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Give Us Your Personal Data Or Pay Full Fare
ebh writes "Noted in an AP story about how fees make it difficult to compare air travel costs, is how the airline industry is moving toward tailoring offer packages (and presumably, fares) for individuals based on their personal information. Worse, 'The airline association said consumers who choose not to supply personal information would still be able to see fares and purchase tickets, though consumer advocates said those fares would probably be at the "rack rate" — the travel industry's term for full price, before any discounts.'"
Amazon do personal pricing. They won't give you a price for some things unless you login. Then they give you a price that is the maximum they think you will pay. Other people see lower prices.
The aim of personal pricing is to milk you for more money to maximize profit, not for some kind of altruism. It's all about 'how much can this customer pay right now for that item'.
Now when companies get together to implement this, this is known as a price fixing cartel. It DOES NOT require them to have a fixed price, the mere act of agreeing to deceive customers on the price, is enough to be a crime under cartel acts. So if they're doing this because they've agreed to, then you look at price fixing cartel laws to see how to fix it.
But make no mistake, when they won't tell you the price for something, its not for your benefit.
Once they see the contents of your wallet... they can adjust the prices they offer to you to maximize their intake of your cash and minimize those aforementioned contents of your wallet. That's the real key to profitability with personal pricing: find out how MUCH they are willing to pay for what they want. So it's only to their benefit to know how much money you're playing with (how good your credit is, how many other expensive things you've bought before, whether you're a customer they'd like to take on or someone they want to go away).
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There is NO benefit for customers from this at all that I can see.
In Europe, the price tag you see is what you pay. It makes so much sense. I don't care what the before tax price is. Hidden fees are illegal. This includes buying airline tickets. The North American system where you see some price, then have to guess what you will have to pay is arcane, bordering fraudulent. If you go to aircanada.com, I have to click through to the last step before actually purchasing the ticket to see what the real price is. Often the final price is double what was initially quoted. If I go to lufthansa.com, the fees are already included in the price, so easy. I remember getting a mobile phone contract in Canada, where I was surprised to discover that the actual monthly price was significantly higher than what I was quoted, even though I specifically asked exactly what the final price after all fees was. I eventually switch to prepaid, because I hated the idea that the phone company can dictate what I have to pay, regardless of what I agreed to.
If it wasn't being used for something, it wouldn't be the price to get less expensive groceries.
Also, do you want to be the house showing up in a database as always ordering lots of "middle eastern" food? Or the house always buying lots of food that your insurer may not like you consuming, like chips and soda? Or the house buying lots of alcohol that your car insurer might like to know about? I mean, what -- do you really think they're keeping all your data just to mail you the weekly flyer that they're going to send to every house *anyway*, as "current resident"?
They just keep piling it on, adding reasons not to have anything to do with air travel.
Having to pay big $$$ for parking at a lot that is still a 10 minute bus ride from the terminal
Having to wait maybe 15 minutes for that bus
Having to wait maybe 15 minutes for that bus at 24 degrees or 105 degrees
Overpriced food at terminals
TSA stealing stuff from your luggage
TSA thinking they have the right to lay hands on you
TSA thinking they have the right to x-ray you (only my Dr. and dentist...)
Late planes
Late planes when you have to catch a connection
1/2 hr sprints thru big airports 'cuz your plane was late for the connection
Lost luggage
45 minutes to retrieve luggage after plane lands
Arriving 2 hrs early 'cuz of TSA
Narrow airplane seats
Fees for blankets
Fees for pillows
Fees for food
Fees for checked baggage
Fees for carry on baggage
Having to rent a car when you get there
Paying for wi-fi in the airport
Have given up flying for anyplace I can get to with my car. About the only good thing left about flying and airports is Cinnabon.
I don't know why people are modding you down because you are right. All through the 80s and 90s when I flew, your carryon was limited to very specific size measurements. I had a rucksack that I could take when I flew to The Netherlands, but, every single time, upon return, KLM's carryon sizes were smaller. Occasionally, if the flight was not full, they'd let me take it on, but most of the time it had to be checked.
The last time I flew (Denver to New York) the carryon luggage was the size of regular luggage and I saw people literally punching the bags to fit into the overhead bin. I had a backpack and my netbook, both of which fit right under the seat in front of me. Somewhere along the lines, they just started letting people take whatever they wanted into the cabin and now they're forced to deal with it because it's become a huge issue.
Like you, I don't like my stuff out of my sight. I pack extremely light because of this. A good rule of thumb for people taking on carryon luggage, if you cannot personally lift it over your head, by yourself, then it's too damned big and should be checked.
How many data mining tokens er loyalty cards are in your wallet?
Four. Only one (currently) in my name. Every now and then I randomly swap them with friends to poison the (dis)loyalty well.
We've established the nature of the relationship, we're now just haggling over the cost...
The cost: Give me your best price without playing games, or I'll go to your competition.
Although the "premium" airlines might not get it yet, the likes of JetBlue and SouthWest most assuredly do.
And y'know, I don't always mind the nickel-and-dime approach, within reason. They just need to limit it to what really costs them money, rather than getting petty. Weight costs money, so baggage costs money. I tend to travel light, so by all means, charge an extra $50 to the morons who could sneak Grandma on in their ginormous bags. Soda, OTOH, costs less than fuel. Charge me a buck for a half-can, and you can bet your ass I'll bring my own with me from the terminal (where it only costs half-insane)