In case you were wondering how big a difference it makes when airlines add a first checked bag fee, Continental has given us a bit of a clue: The carrier says that the new fee will generate $100 million in revenue and cost savings (the cost savings come from people not checking as much baggage because they have to pay for it). They don’t break out how much revenue is generated vs. how much cost is saved, but what’s interesting is that the biggest outcome of the first checked bag fee is probably that most people will only check one bag (rather than two) and that, in general, people will pack less stuff. Which makes me wonder what the hell I’ve been dragging around in my bags all these years.
Continental: New Bag Fee to Generate $100 Million
Trackbacks and Pingbacks:
- tripso.com | God bless Air Canada — they rescind baggage fees - Pingback on 2008/09/18/ 14:44