United Makes Plans to Drop 'Baggage Neutrality'
theodp writes "If you need a clue as to how creative ISP execs might get in the absence of network neutrality, look no further than United Airlines CEO Glenn Tilton, who is wowing Wall Street with his willingness to examine new ways to wring money out of the carrier, including making economy passengers pay a fee unless they want their luggage to come last off the plane." Now I think when i was like gold ultimate handjob elite years ago my bags had tags that usually made them come out first, but this seems just kinda crappy. I mean, remember when you got a meal on airplanes? No wonder people hate to fly.
Flying sucks because of all the security theater annoyance. I used not to check bags for more than half my trips, but now I have to check a bag every time because I don't feel like going through the annoyance of having my toiletries inspected at the security line. Fuck that shit. I now drive wherever possible.
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This doesn't seem like a neutrality issue to me.
Isn't this closer to a customer just paying for a lower latency connection?
The problem is the moves airlines make don't make sense if they wish to stay in buisness. In a competitive enviroment, buisnesses should be seeking to reduce their costs and increase the value a customer recieves. Charging to get your baggage first lowers the value of the product because while people who pay might get added value, the customer who is still paying the same ticket price gets less value by having their luggage no longer randomly come out. If the airlines were interested in being more competitve the correct move would be to offer flyers a discount if they don't mind their luggage coming out last. Removing meals from planes is the same thing. Reducing costs is only effective if you change the way you act internally and the product the public gets doesn't suffer.
If they do this, it'll just mean more and more people will try to push the limits of carry-on luggage, rather than pony up for another fee. And we all know how much fun it is to be stuck in the aisle, waiting to get off the plane, while some PHB wrestles a laptop bag and an extra-large "carry-on" from the overhead bin.
"Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."
... United Airlines CEO Glenn Tilton, who is wowing Wall Street with his willingness to examine new ways to wring money out of the carrier [CC], including making economy passengers pay a fee unless they want their luggage to come last off the plane.Let's think this through for a bit. At first, only a couple of people pay the fee. No biggee, and not much impact. Then someone, whose baggage came off last, notices the "priority tag" or whatever they use to identify the "don't take me off the plane last" tag. So s/he now ponies up for the fee from now on. Repeat for a few iterations. Now, nearly everybody has paid the fee, and they all come off just as before.
EXCEPT when some poor customer has paid the fee, AND his stuff comes off AFTER someone who did NOT. Guaranteed Upset Passenger.
The real kicker: what happens when someone:
Yep, sure sounds like <sarcasm>great customer service</sarcasm> to me. With increasingly ubiquitous video cameras, all it takes is a couple of postings to YouTube, a few blog posts, and then the REAL FUN begins!
Really, there are two issues with this. First, it seems that more people are using carry on anyway. In my experience flying, more carry on reduces the already dreadful flying experience. I see this as a competitive disincentive.
Second, I wonder if the cost of implementing such a plan, which would require marking and sorting bags, would be less than the additional revenue. This is the same question I have for the ISP. Will the costs of all the additional equipment really justify the additional fees such equipment would impose on the end user. Wouldn't it be better, like the airliines, to impose a fixed limit on throughput, and allow users to pay for more?
"She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
Ever since the increase in "security" after 9/11, I have done everything I can to avoid flying unless it's absolutely necessary. I've gotten pretty good at getting through the security gauntlet without an orifice probe -- playing dumb and cheerful seems to be the ticket -- but even then, most planes make the city bus feel like a luxury limo by comparison and airports seem to have been designed by a retired platform game designer. Add to that the bizarre security rituals, like the TSAA guard in New Jersey who banged my shoes against the floor before declaring, "Nope, no bomb in there," and if I can skip traveling, I will, and if I can't skip it, I'll drive. About the only reason I'll board a plane voluntarily now is to vacation abroad, and even then, I have to ask myself if it's worth the extra-special unlubricated scrutiny you get when returning from abroad.
So now my bags are going to be delayed a few minutes? Who gives a shit? That's like being told that in addition to being worked over for an hour by mafia goons, someone will now call you a sissy at the end of your beating.
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Proof: X is the base rate of a flight with unprioritized luggage delivery. The cost of having prioritized luggage delivery, per person, is Y.
Now you can either charge everyone X + Y and then offer a discount of Y to those who don't need it, or charge everyone X and offer a fee of Y to everyone who does need it. Either way, those who need it are paying X + Y and those who don't are paying X. However, offering it as an added fee gives the appearance of lower prices, which, if you're trying to stay competitive, is important. Removing meals from planes is the same thing. You can offer lower prices than your competition by not including meals in the base price. For those who don't want cold meat, or who don't eat that crap anyway, it's better incentive. It might make it marginally more expensive for those who do eat the meals (assuming it would cost less per person to have meals prepared for everyone than it would to prepare meals for only those who want it), but it would still be just as expensive if you were to offer the discount-method.
Or howabout more environmentally friendly and fuel efficient modes of transport, ie rail.
Monstar L
You don't get what you pay for, but you're required to pay anyway. As in:
1) You pay for homeowners' insurance only to find that your particular disaster isn't going to be covered. Just ask the people on the Gulf Coast.
2) You pay for a utility, like phone or cable, only to find that when you've got a problem or outage, you're without your service--not for hours, but for days or possibly even weeks. (Ever try to get a rebate from, say, your phone company when they take four days to send out a "technician" to spend twenty minutes fixing your trouble?)
3) You pay ever-increasing costs for your health insurance only to find that a catastrophic illness or accident leaves you in debt for years.
4) You pay for what is termed "unlimited" Internet services only to find that your ISP is cutting you back because they have a different idea of what constitutes "unlimited."
5) You earn your money, but you are required to pay the bank ever-increasing "fees" so that they can use it until you need it. In some cases, you even have to pay to speak with a human being (as opposed to an automated system) to receive an answer to your question.
We're all part of a vast pool of money to be tapped into at will, and the game is to return the bare minimum of value for what we're all willing (or able) to pay. Why should the airlines be any different? An interesting article appeared on CNN a couple of days ago. It seems the "working poor" are having increasing trouble making that paycheck stretch from one payday to the next--and the term "working poor" is now encroaching more and more into the "middle class." The Big Box Marts are starting to notice an impact to their bottom lines.
The airlines will find that fewer and fewer people can afford to fly, so they'll focus on ways to wring more out of the people who can still afford to fly. It's not surprising.
"Here's what's happening. You're starting to drive like your Dad..." - Red Green
This is not equivalent to net neutrality.
The analogous situation to no net neutrality would be to say the destination countries need to pay to guarantee good baggage delivery, so people don't associate them with lost baggage.
Charging the customer for better service is a perfectly acceptable way to handle getting more money, both the cable and phone companies do it.
Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
LOL. Great theory except for the mythical "discount of Y" and "lowering of prices once meals were eliminated". There was no lowering of prices, the meals were eliminated in an attempt to raise profits. Just like there won't be a discount of Y.
The *reality* is that you either receive less for your X, or you have to pay X+Y to get what you used to get.
The downside of this is that everyone will do what you do, which is cram as much stuff as possible into the overhead bins in order to keep from checking bags. This slows down the security lines and getting on and off the plane.
It does sound like a protection racket, tho. Maybe next will be:
"Would you like your bag to be handled extra-carefully? For a small fee we can make sure your bag doesn't get dropped or run over by a baggage cart, or maybe show up with the handles wrenched off. Heh-heh."
It's not about service, it's about something more valuable -- my time. I despise that first class passengers get to deboard before everyone else. They pay for bigger seats, better meals, whatever, but they should not get to buy my time away from me.
This is just another method for separating out the classes. Have money? We'll make your life more convenient at the inconvenience of everyone else. It's one thing to give people better service in exchange for value-add, it's another to create that value by taking from someone else.
CommentBot 0.7a running with args "-module irritate,disagree -target random"
I'm pretty sick of people using 9-11 as an excuse for everything from having to bomb Iran to having to wiretap Americans without warrants to giving corporations special taxpayer-funded benefits (only after they make large contributions to candidates, though).
Let's see, what else is happening with 9-11 as the excuse? Um, how about creating an ex post facto law to give telcos immunity from prosecution for having broken the law (even though the illegal act took place 6 months before 9-11?
Bullshit. 3000 people die and a nation of 300 million goes belly up?
Bullshit. We are being played.
You are welcome on my lawn.
It never ceases to amaze me how the pernicious nature of a government bailout is completely lost on the average American. Businesses have revenue and they have expenses. Revenue minus expenses equals profit. If profit is negative, then your business model is flawed. No amount of corporate handouts can change this basic, simple fact. It doesn't matter if United is $10 or $10 billion in debt--either they are making money or they aren't. If their basic model is sound, then they should have no problem lining up private financing to bridge the gap. If they aren't, and they have to rely on the government for help, then this should raise a red flag, because the entire private banking industry took a look and said no. Who do you trust more to make sound, rational economic decisions--a bunch of self-interested, economically motivated lenders, or, omfg, the United States Congress? I almost can't even type that without laughing aloud.
I think there is a world market for maybe five personal web logs.