One of the most frustrating developments in the travel industry over the past ten years has been the rise of surcharges.
We are being nickeled and dimed with new fees, which range from seat assignment fees, housekeeping fees, and environmental fees to service fees, resort fees, and luggage fees. Anything you can think of has a fee associated with it.
The cost of airline seat assignments is one of the most obnoxious new expenses consumers now encounter. It is well known that most airlines charge for selecting 'preferred' seats in coach in addition to more legroom.
These common seat assignments used to be available to everyone, but today only the elite and those with the money can get them.
Seat assignment fees are spreading to business class
Customers are now required to pay for advanced business class seat allocations when flying with Air France and KLM, joint ventures that are partially controlled by Delta Air Lines. These seats may currently be purchased for up to $10,000. Nevertheless, you must now pay between 70 and 90 euros ($76-$98) for every flight to select a seat in advance once you have paid for a business-class seat (or used miles to reserve it).
According to Julia Gordon, the communications director for Air France USA, "With the existing model of seat selection, business class guests on Air France and KLM are not always guaranteed to get their preferred seat."
"By making the Advanced Seat Reservation a paid option, Air France and KLM will raise the likelihood that our clients actually acquire their preferred seat."
Certain situations are exempt. If you are a Flying Blue Silver, Gold or Platinum member, you won't be charged to select your business-class seat. Elite members of the joint Air France-KLM Flying Blue loyalty club are also immune from the fees. If you travel as part of a business agreement with the airlines, you will also be excluded. In addition, the 24-hour check-in window still allows you to choose a free business-class seat from the ones that are still available.
The fact that it was practically unannounced is one of the more frustrating aspects of this. For departures after April 13, it is already in effect.
Due to their transatlantic joint venture with Delta and Virgin Atlantic, it initially offered flights to North America, but that has since been reduced.
They could simply bring it back, though, if they just used it once.
Henry Harteveldt, a travel industry analyst and the founder of Atmosphere Research, criticized the Air France-KLM change as having very poor execution. "To charge someone who may be paying thousands of dollars a fee to reserve a seat in advance if they don't have frequent flyer status is insulting," he said. As a traveler, I'm not at all pleased that AF and KLM are charging for business class seat assignments, but as an analyst, I'm not shocked.
In reality, since at least 2016, Harteveldt has projected the cost of business-class seats.
The action is a copy of rival British Airlines, which has long had a similar policy in effect. Several European airlines including Lufthansa, Swiss, and a few others also charge for some business-class seat selections.
Will US airlines be affected by this?
Naturally, the concern is that it might eventually reach the American market.
According to Harteveldt, it would depend on how the Air France and KLM levies affected business.
They will watch for any changes in market share or unfavorable feedback from corporate accounts, said Harteveldt. If there aren't a significant backlash, seat assignment fees will soon be implemented by U.S. airlines, and then you'll see them adopt the model.
According to Harteveldt, it should be viewed as a failure on the part of KLM and Air France because they failed to take advantage of the absence of fees during the years when British Airways was charging for seat assignments and they weren't.
A more affordable, simplified version of business class with fewer extras like extra baggage, lounge access, and seat selection, according to him, should have been offered by the airlines.
It would be easier to grasp if they created a de-contented fare similar to what Emirates offers, which excludes items that are "often included with" a standard business-class fare, according to Harteveldt. Perhaps it makes sense for airlines to take into account (a basic business-class cost) if they would be able to sell more of their premium cabin seats given the decline in business travel.
Author of the publication Airline Observer and industry analyst Brian Sumers said, "I can't say that I'm surprised. "In essence, International Airlines Group and Lufthansa Group are Air France-two KLM's rivals on that side of the Atlantic. We, therefore, know that British Airlines has charged for seats for a very long time, and we also know that Lufthansa Group has charged for its unique throne seats."
Sumers continued, "We also have a fresh development. "With the introduction of its new business class, Lufthansa will charge for everything. The seat charge arrangement will be the most convoluted ever."
Sumers said that he comprehends the reasons for it, including the fact that business-class travel hasn't entirely recovered from the COVID-19 pandemic.
The front cabin used to be sold by airlines like Air France to bankers and attorneys who didn't care how much money they paid, according to Sumers.
"A large portion of that company has vanished.
Several business class tickets for the summer have likely already been purchased by our readers. Although consumers believe they paid a high price for their tickets, the premium pleasure demand does not completely offset the business need."
I questioned Sumers about whether he believed American carriers would adopt the tactic, and he responded, "I believe that contrary to what people may believe, American airlines are more aware of the political environment.
There has been enough criticism of airlines' fees that I believe those who work for them are thinking twice before adding any more."
In conclusion
Unfortunately, Harteveldt and Sumers concur that fees will never go away.
Consumers claim to be frustrated, but they continue to fly on low-cost airlines, where fees are the norm, according to Harteveldt.
"They offer a price akin to Ticketmaster, gasoline recovery, and advance seat reservations. For both carry-on and checked bags, there are fees.
None of the network airlines have suggested that by abandoning surcharges and returning to an all-inclusive business model, together with vigorous marketing, we might be able to increase our market share.
Instead, they all adopted the a la carte approach of the low-cost airlines."
If there had been a backlash, Harteveldt continued, "there would have been a significant movement in market share." "We haven't observed a backlash where customers revolt against the airlines who impose taxes or a movement in market share in favor of the airlines that don't. Given the profits that airlines made from these goods, they won't give up any of that unless it's mandated by the government or a shift in the market's dynamics."
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