Open Enrollment | Subscribe to Target Marketing HERE
Connect
Follow us on
Advertisement
 

Add-on Fees. Good or Bad?

Using competitors’ fees to your benefit.

December 10, 2013 By Denny Hatch
6
Get the Flash Player to see this rotator.
 

Below is the headline and lede of The New York Times story about the Ryanair add-on fees uproar that triggered this column:

Ryanair, Scorned in Europe, Turns on the Charm
LONDON — Charging 60 euros, or $82, for carry-on bags deemed too large to go in the cabin. Assessing a penalty of €70, or almost $100, for not checking in online. Bombarding passengers who take a 6:15 a.m. plane with in-flight announcements hawking everything, including snacks, lottery tickets and smokeless cigarettes.

Michael O'Leary, the chief executive of the budget airline Ryanair, has vowed to address the criticisms that have made his carrier, Europe's biggest and most profitable, its most reviled.
—Nicola Clark, Oct. 28, 2013

Have a look at the first image in the media player at upper right. Ryanair CEO Michael O'Leary comes off as the quintessential practitioner of nitwittery. Naturally customers feel ripped off when their wallets are pried open by this buffoon.

Quite simply, add-on fees can be explained by good ole-fashioned professional P.R.

Whining Over Fees
After Peggy and I returned from a recent trip, we had dinner with a lawyer friend. I found myself bitching about US Airways charging us an extra $25 per checked bag. Want choice seats on US Airways? Expect to pay an extra $5-$99. Soft drinks and coffee or tea are free, but food and alcoholic beverages are extra.

Our friend's sane, soothing advice:

Think of airfare as the starting point. For example, a train ticket or a bus fare guarantees you a seat from Point A to Point B. That's what you contract for. Everything else is extra—a drink or sandwich in the café car, a red cap to help you with your bags or a sleeper.

When I thought about it, this made absolute sense.

Traveling one-way between New York and Philly, Amtrak is the way to go. Fares (for seniors) run from $45.05 to $191 for premium seating on the deluxe Acela.

Hate Amtrak prices? We have friends who are hooked on the no-frills Bolt Bus. One-way cost (all ages) is a paltry $12 or $13. Actually you enjoy two frills: plenty of legroom and free WiFi. However in a traffic tie-up, the trip can take three hours or more. (See the second image in the media player at right.)

 
6

SPONSORED CONTENT

MORE ON DATABASE & CRM >>

FROM THE BOOKSTORE

As important as email marketing is, being an expert at it is no easy task. But do not fret. Email Marketing 2014 provides the trends and best practices you need to follow. You'll find: 21 email trends charts featuring data from Who's Mailing What!Analysis of 11 effective cross-channel emails Best practices covering everything from email copywriting and design to data, metrics, CRM, deliverability and more4 email case studies Email Marketing 2014 Trends, Best Practices & Case Studies

As important as email marketing is, being an expert at it is no easy task. But do not fret. Email Marketing 2014 provides the trends and best practices you need to follow. You'll find: 21 email trends charts featuring data from Who's Mailing What!Analysis of 11 effective cross-channel emails Best practices...

ORDER NOW

This PDF book explores a range of marketing metrics and seek to help marketers to answer such questions as:  What metrics to use to determine whether your marketing/advertising programs are accountable? And is it a waste of money, hence a danger to the company, if your marketing strategy and executions are not accountable? How to calculate how much you can afford to spend to acquire a customer or make a sale. And how can you calculate the customer’s lifetime value? How to understand the relative economics between customer acquisition, retention and CRM. How to measure the funnel process and which improvements will have the most impact.Your download of this book will also include model templates that you can use to immediately calculate and increase profitability for all your marketing efforts.  Profiting from the Magic of Marketing Metrics

This PDF book explores a range of marketing metrics and seek to help marketers to answer such questions as: What metrics to use to determine whether your marketing/advertising programs are accountable? And is it a waste of money, hence a danger to the company, if your marketing strategy and executions...

ORDER NOW

 

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments: