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How the Most-Hated Airline Fee Became a Huge Success
Posted by: Brad Tuttle, Wednesday, Dec 21, 2011, 3:58 PM

croppedplane.jpg
Spirit Airlines (Courtesy skinnylawyer/Flickr)

By charging passengers fees for carry-on bags, Spirit Airlines rakes in a whopping $50 million annually.

When we first reported the news that Spirit Airlines would charge for carry-ons, readers unleashed their outrage in the comments section. One example:

This is just another reason not to fly this airline, which is the worst I've ever seen in terms of nickel and diming customers. They charge for water, assigned seats, checked luggage and now carry ons. Their prices may look cheaper than other airlines on the surface, but add in all these costs, and they're no longer such a budget option.

Now, a little over a year later, the consulting firm IdeaWorks has published a study analyzing the effects of Spirit's decision to charge for carry-on bags. Travelers may have hoped Spirit's a la carte, charge-for-everything business model would prove to be a failure, but actually, just the opposite is true.

In the 12-month period after Spirit introduced its carry-on fees, 24.5 percent more passengers flew with the carrier. It's estimated that roughly 20 percent of Spirit's passengers elect to pay the carry-on baggage fee, which ranges from $20 to $45 per bag. When added up, the fees generate some $50 million per year for the airline.

Spirit has drawn plenty of heat for its checked-baggage fees. U.S. Senator Chuck Schumer (D-NY) called the fees "a slap in the face to travelers," and convinced several airlines to refuse to follow Spirit's lead. More recently, a bill has been introduced that would force all airlines flying in the U.S. to allow one carry-on and one checked bag free of charge for all passengers.

It's up in the air whether the bill will ever become law. One thing looks fairly certain, though: Based on how lucrative Spirit's fee structure seems to be, the airline isn't going to stop nickel and diming customers anytime soon. Not unless it's forced to stop, that is.

MORE FROM BUDGET TRAVEL:
Introducing the $450 Checked Baggage Fee

What's the Strangest Travel Fee You've Encountered?

DOT Secretary on Spirit Air: 'I don't think they care about their customers

Reader Comments

I wish all airlines charge passengers for carry-ons, for check bags, for assigned seating, so it lowers the cost for the traveler like myself; who doesn't give a flying fickle on where i sit, who doesn't travel with a check-bag, who only travel with a carry on that fits under the seat in front of me. It really makes me mad especially during the deplane process, watching everyone trying to get their oversized carry on crap in the overhead bin, slowly deplaning and holding up every row behind them, then complain and whine about fees. I wanna punch you in the face for making me pay the same price as you when you travel like an idiot.

Posted By frank on December 21, 2011, 5:43 PM

Wow, someone has some rage issues. I will pay extra not to sit by Frank on my next flight!

Posted By Jessica on December 22, 2011, 5:41 PM

Frank is in a vast minority of people who can travel with only a bag that fits under the seat, but I bet his trips are no longer than 1 day.

Let's see him try going on a week's vacation with only that bag he puts under the seat.

Posted By Pine Island Joe on December 27, 2011, 7:28 AM

Spirit may be making money off these fees, but it surely isn't from me. I would never fly any airline that charged me for a carry-on and I have never paid one cent to check a bag. Since I'm rather petite and I usually end up walking around and taking public transportation when I get to my destination for a couple of hours before I get to the hotel, I only carry on what I can carry around, which isn't much [meaning I don't jam oversized bags that I can't physically get in and out of the overhead compartment!] I can, and have, packed for a week's vacation in one bag. I see no reason why a person should be charged for a carry-on if it's a reasonable size. The people that are trying to pass off huge pieces of checked luggage as carry-on, now THOSE are the ones that should be charged because they're taking up what little space is in those overhead compartments with one bag!

But I guess this is all a moot point since I don't fly any more either unless I'm going overseas, thanks to the TSA and the general crappiness of the airline industry and the way they treat passengers these days. So the airlines are seeing even less of my money!

Posted By Liz on December 27, 2011, 9:15 AM

I agree with these posters. Airlines should charge people for carrying anything that doesn't fit in that little box they have in the boarding area, but not those of us with sensible bags. And ladies: we can save half the baggage fees by taking almost nothing on vacation, then buying a few new clothes when we get there :) And USPS, I hope you're listening. You could get yourself out of debt by finding an efficient way to ship baggage from hometown to hotel and back, so people can avoid baggage fees and (more importantly) schlepping bags through airports and taxis.

Posted By s2kreno on January 4, 2012, 2:25 PM

s2kreno, good idea about taking almost nothing on vacation, and buying new clothes, but where are you going to pack the new clothes on your return home?

Posted By dcr on January 9, 2012, 4:13 PM

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