Oscar Munoz, United Airlines’ CEO, argues that confusion drives passengers to complain about baggage fees. While I tend to agree with his overall point, the optics of insinuating that higher baggage fees improve the flying experience for the average passenger is simply tone deaf.
Speaking to CNBC’s Jim Cramer, Munoz credited ancillary fees from baggage as the source for United’s improved investment in its onboard soft and hard product.
It is important to reinvest in the business. I think it’s one of the things about this industry that people, our customers, don’t always understand. All that money that we’re getting back is being piled back into the business…We pile that money back into the business for the right things. We want to make you, as our customer, feel good about flying us. And so our customer-centricity, our customer properties, are something we really want to sort of engage.
I have no idea what he means in his last sentence, but I do not dismiss his overall point. It is undoubtedly true that United is reinvesting at least a portion of these ancillary fees in the customer experience. Much of this spending may be focused on the premium-side with new Polaris lounges and Polaris business class seats onboard, but United is also in the process of updating its wi-fi systems and now boasts in-seat power on all mainline aircraft. Furthermore, it has invested millions in its hub airports across the country. That does indeed help all passengers.
Even so, I’m not sure there is any way this argument passes the smell test with most passengers. And as unfair as that may be, I would rather make the unbundling argument (“charging for things like checked baggage and meals helps us to offer you cheaper tickets”) coupled with a separate argument that United continues to invest in the passenger experience.
CONCLUSION
This is a bit of a damned-if-you-don’t, damned-if-you-do situation. Explaining away a sudden increase in checked baggage fees is not easy. But most will not take the time to understand Munoz’s point. Successful argumentation is often not about having the strongest argument, but about succinctly articulating a point that resonates without much thought.
H/T: Jeff Edwards / Flyertalk // image: NBC (fair use exception)
This is so insulting towards passengers.
I paid $86 to secure seats for my parents for an upcoming flight since they do not gaurantee sitting together. Thats just one way. It’s highway robbery. I will never use United again.
I agree seat selection fees are ridiculously expensive on United, but American isn’t much better in this regard. Out of the legacies, Delta seems to have the most reasonable seat selection fees.
They aren’t spending much on Dulles.
So insulting. If that were true, they’d use those ancillary fees to eliminate Basic Economy. Other than increasing seat pitch, I think that’s the most customer-friendly move they could make right now.
Perhaps if the extra baggage fee was put back into getting rid of “basic economy” or even the comfort of the economy passengers instead of adding tables to a VIP lounge, we, the customers, would listen to your spiel. As it stands, my last 3 flights have been American and Delta and I used my built up mileage for hotels.
I hate this puke Oscar Munoz. I only fly the worst airline, United, becase I am in SFO and its the one airline with a lot of routes. After hitting 25k miles, I fly ANYTHING ELSE whenever possible. The only way to be treated partially human is with silver on Untied. Spirit, Frontier are about the only ones like United.
AA isn’t any better. In fact they’re “trying hard” to be worse.
But it would never improve the nast attitude of many flight attendants towards passengers in the coach class.
It would never, stop killing pets, sexual harrasment by the drunks on women, use to improve baggage handling services (because the handlers are paid less) unless you travel Polaris business and the overall United experience.
When I travel Turkish, Singapore, Thai and Eva with United starting at IAH-IST-SIN-CMB-SIN-TPE-IAH on business (all 773’s)…non US airlines are a level or two above US based airlines.
The absolute best was Singapore Airlines but Turkish and EVA are not far behind.
I go out of my way to avoid United. They’re, without a doubt tone deaf. Great to invest in the experience, but I would bet most are not worried about things like the Polaris lounges and would find greater satisfaction in a cheaper ticket overall. Everything feels nickel and dimed and catered to the more wealthy or business traveler. Surprised? Personally, I like cheaper because it causes me to travel more often. I despise PAYING more than “average joe” because I am taller and have trouble with leg room on longer flights. I miss the days of first come first serve. The dollar shouldn’t always drive customer preference.