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Subscribe to RSSUpdated Feb. 16, 2:15 p.m. ET -- As of 10 a.m. ET on Thursday, all major U.S. airlines -- legacy and low-cost -- matched the $10 roundtrip price hike, Rick Seaney said in an e-mail.
Published Feb. 15 -- If airfares suddenly seem higher, look no further than Southwest Airlines, which, according to Rick Seaney, CEO of FareCompare.com, initiated a fare hike of $10 roundtrip ($5 one-way) early Wednesday. If history repeats itself, other airlines are likely to follow suit.
The move represents the third attempted fare hike of the year, coming on the heels of two in January. Both of those were led by Delta Air Lines, but only the first one was matched by the competition.
This time around, Seaney expects other airlines to match Southwest’s increase within hours, noting that in the last six years, there hasn’t been a single Southwest-initiated hike that went unmatched.
“I’d expect the other airlines to follow quickly,” he told msnbc.com. “It’s like what we in Texas call ducks on a June bug.”
Even so, he doesn’t foresee a drastic run-up in airfares: “The airlines had a difficult time raising fares last year — less than half went through — and it may be as hard or harder this year.”
Given the price of oil — $101 per barrel this week, up nearly 20 percent from this time last year — there’s little doubt that the airlines would like to raise fares. However, with consumers feeling a similar pinch, any increases will likely be countered by decreasing demand.
“I don’t get a sense that consumers feel like their wallets are any fatter than they were last year,” said Seaney. “Airlines have to fill every empty middle seat and the folks who’d be sitting in those seats are among the most price-sensitive.”
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Rob Lovitt is a longtime travel writer who still believes the journey is as important as the destination. Follow him at Twitter.
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Airfares today are ABSOLUTELY RIDICULOUS!! They say "bags fly free" WRONG!! It's included in the HIGH ticket price.........they think people don't see that? Southwest IS stupid then!!!
No, what's ridiculous is not the fares, it's what you get...or rather don't get .....for the fares.
1. Take two or three rows of seats out, and reconfigure so that my f**king knees aren't up under my chin.
2. Publish and enforce a policy that prevents a bunch of a**holes from taking all of the overhead bin space with their giant "carry ons", so they don't have to be "inconvenienced" by actually waiting for checked luggage at the carousel. Limit=one bag that will fit under the seat, if necessary. Also, prevent the jackass sitting in the last row from storing his carry on over the first row, so it's convenient for his lazy ass to get it down when the plane lands.
3. Put up a sound wall in front of the last few rows of seats, and reserve the area for those travelling with screaming kids.
4. Disable the reclining control on all seats.
5. Install a drop tray in the wall in front of the bulkhead seats.
6. Serve decent drinks if you're going to charge a king's ransom for them.
They grew to be the biggest airline in the country and profitably without having to go bankrupt along the way and they are "stupid" .
Their prices are generally lower than other airlines who charge fees for bags. When you add in the bag fee from the other airline, you are pretty much guaranteed Southwest is going to be cheaper...
No, but recent moves by SW is counter to the way they grew and became so successful. As they become bigger, they are acting in the same manner as the bigger airlines that many so despise.
It's ok fellas! Just unbundle more of your prices and continue with deceptive practices like charging for everything imaginable once we buy the ticket and cannot refund them
Maybe charge for carry-on and maybe charge a "convenience fee" for using a website to purchase! Maybe charge for using the restroom on the plane or for having a seat that reclines!
Perhaps your whole business model is ridiculous and you're in a price war because you all offer equally awful service and treat your customers like cattle
The airlines have "tied down" a lot of their planes to increase "supply & demand". I use to fly extensivly for both business & vacations. I don't anymore. I adjust my time to drive now instead. Some stratigic planning on these inept CEO's would be in order to properly take care of the consumer, insted of being the blood sucking leaches that they are. When they started charging for luggage, that was the last straw. What are you suppose to do, stick your toothbrush in your pocket?( Can't do that, it could be construed as a lethal weapon). Much less a change of clothing. The airlines have crossed the line of no return. But, Howard Hugh's would be proud of ya. Use to be, if you had to make an emergency flight for a death in the family, they would accommendate you, now they want to chare you double. Want a blanket or pillow, ok, it will cost you 10 bucks more for each (and that is per person). Turn the heat up you idiots & nobody will need a blanket.
The airlines "foster up" reasons for price increases, for their own lack of good management.
It's all Southwest's fault. They spoiled u with the $39.95 fares, cheaper than driving, cheaper than taking Greyhound. But of course that was when oil was $29/barrel, now that's $100, oh well, but the public don't care about that.
Just like the music industry and the oil companies, I have ZERO empathy for the airline industry.
I would totally agree with AJ...I have never seen a dumber business model. They bring all of this on themselves.
DM7741 .. What the hell are you talking about "dumb business model"? and when explaining, make sure you don't lump in SWA and a few other budget carriers who don't charge BS fees for bags if that's part of your gripe. If it's dumb, then perhaps you can share with us how they can make it "not dumb", they profit, and you fly at a "reasonable cost" ... BTW in your world, what is a "reasonable cost" in 2012 say from Denver to LAX? Should this cost be for the budget vacationer buying 4 months in advance only? What about the business traveller who has to fly on a day's notice? Should he fly cheaply, too? Should he pay for part of your budget ticket? I ask this because in this day of blame those with money for all of the problems and make them pay for all the needs of those who don't have money, I wonder.
Most every business charges more when demand get's high or nears capacity or for same-day service. If you want to get mad at airlines for their pricing methods, then you'll have to get mad at many other business sectors as well. It's supply and demand, and it works and in the end it assures you can purchase what you can/will afford. Sometimes it works out good for you, the consumer, sometimes for the business.
I travel a lot for work, (>40% travel), and after flying almost every airline, Southwest is by far the cheapest, and easiest to deal with in terms of changing flights last minute. I'm going to New Orleans friday with my girlfriend for free on points, on the busiest time of the year for New Orleans, so not bad in my opinion. I couldn't do that with my 50k points from American, even 6 months ago when I made the reservations.
Are you really complaining about $10? Really? $10 is what you spend in an airport for a drink, or less than a day of parking at said airport. With the disparity in pricing between southwest and other airlines, I would think that people would give southwest the benefit of the doubt.
Oil is expensive people, and jets use a lot of it. I'll wager that most people who are posting "yeahhhh, what BS, those D-Bags" and "stop bundling and inflating prices" etc. don't travel nearly as much as I do, or much at all by plane. Keep your unrealistic, ill-informed comments to yourself.
Well said...I fly SW all the time and have not had any major problems...usually the problems are created by inexperienced travelers that expect the airline to make up for their mistakes.
Alas, Southwest did indeed enter the fray by significantly undercutting their competitors. This in turn forced those other airlines to lower their prices on routes that they flew in the same marketplace as Southwest. Although prices have escalated over the years, I always try to fly Southwest because should they ever be forced out of business I know that airfares will immediately rise to new heights. Southwest has saved many of us travelers thousands of dollars over the years and I for one appreciate it.
Southwest is not the lowest fare. Used to be but not anymore. It is an illusion perpetrated by Southwest and the media. They say they don't sell tickets on Orbitz or Travelocity in order to keep fares low when the real reason is they don't want their fares compared to the other airlines. Yes add in the bag fees of the legacy airlines and there may be a slight difference but the majority of travelers have carry-on. Southwest as they are portrayed is a myth, I would rather fly Delta or United. Southwest is the most highly unionized airline in the country and they pay their workers the most. They are not doing this by charging the least!
Other airlines match fares in routes Southwest flies...always have. You want a real comparison, try IAH to DTW vs HOU to DET...or IAH to ORD vs IAH to MDW...or try Houston Intercontinental (IAH) to Boston (BOS) vs Houston Hobby (HOU) to Providence, RI (PVD)...see if it's worth the short drive in a rent car.
Why should workers be paid less to give you a cheap flight ,go out an earn more if you cant afford to fly you mooch!
Actually, I always check prices on several sites, andrarely is southwest not the cheapest... If they arent, its by only a few bucks...
Add in the bag fees (I always have at least 1) and they are considerably cheaper...
Also, Delta and United both suck horribly, let alone have the highest prices in most areas...
Now, what do you think is causing these increases? Could it be the price of oil? Did you really think the airline was not going to pass the increase in the price of oil on to the consumer?
But, by all means, save those sand dunes in the Dakotas.
who cares? it's $5. get over it. southwest is incredible- free bags, lowest prices posted on tuesdays, and no cancellation fees. it doesn't get better than that. i only fly southwest for a reason.
i fly southwest 50 rd trips per year. All I can say is they suck less than united and 10 dollars won't make a difference. they could even charge more than united, they would still suck less. reasons ? lots of flights stay on time don't steal your bags very often.
"hey we got higher profits last quarter than expected...so lets raise the rates, again!"
http://www.reuters.com/article/2012/01/19/us-southwest-idUSTRE80I0XN20120119
People are funny. The airlines raise fares because oil prices are very high -- 20% higher than last year. Nevertheless, SWA manages to make $152 Million.
But, the oil companies, who act innocently when they tell everyone, "We're just passing on the costs," manage to make $10 BILLION in just one quarter!!! Yet, like lemmings, people just gleefully fill up at the pump, hardly uttering a word of complaint.
Don't let the airlines make a profit, though.
@ Zman17
Problem is that we're not supposed to talk about the elephant in the room
Don't you know...that 10billion in quarterly earnings goes 110% into further exploration?! That's why they need all of those subsidies and to pay almost nothing in income taxes! HAHAHAHA...NOT!!!
The point is, our government, like many others, are owned by the oil companies...we cannot do anything to switch away from them because we've allowed far too many politicians with vested interests in such to put the country on a track that has at the very least left us overly dependent on a single type of energy source.
zman, I think you're saying that in addition to paying an increase of 20% in fuel costs for the year, they still had a record quarter.
http://www.reuters.com/article/2012/01/19/us-southwest-idUSTRE80I0XN20120119
Least it's only $10.
Does customer service also go up with these prices?
It's merely testing the waters. Take a look at the wording in the article regarding how a similar price hike was attempted last year, but failed.
If the increase holds without significantly denting demand, you will see that it is just the beginning until they find the outer edge of the envelope
Three of us just flew from BWI to Orlando on Southwest. It was under $600 for it all. I looked at other airlines and couldn't get it any cheaper than $800, and that was before the $100 in bag fees I would have had to pay. I fly SWA all the time, find them the cheapest, no bag fees, still free snacks and drinks and usually arrive ahead of schedule.
Pretty much if Southwest doesn't fly there, we don't go. Or, we fly Southwest to a more distant airport and then drive the rental car farther to our actual destination. I have yet to pay for my baggage, since I have yet to fly on one of those other airlines. Maybe the jerks will figure out that consumers are avoiding them, then they will rescind their extra charges for baggage.
Hey Southwest Lovers perhaps Goba can help you out! Goba is giving away a $500 Southwest gift card to one user in February just because we love Southwest! Check it out: goba.co/xPAEXF
I'm lucky that I can drive anywhere I need to go. My family lives close and any vacation locations I want to visit are within a days driving time. I vacationed in Jamaica and St. Marteen a few years ago, and have no desire to go anywhere now that I can't drive to. Life is changing fast, and I have reached an age where I want a slower pace for my life. No more rat racing around.