Manizesto

If you fly much, you’ve probably noticed a huge upswing in add-on fees. Now you’ll often find yourself paying fees for phone reservations, cashing in frequent flyer miles, checking luggage or a pet, having a child sit on your lap, getting an assigned seat, and even fuel surcharges. It can be a frustrating experience. So why are so many airlines doing it?

Simple. They’ve lowered the barrier to entry to attract new business.

The fundamental shift in airline marketing from one of increasing comfort (more legroom, leather seats, etc) to one of lowering price has come pretty suddenly; and it’s a short term marketing strategy that won’t pay off in the long run.

First, you’re starting a price war. The customers you gain by lowering prices won’t have any loyalty to you, so as soon as another company sweeps in with lower rates, they’re gone. Now you’re losing margins and market share.

Second, you’re creating a frustrating customer experience. Even before a customer steps into the gate, they feel cheated, mislead and untrusting. It’s a complete set up for failure. Frustrated customers are much less likely to have a strong net promoter score and are much more likely to fly off the handle as soon as there is a slight problem or hiccup.

Third, you leave the door wide open for competitors. Southwest Airlines has taken advantage of the hidden fee trend by eliminating all of them from their flights. Sure, you may not always get the lowest price, but at least you know what you’ll be paying and not feel like a big, faceless company is trying to rip you off.

Don’t give in to the temptation to lower your entry price by including hidden fees. Be upfront, be truthful, put yourself in the shoes of consumers, keep it simple and think long term. You’ll create more loyalty and protect your business in the long run.

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