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Checked baggage fees – The daily blog of behavioral and cognitive economics

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Checked baggage fees – The daily blog of behavioral and cognitive economics

Why a Bigger Baggage Bin Is Like a New Highway

Like JetBlue and Alaska Airlines, American just boosted its checked bag fee. American and United said they would charge us $40 a bag at the airport and $35 if we paid, beforehand, online. Up from $30, it is a whopping one-third increase for American.So yes, airlines project more revenue. But also, they can expect more demand for the overhead bin. During May 2008, American Airlines was the first legacy carrier to impose the “checked-bag fee.” Because they charged us $15 for the first bag, we had the incentive to check less and carry more on the plane. ….[READ]

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