Airlines Business Model: Make Passengers Miserable
"CALCULATED MISERY" is the theory that commercial airlines make their customer experience so awful that people will spend money on services that used to be free in order to avoid the inconvenience.
With the recent news that United Airlines will be implementing a new boarding process for economy class passengers, aptly named WILMA, one cannot help but wonder if this is just another tactic in the airline industry's years-long strategy of "CALCULATED MISERY."
In case you're not familiar with the term, let’s break it down for you.
The concept of "CALCULATED MISERY" is simple: make the basic services on a flight so unbearable that customers are forced to fork over even more money for upgrades and add-ons. And with the rise of airline fees and hidden charges, it seems like this theory is becoming more and more of a reality. The practice has added billions to the bottom line of airline industry.
A recent report from airline consulting agency IdeaWorksCompany found in 2022, eight major US airlines made $4.2 billion in revenue on assigned seat fees.
According to Tim Wu, a law professor who first coined the phrase back in 2014, airlines have perfected the art of making you suffer in order to make a profit. From charging for seat selection to baggage fees, it's clear that they've found a way to monetize every aspect of your flying experience.
But, as Eric Rosen from The Points Guy points out, it's not always clear what you're actually paying for with these extra charges. And sometimes, it can even backfire – just ask Spirit Airlines, who had to shell out millions in a class action lawsuit over sneaky bag fees.
In 2022, airlines raked in $5.3 billion in baggage fees alone, according to the US Department of Transportation.
And let's not forget the chaos that ensues during the boarding process. With airlines offering priority boarding for a fee, it's no wonder people are trying to cut the line and scramble for overhead bin space.
But as frequent flyer website Head for Points points out, no matter how much mathematicians try to come up with the perfect boarding method, it all goes out the window when people and airport staff don't behave as predicted.
Spirit Airlines has the highest hidden fees of any US carrier - making trips 736 percent more expensive than their base airfare, according to analysis by discount code website NetVoucherCodes. In August, the airline agreed to pay up to $8.25 million to settle a class action lawsuit by passengers over sneaky bag fees of up to $100.
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So, is this whole "CALCULATED MISERY" business strategy genius or just terrible customer service? It's hard to say, but one thing is for sure – passengers are starting to catch on and aren't afraid to voice their frustrations.
Remember the mayhem caused by Southwest Airlines last holiday season? President Joe Biden even promised to crack down on airline surcharges in his state of the union address.
But the real question is, will United's WILMA system make a noticeable difference in boarding efficiency, or is it just another ploy to squeeze more money out of weary travelers? Only time will tell, but one thing is for sure – next time you're feeling the pain of a basic economy flight, just remember, it's all part of their calculated plan to make you pay up.