Picking the perfect seat can make or break your client’s flight experience. That is, unless they can afford to spend on business or first class. Fully mindful of the importance of getting a good seat, especially on a long-haul flight, more and more airlines will allow passengers to pick their seat only by paying for the privilege.
For low-cost carriers, initial pricing that excludes the allocation of a seat is often justified due to the low initial fare. By charging an additional fee for choice, these carriers can keep unallocated seats at a reasonable ticket price.
But now, airlines continue to charge for previously included services, calling them ‘ancillaries’. A wave of unbundling across every type of airline means more passengers are having to pay extra to choose their seat, even 24 hours before the flight; they may have to pay for a meal or snack; and they may now have to pay for baggage in ticket classes that did not previously charge.
A recent Harvard Business School review confirms that ‘drip pricing’ is an effective sales tactic, both for confusing customers and driving up overall prices. This research examines how drip pricing – a strategy whereby a company advertises only part of a product’s price upfront and then reveals additional mandatory or optional fees as the consumer proceeds through the buying process. This affects consumer choice and customer satisfaction.
There are some little-known facts about paid-for seating.
*On most airlines where there is a charge for selected seating, paid seating is not guaranteed if the aircraft’s seat configurations are changed for operational, safety or security reasons, even after boarding the aircraft.
*If the client changes their mind, and changes their seat for a lower-priced seat, the airline will not refund the difference in price.
*If the client changes their seat to a higher-priced seat, they must pay the difference in price.
*Paid seating is not transferable to any other passenger.
*Seating fees for flights that are cancelled by the airline will not be refunded.
Nicki Bramley, Senior Travel Consultant at Giltedge Travel, said, like other agents, she had observed that unlike change fees and cancellation fees, which many airlines recently suspended, baggage charges and seating charges are coming in via ‘drip pricing’ for previously free services.
“They show the lowest fares possible on search results, then force the upsell during check-out for both seating and baggage. Some carriers like KLM and British Airways will quote the cheapest fare in the GDS on long-haul flights with zero baggage. What are the chances that a client is flying to Europe from South Africa with zero baggage? Do they not even consider that our market might be different? Seating charges are a rip-off; clients are paying ridiculous amounts of money on top of their airfare just to avoid sitting in the middle seats of the plane. It is misleading and it borders on unethical behaviour from airlines who are advertising cheaper upfront airfares to compete with one another.”
Boet Kreiken Executive Vice President of Customer Experience at KLM told Travel News that while passengers had the same need for mobility (getting from A to B) travellers’ wants and needs differed, and the way they travelled and the reason why people travel was significant.
“Why pay more if you travel without baggage and a light fare could do the job? The whole airline market-demand game has been lifted to a much higher level of sophistication. Markets want choice like our advanced distribution of product, price and services from the airline as a supplier. In bundling and unbundling you win and you lose. The key is to satisfy our customer demand and offer fair and affordable market prices.
“Basically, it transforms KLM’s company offering and production delivery. Current travel culture requires higher levels of personalisation for individual clients. It is far more complex than just charging for products, services and conditions, from both a consumer demand perspective and also the perspective of making our airline competitive.”
How do South African agents feel about drip pricing? Send your comments to the Editor, katen@nowmedia.co.za
