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How to Stretch Your Business Travel Dollar
The airline industry is struggling -- no secret there. Rising fuel costs have raised ticket prices to uncomfortable levels, for travelers and airlines. In their battle to keep ticket costs low, carriers have decided to travel the fee route, charging extra for everything from peanuts to pillows.
Amenities once thought of as free perks no longer exist or have a price tag. Bags might as well require their own tickets. First it was a charge for the second checked bag; now most airlines charge $15 or more for the first one.
Entrepreneurs who travel a lot will have to find new and creative ways to save as they navigate the increasingly complex skies.
"Airlines will trim the fat and put the price tag on the amenities before they raise the ticket cost," says Gabe Saglie, senior editor of Travelzoo, a Web site dedicated to travel deals, tips and trends. "That's why JetBlue (BLU) charges $7 for a pillow. I don't doubt airlines will pick premium seats and tag on extra fees to them."
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Pretzels and cookies are a thing of the past for economy class on United Airlines (UAUA). And its free lunches for domestic business class passengers disappear Oct. 1. But consumers will ultimately let the airlines know their limits. In early September, United Airlines addressed passengers' concerns when it scrapped a plan to charge $9 for a sandwich on international flights.
Expect More Cutbacks
In the next six to 12 months, consumers will see even more dramatic cutbacks -- on the heels of the eight biggest airlines slashing 26,000 jobs and taking 465 planes out of service because of high fuel costs and record losses. "Airlines are so much in the red they have to limit capacity and up fares 15% to really become solvent again," Saglie says. "I think we'll see a lot of mergers and scrapped services. Things like meals and blankets will be the first to go."
