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Why Do Airlines Charge Usage Fees For Wifi?  
User currently offlineLHCVG From United States of America, joined May 2009, 1579 posts, RR: 2
Posted (4 years 6 months 3 weeks 1 day ago) and read 7805 times:

Specifically, why not just add a flat $5 say to every ticket sold as the "IFE fee"? Given the $12.95 fee at Delta, for instance, they would have to have about a third of the cabin sign up each trip to get the same revenue as the $5 a head plan. I recognize the obvious counter of "what if I don't use a laptop/headphones/etc.". Fair, but I don't think many would complain about $5, and it may bring more people over to your carrier.

24 replies: All unread, jump to last
 
User currently offlinesancho99504 From United States of America, joined Dec 2005, 570 posts, RR: 0
Reply 1, posted (4 years 6 months 3 weeks 1 day ago) and read 7741 times:

I agree, but they have to get a return on their investment and they are probably trying to get it as fast as possible. I think a flat $5 fee would bring more people to the table, but even though a lot of people are in favor of it, how many US carriers have power ports on their aircraft in economy? Most of my flight segments are of the 4+ hour range, so its not an option for me and almost useless to me on short segments for $8.....


kill 'em all and let God sort 'em out-USMC
User currently offlineFlyNTE From United States of America, joined Aug 2007, 39 posts, RR: 0
Reply 2, posted (4 years 6 months 3 weeks 1 day ago) and read 7729 times:

Although $5 seems like a small amount, it is enough of a difference for some passengers to book on another carrier that does not have that fee. Consumers are extremely price sensitive when it comes to air fares.

User currently offlinePGNCS From United States of America, joined Apr 2007, 2825 posts, RR: 45
Reply 3, posted (4 years 6 months 3 weeks 1 day ago) and read 7722 times:

Why should someone who isn't going to use WiFi subsidize someone who does choose to use it?

User currently offlinePilotboi From United States of America, joined Sep 2007, 2366 posts, RR: 9
Reply 4, posted (4 years 6 months 3 weeks 1 day ago) and read 7692 times:

That's like asking the same thing about bag fees. Why not just slap the two first bag fees on everyone's ticket and let everyone have two free bags? Because if you have no bags you shouldn't have to pay those fees.

User currently offlineDaysleeper From UK - England, joined Dec 2009, 841 posts, RR: 1
Reply 5, posted (4 years 6 months 3 weeks 23 hours ago) and read 7550 times:

Quoting PGNCS (Reply 3):
Why should someone who isn't going to use WiFi subsidize someone who does choose to use it?

Same reason thin people pay for the extra fuel fat people do?  

I really hate the way airfairs are caclulated now, fuel tax, baggage fees etc etc. It really should be like the 76 Bus to Hull from Withernsea,. "Hull Please" - "That's £3 Please" - Not, Thats "£1.86, but if your going to sit down, well then thats another 50p... OH you want to look out of the window, well thats 5p per mile though the city, in the countryside its 10p. And should we pass an accident for you to gore over - well then there is a £1 on the spot tax" "Did I mention Tax btw, Fuel tax is going to cost you 14p"....... "and ohh,, you have been shopping, how many bags is that......."


User currently offlinesancho99504 From United States of America, joined Dec 2005, 570 posts, RR: 0
Reply 6, posted (4 years 6 months 3 weeks 23 hours ago) and read 7550 times:

Quoting PGNCS (Reply 3):
Why should someone who isn't going to use WiFi subsidize someone who does choose to use it?

I would make it a pya as you use it type account that way nobody is subsidizing anyone.



kill 'em all and let God sort 'em out-USMC
User currently offlineNWA330nut From United States of America, joined Sep 2009, 117 posts, RR: 1
Reply 7, posted (4 years 6 months 3 weeks 22 hours ago) and read 7393 times:

Quoting FlyNTE (Reply 2):
Consumers are extremely price sensitive when it comes to air fares.
Quoting Pilotboi (Reply 4):
Because if you have no bags you shouldn't have to pay those fees.

Pretty much as to do with the "pay for the frills" kind of business sense that airlines are constantly pursuing these days. People HATE paying for things they aren't going to use. Same reason why people complain about how their tax dollars are being spent.


User currently offlineLHCVG From United States of America, joined May 2009, 1579 posts, RR: 2
Reply 8, posted (4 years 6 months 3 weeks 22 hours ago) and read 7343 times:

Quoting FlyNTE (Reply 2):
Although $5 seems like a small amount, it is enough of a difference for some passengers to book on another carrier that does not have that fee. Consumers are extremely price sensitive when it comes to air fares.

So it's the WN problem of people wanting their dirt cheap fares regardless. Makes sense.

Quoting PGNCS (Reply 3):
Why should someone who isn't going to use WiFi subsidize someone who does choose to use it?
Quoting Pilotboi (Reply 4):
That's like asking the same thing about bag fees. Why not just slap the two first bag fees on everyone's ticket and let everyone have two free bags? Because if you have no bags you shouldn't have to pay those fees.

I should have made clear, I don't think it's good to subsidize other pax, but I was coming from the company's perspective of can't they make more by charging everyone a small fee rather th


User currently offlineSKYMILER From United States of America, joined Aug 2007, 531 posts, RR: 1
Reply 9, posted (4 years 6 months 3 weeks 19 hours ago) and read 7057 times:

As I understand it the fee goes to AirCell or whoever the provider is, and the airline gets a cut. The airline does NOT set the price, nor own the on-board equipment. Furthermore, the provider owns the aircraft STC (Supplemental Type Certificate) so that they have total control.

The airline simply flies around the providers equipment, and in return for any weight or drag penalty gets a cut and the marketing benefits.

Incidentally, watch "Up in the Air" and look for the "GoGo" product placement in at least 1 scene!



I love to fly, and it shows!
User currently offlineRoseFlyer From United States of America, joined Feb 2004, 9646 posts, RR: 52
Reply 10, posted (4 years 6 months 3 weeks 16 hours ago) and read 6471 times:

Gogo sets the prices and takes most of the revenue. It is a win win situation. The airline gets to offer internet which is a competitive advantage at essentially no cost. Go go is running a business. The same setup is how Continental is funding PTVs on the domestic fleet.


If you have never designed an airplane part before, let the real designers do the work!
User currently offlineChris777 From United States of America, joined May 2005, 44 posts, RR: 0
Reply 11, posted (4 years 6 months 3 weeks 12 hours ago) and read 6191 times:

the interesting thing is that hotels charge for internet and nobody is complainig but if an airline charges for that is unacceptable!! WHY is that??

User currently offlinemotopolitico From United States of America, joined Dec 2005, 212 posts, RR: 0
Reply 12, posted (4 years 6 months 3 weeks 11 hours ago) and read 6129 times:

Because they can. Next thread, please!


Garbage stinks; trash don't!
User currently offlineYULWinterSkies From United States of America, joined Jun 2005, 2179 posts, RR: 5
Reply 13, posted (4 years 6 months 3 weeks 11 hours ago) and read 5959 times:

Quoting Chris777 (Reply 11):
the interesting thing is that hotels charge for internet and nobody is complainig

Many civilized hotels offer free wifi, only the most business-oriented expensive hotels charge for wifi (because they assume most customers will need it and bill it to their company who can afford $10/24 hr...). Yes i do complain about it and avoid these hotels like the plague. Usually, the cheaper the hotel, the higher the chance wifi will be available for free...

Same goes for airports. Usually, small regional airports have it for free, while major airports usually charge for it.



When I doubt... go running!
User currently offlineDocLightning From United States of America, joined Nov 2005, 19727 posts, RR: 58
Reply 14, posted (4 years 6 months 3 weeks 10 hours ago) and read 5708 times:

Quoting FlyNTE (Reply 2):
Although $5 seems like a small amount, it is enough of a difference for some passengers to book on another carrier that does not have that fee. Consumers are extremely price sensitive when it comes to air fares.

$197.99
$202.99

Which fare are you going to pick at a casual glance on a Travelocity-type website?


User currently offlineplatinumfoota From United States of America, joined Jan 2006, 556 posts, RR: 0
Reply 15, posted (4 years 6 months 3 weeks 9 hours ago) and read 5613 times:
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Quoting DocLightning (Reply 14):
$197.99
$202.99

Which fare are you going to pick at a casual glance on a Travelocity-type website?

If $197.99 would be AA and $202.99 would be UA then I would go with UA because I know that UA has Ch.9 (i know not always). Same thinking goes into WiFi.



Never forget United 93
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13608 posts, RR: 61
Reply 16, posted (4 years 6 months 3 weeks 9 hours ago) and read 5547 times:
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Quoting SKYMILER (Reply 9):
As I understand it the fee goes to AirCell or whoever the provider is, and the airline gets a cut.

  

This is absolutely correct. Carriers using Aircell's Gogo service do not set the pricing; they merely receive a small cut of the revenue.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineFN1001 From Moldova, joined Sep 2008, 234 posts, RR: 0
Reply 17, posted (4 years 6 months 3 weeks 6 hours ago) and read 5099 times:

If all passengers pay a fee, many of them will use it, creating data traffic and making the connection slow.

I personally think that everything below $15 is not to much if I need internet on the flight. And when I use it, I am happy if I must not share the capacity of the network with too many people.



Mai bine să-ţi fie rău decît să-ţi pară rău.
User currently offlineMD11Engineer From Germany, joined Oct 2003, 14026 posts, RR: 62
Reply 18, posted (4 years 6 months 3 weeks 6 hours ago) and read 5085 times:

Quoting motopolitico (Reply 12):
Because they can. Next thread, please!

Exactly. Basic principle of capitalism: Maximise your profits.

Jan


User currently offlineridgid727 From United States of America, joined Jul 2008, 1131 posts, RR: 0
Reply 19, posted (4 years 6 months 3 weeks 4 hours ago) and read 4635 times:

Quoting EA CO AS (Reply 16):
This is absolutely correct. Carriers using Aircell's Gogo service do not set the pricing; they merely receive a small cut of the revenue

You're right on! It is the same exact concept as when airPhones were the rage in the seat back . the company providing the phones and installation cost in each aircraft owned the phones, priced the product, and the airline recieved ancillary revenue for usage, but not everyone on board subsidized the convenience of having it there.


User currently offlinegdg9 From United States of America, joined Jun 2005, 645 posts, RR: 0
Reply 20, posted (4 years 6 months 3 weeks 2 hours ago) and read 4277 times:

Quoting sancho99504 (Reply 1):
I think a flat $5 fee would bring more people to the table, but even though a lot of people are in favor of it, how many US carriers have power ports on their aircraft in economy? Most of my flight segments are of the 4+ hour range, so its not an option for me and almost useless to me on short segments for $8.....

So true. The laptop will run out of battery power after about 2 hours.

Quoting platinumfoota (Reply 15):
If $197.99 would be AA and $202.99 would be UA then I would go with UA because I know that UA has Ch.9 (i know not always). Same thinking goes into WiFi.

Yes, but those who would pay the extra $5 for Ch. 9 are pretty much confined to this board and maybe a few others!


User currently offlineBennett123 From United Kingdom, joined Aug 2004, 7615 posts, RR: 3
Reply 21, posted (4 years 6 months 3 weeks 1 hour ago) and read 4183 times:

On our local train company, there are power points between the seats.

Could this be done on planes.


User currently offlineFutureATP From United States of America, joined Feb 2000, 221 posts, RR: 0
Reply 22, posted (4 years 6 months 3 weeks 1 hour ago) and read 4129 times:

Doesn't anybody read a book anymore lol!

User currently offlineiowaman From United States of America, joined May 2004, 4404 posts, RR: 6
Reply 23, posted (4 years 6 months 2 weeks 6 days 23 hours ago) and read 3815 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Quoting YULWinterSkies (Reply 13):
Usually, small regional airports have it for free, while major airports usually charge for it.

I've actually found it to be the opposite; DEN and LAS have free wi-fi, where as DSM and CID charge.



Next flights: WN DSM-LAS-PHX, US PHX-SJD.
User currently offlinepar13del From Bahamas, joined Dec 2005, 7232 posts, RR: 8
Reply 24, posted (4 years 6 months 2 weeks 6 days 22 hours ago) and read 3780 times:

Quoting Daysleeper (Reply 5):
Same reason thin people pay for the extra fuel fat people do?

Somehow they don't protest, wonder why???????

Quoting LHCVG (Reply 8):
So it's the WN problem of people wanting their dirt cheap fares regardless. Makes sense.

Past tense, the legacies are now cheaper than WN in so many ways, including prices, time to re-work this line of thinking  
Quoting motopolitico (Reply 12):
Because they can. Next thread, please!

Wonder why they are leaving all that excess revenue on the table by not charging to use the lavs  


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