Fasten your seatbelts

Memorandum to all expenses managers and accounting departments: the days of the economy air ticket that comes with a fixed sticker price are rapidly coming to an end. The world's airlines are determined to make as much money as they can from each and every seat in the flying real estate of an aircraft. Squeezing every penny airlines can from ordinary travellers is changing the definition of a standard economy seat. Is it the one with more comfort and legroom, or that offers the flexibility of changing the date or flight? Perhaps it is the economy class that gets you through security without having to wait in line for an hour, or the version with food and drink, or Wi-fi, or one that lets you sit next to your children, spouse, friends or business companions. I have not met a grocery retailer who charges you extra if you want your milk cold or with a cap PricewaterhouseCoopers has just produced a report in the United States that says airlines must view themselves in the same way as their customers do: "In today's competitive travel market, flyers are expecting airlines to behave more like retailers and less like a mode of transportation." Of course, PwC is begging a lot of questions. I have not met a grocery retailer who charges you extra if you want your milk cold or with a cap, less still one who sells milk today at $10 a bottle and tomorrow at $100, as airlines are prone to do as they realise the opportunities of internet booking. The report also compares the preferences of business travellers from the US, China and Britain, and of leisure travellers from the US and Brazil. It finds that the British are far keener on some important extras: 51 per cent of British business travellers will pay for greater seat space, while only 7 per cent of Americans and 2 per cent of Chinese will pay for that. British travellers will also pay more for priority treatments such as fast-track security queues and lounge access, with 7 per cent, against 3 per cent of Americans and 1 per cent of Chinese.The Chinese are clearly more geared up to electronic devices since 20 per cent of business travellers say they will pay extra for them, while only 6 per cent of Americans and 2 per cent of British business passengers are prepared to pay for power outlets and Wi-fi. British business travellers are also keener on being able to cancel and rebook their flights, with 46 per cent, while only 2 per cent of Americans and zero Chinese will pay for the ability to rebook. Here, there may be a difference in definitions. In the US, "non-refundable" tickets are actually refundable or can be changed with a fee, which is why flyers are upset that most US airlines have raised rebooking fees to US$150, which may be more than the ticket is worth. In Britain, non-refundable tickets are worth nothing if the journey is not taken, as a close friend found when her mother got too sick to travel to Mumbai from London. Even with a doctor's certificate saying she might die if she flew, the airline was unmoved and pocketed £1,000 (HK$12,560) without a word of regret. PwC suggests to the airlines that as flyers expect to pay for add-ons, airlines should make their lives easier by offering bundles that suit their travel needs without going overboard on their wallets. But this was where we came in. Air travel came in bundles, with a checked bag, a hand-carried item, food and drink and a pillow and blanket being part of the price of the air ticket. But then the airlines, led by the Americans, started to charge everything. I was going to say they started to nickel and dime everything, but last year the world's airlines racked up more than US$36 billion in so-called ancillary revenues. The report also suggests that airlines fall badly short in customer service compared with other service providers. PwC said that in the grocery business, 23 per cent of complaints went without being redressed, compared with 30 per cent for hotels, 40 per cent for retail banking, 45 per cent for the communications business and a massive 49 per cent for airlines. The report reminds airlines that their passengers like to keep in touch with their mobile devices and will quickly spread the word when things have gone good or bad. Even despite increasing consolidation in the airline business, 32 per cent of Americans, 42 per cent of British and 18 per cent of Chinese say they will not fly again with a carrier that treats them badly. The PwC report is full of interesting details and differences between international passengers. An airline seat is perhaps the ultimate perishable commodity: left empty, it yields zero revenue that literally flies away with the aircraft. But the real estate is not very flexible since you cannot offer differing legroom within the same row or easily put in armchairs for a flight where there is extra demand. Airlines have not shown much imagination in serving passengers. When I was told that you would have to pay for food, I thought it would be worth it to get a gourmet meal. But offering passengers a hot dog for US$7 and then telling them it is sold out is not even a one-star experience.

Fasten your seatbelts

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The days of an economy ticket with a fixed price are coming to an end as airlines are charging everything from extra legroom to power outlets

The days of an economy ticket with a fixed price are coming to an end as airlines are charging everything from extra legroom to power outlets