert Buckman, Amadeus North America's director of airline distribution strategies. Amadeus is one of the three big computerized travel sales systems used by airlines and travel agents.

Airline managers view à la carte pricing as a way of growing revenue in an intensely price-competitive industry at a time they can't push through fare increases fast enough to offset rising costs.

But "airlines walk a very narrow line in how they roll out ancillary services so that it does not seem to the consumer like nickel-and-diming, and more like a true value-add," said Buckman.

In any case, the pricing approach is certain to continue expanding rapidly.