The latest trick of many airlines is to segregate elements of their product cost
– Introducing the “Fuel Surcharge”
Apparently this provides pricing transparency. Thanks Mr Airline, but we know the price of oil is rising.
Isn’t fuel a fundamental input cost for airlines? (30%)
Do they think we care what their input costs are?
Do they realize that we’d rather the total price – no tricks?
Do they know it reduces ‘trust’ in their brand and industry?
And just to show my total disdain for fragmented and aggregated pricing here’s a few questions I’d like to propose to the airline Industry:
Does Nike have a shoe lace surcharge?
Does Ford charge extra for the steering wheel?
Does Coke have an aluminum can surcharge?
Does Nokia charge extra for the buttons on the cell phone?
Fuel is not an ‘optional extra’. So work it out, include it and charge us a price. That’s what business is…. Businesses are meant to be working this stuff out to reduce the complexity in our lives. That’s what business does.
No wonder airlines have the highest business failure rate of any industry, and the worst profitability of any Industry in history. (which by the way is a net negative over the past 100 years)
Start up blog says: Consumers hate ‘Oh, by the way’ charges. Avoid them at all costs.