Although the base price of cheap fares, such as cheap airplane tickets and cheap vacation packages will go up for travelers who select American Airlines new bundled fare option, for some travelers the higher prices may prove to be a bargain.
American has introduced what is calling Choice Essential fares for an additional $68 which offer no change fee on domestic flights, which today cost $150 per change, one roundtrip checked bag at no additional cost which otherwise costs $50, and Group 1 priority boarding which other airlines typically charge at least $20 for the privilege.
Choice Plus is a second option being offered which comes with all of the features of Choice Essential as well as a free same day flight change, which costs $75, and a no cost premium beverage which costs $7 to $8.
Any passenger who will be checking one bag and has reason to believe that his/her travel plans might change would be benefit from paying only $18 more (given that one checked bag will cost $50 roundtrip) to have the right to change a flight without having to pay Americans onerous $150 change fee. That priority boarding is included is another plus.
Business travelers are known to often change their travel plans given that meetings can go shorter or longer than originally planned. Paying $20 more for same day change flexibility that includes a cocktail will be a real value for some travelers.
You can be certain that other airlines will closely follow the success or failure of Americans new pricing approach. The only potential obvious cost of this program to American is the money it may lose as a result of customers not paying its higher change fees, which in the first quarter of 2009 were $116 million.
www.cheapfares.com