Ryanair is following on the heels of low-cost competitor Flybe in introducing charges for hold baggage and internet check-in. Some mainline competitors already offer online check-in, but the moves by Ryanair and Flybe are the first in the European low-cost sector.
From the middle of March, Ryanair will charge £5 ($8.75) for each bag checked in at the airport, reduced to £2.50 for online check-in, slightly more than Flybe, which is charging £4 and £2 for the same service. Like Flybe, Ryanair says it will reduce fares to neutralise the effects of the charges overall, and benefit passengers with cabin baggage only. Both carriers have doubled the cabin baggage allowance to 10kg (22lb).
Flybe introduced its own baggage check-in system for bookings in December, effective for flights from February this year. The carrier’s commercial officer, Mike Rutter, says that consumer reaction has been positive. “Historically, around 60% of passengers have checked-in luggage, early indications are that this level has stayed pretty stable at around 57%. There is no issue with customer acceptance,” he says.
He estimates the actual number of passengers who are paying at the airport for baggage check-in is around 2-5%, and adds that there has been no increase in check-in times. “We catch people as they come through the doors, and divide them into pre-paid and un-paid,” explains Rutter, adding that the un-paid have to join a separate queue.
EasyJet says that it has no plans to follow its two competitors in charging for hold baggage. “We are instead encouraging people to maximise their cabin allowance,” says the airline. Industry observers predict that bmibaby and Jet2 may be next, based on a past record of quick implementation of industry innovations.
Both Flybe and Ryanair see significant cost savings, with Flybe estimating that the scheme will cut a third of its baggage handling costs, which amount to 12% of its total cost base. Ryanair, meanwhile, estimates that the baggage system and online check-in will allow it to cut fares by 9% (or £2.50) and be revenue neutral. “We believe that between 40% to 50% of passengers will quickly switch to our new web check-in service.” Flybe expects 25% of passengers to switch to the service in the first year. ■
Source: Airline Business
