Feb 19, 2009

New airline pricing...




While most people believe that this is not the best time to travel around the world, the truth is that I deffend exactly the opposite! As a matter of fact, now that the economy is still trying to find its way to the stability that it always had in the past, the airlines and most Hotels are offering us better prices to fight crisis... Below is another msnbc.com article which will you help you understand the situation:


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By Susan Stellin
Whether you call the practice à la carte pricing or nickel-and-diming passengers, the fees most airlines now charge for everything from food and drinks to checked bags aren't going away. With far fewer people flying because of the economy — especially business travelers — many carriers are counting on this revenue more than ever.

"The airlines are doing it because they can't raise fares," says Michael Boyd, president of aviation consulting firm Boyd Group International.

And the companies have found that add-ons can be very profitable. In fact, à la carte pricing has become so successful that analysts are predicting airlines may soon institute the even more nitpicky menu-pricing structure that's been helping Air Canada survive since 2004. For all of its flights, Air Canada offers four fare options, each with a different set of extras, such as a free checked bag or an on-board food voucher. Customers can then add or subtract other services — forgo frequent-flier miles and save $3, for instance, or pay $30 to access the airline's lounges.

For now, most carriers in the U.S. simply say they are sticking with the à la carte approach and considering tacking on more fees in the year to come. So what does this mean for passengers? "