[Anonymous]

[BusinessTraveller]

Will KLM’s checked baggage fee succeed? The news that Dutch carrier KLM will soon charge short-haul passengers every time they check a bag is an ominous sign.

http://www.businesstraveller.com/news/klm-to-charge-for-checked-baggage

The concept of traditional airlines charging for baggage checking (mainly for domestic and shorter international routes) originated in the US a few years ago.

Until now European carriers have stayed aloof from so-called ancillary fees to maintain a point of difference between themselves and their budget rivals.

In truth I suspect our big carriers like British Airways, Lufthansa and the Air France/KLM Group have all wanted to introduce such a charge. But no carrier, until now, has wanted to court negative publicity by being the first.

So KLM is very much a guinea pig. And I would imagine that rivals will want to see how KLM passengers react.

Feedback from the US (where most if not all traditional carriers levy a fee) suggests that passengers grumbled at first then resigned themselves to paying up.

KLM will be hoping a similar scenario will be played out in Europe. If that’s the case and passengers stay loyal to KLM then one would assume that other national airlines will follow suit.

Indeed one could argue they already do charge in a roundabout way.
Transavia (a budget subsidiary of AF/KLM) charges for checked bags so does Germanwings (a Lufthansa low-cost subsidiary).

Passengers taking Air France’s regional carrier Hop will pay when it takes to the skies at the end of March.

http://www.businesstraveller.com/news/air-france-unveils-hop-regional-branding

But why the charge? It is because baggage charges can be a nice earner especially as Europe’s national airlines make little if any profit on their short-haul routes.

Yes, they could raise their headline fares to more profitable levels. But would the market stand for it? If they charge too much they risk losing traffic to budget rivals, let alone those business people who (for trips within mainland Europe) might defect to high-speed rail or company cars.

Are there any drawbacks for KLM?

For starters there is a risk that passengers will be lost. Travellers can easily switch to competitors on routes like Amsterdam to London, Frankfurt and Stockholm.

But KLM is banking on frequent travellers being tied to its loyalty scheme. That is why KLM has, cleverly, said it will waive fees for all Flying Blue members. On the other hand, for how long such generosity will be extended to lower tier members remains to be seen.

Lucrative full fare passengers will be exempt so too will long-haul travellers even when making a short-haul connection. So there will be no charge for flying, say, Dubai-Amsterdam-Chicago or Manchester-Amsterdam-Hong Kong.

As compensation for the fees, KLM has brought in a range of what it claims are lower promotional fares. But there is no guarantee that these will not be hiked in the future.

So when all is said and done, KLM stands to get away with it. But in that case we passengers can expect ancillary fees to become more common in the years ahead.

Alex McWhirter

[TimFitzgeraldTC]

Have they advised what happnes to other SkyTeam frequent flyers – will they have to pay for baggage where applicable.

Also any companies that sign up for BlueBiz will also avoid the baggage fees.

[Vertrek]

I expected it already and yes, I dislike it. However, I’ve checked KLM flight for Summer to London and the lowest price I found was EUR40 ex AMS and EUR 62 ex LHR. So return flight cost E102. This is lower than the usual E139 I pay for return AMS-LHR flight and as much as I dislike it, In the long run i’ll save quiet a lot, as I don’t usually travel with checked-in luggage.

[LuganoPirate]

Ex Mrs. LP and older kids all use KLM in Europe when they come to see me in Lugano. I’ll now book them Swiss.

What I hate more than anything is the pay in advance concept, especially if plans change and you don’t need to check a bag after all – tough no refund. If on the return you then do need to check a bag, you pay double.

I would strenuously try to avoid any airline that tries this and I hope the groundswell of people keeping away is so great KLM will reverse its policy and others will not impose this charge. If they want to go the way of the lowcosts, then I may as well fly the lowcosts instead!

[christopheL]

I’m afraid you won’t be able to fly within Europe with any airline in a near future.

Many people travel with hand luggage only and are pleased to take advantage of a reduced fare. Air travel has become as common as rail travel and people are looking for the cheapest fare.

The French railways are now introducing what they call the “TGV low cost” (low cost high speed trains) which will be a few euros cheaper than the ordinary TGV. How could legacy airlines avoid the same trend?

[Vertrek]

“Dear Mr Vertrek,

KLM recently announced that it will be changing its baggage policy for European flights. For tickets booked as from 22 April 2013, check-in baggage will be a paid option for all passengers travelling in Economy Class.

As a valued Flying Blue Silver member you continue to have the right to check in one piece of check-in luggage free of charge on European flights.

Options
The choice to check in baggage will become part of a range of flight options. It is also possible to expand your booking with options such as a seat in Economy Comfort or access to the KLM Crown Lounge. This way KLM offers you the chance to customise your trip based on your personal preferences.

Fare reductions to European destinations
For a large number of European destinations, KLM is reducing its lowest available fares to €99 for a return flight. This expands the range of destinations available at this price within Europe to over 30 locations.

Click here for more information on check-in baggage

We hope to see you on board soon.”

Send to my inbox

[MarcusUK]

As a Gold FB member mostly flying KLM or Cityjet, I think this is a wrong move. I agree as many of us have said on this forum, that Airlines should either be Low cost, or Not!

I have checked their fares for the period they state April 2013 onwards. KLM already have promotions and fares for E.99 return. They had them last year. Fares to and from LHR -AMS have run at £99 for the last several years, with luggage included. I see fares are £104 from the period in April, not less.

The one advantage, is that KLM are now offering one ways fares, where-as before, they charged a full Business rate (EG £450, now appears to be £65)

If Flying Blue members do not pay, then your average aware passenger will sign up, and not pay. But, just as KLM push into more Regional UK gateways, and are currently doing well with seat capacity, this would put off many who would choose to book.

Easyjet have fares from £15.99 ex Luton, STN, Southend each way to Amsterdam. Add a suitcase and it is still an excellent fare. KLM making the cheapest Ex LHR fare at £104, adding approx £25 takes the fare to £130, Unless you pay for a much, much higher flexible fare, (no mention of business class), you still would have to pay. I would not choose them for leisure fares in this case.

In my view, they will lose business, and they will alienate many customers as they travel. There will be arguments at check in, and the gates, and people will see and not choose KLM in future.

Even the news of this, would still create a poor view of the Airline, wherever you travel with them, long haul or not. We will all begin to think “well, Swiss, LH, BA etc don’t charge for this, so next time i shall choose them”.

KlM are recovering extremely well, and the share price raised from Euros 3.20 last summer, to 8.39 today. This will be bad publicity, isolate them from other legacy Airlines, and not operating in a low cost manner, just add charges where people feel ripped off. it will Not help their European flight income or capacity, and badly scar their reputation.

A great mistake in my view…I wonder what else is part of this 2015 plan, which is being implemented for AF/KLM?!!!

[TominScotland]

Maybe MarcusUK but if I was a betting person (and I am not) I would put money on thar we will see Swiss, LH, BA et al follow suit within a couple of years – as others have already said. So the choice disappears, even for LP.

[Edski777]

I also received this message from KLM and believe that many of the legacy carriers will follow suit.

KLM is making their pricing more transparent for intra-European travellers. For travellers with an origin or destination outside of Europe nothing will change. They will also offer the benefit of a free suitcase to members of their Flying Blue loyalty scheme.

But by making the luggage an option and lowering their fares KLM is directly aiming at the low cost carriers. KLM flies to major airports, in stead of LCCs that use mostly regional ones, and offers schedules that are normally better suited to business people.

I agree with those that suggest that KLM is an early adopter for this type of business model among legacy carriers. And most legacy carriers in Europe are struggeling to make a profit on their European routes. In order to survive against the rapidly growing LCCs like Ryanair, Easyjet, Norwegian, etc. Look at the order books at Boeing and AIrbus for what is to come.
I believe more and more of the legacy carriers will, in the very near future, have to start considering a different business approach. I feel that many of the large legacy carriers in Europe are looking at this move in anticipation and will join when this proofs succesful.

Does it mean something for the traveller in the premium cabin? I don’t think so, but the economic reality dictates that most of us already travel on intra-European flights in Y and probably more and more will follow.

Travelling through Europe by air will, for most of us, resemble travelling on a bus. The days of luxury air travel on short routes with ample legroom and a decent meal have long gone.

[SwissExPat]

aer Lingus has lost virtually all,of my business in the last 4 years largely due to their baggage fees and lesserly by charging for food / beverage on flights.

I simply moved all my business to BA (BMI) and Swiss. I also found that the latter were usually cheaper also.

[AMcWhirter]

Thank you for all your comments.

KLM still has to clarify a number of issues surrounding about its new checked bag fees. These come into effect for bookings made on or after April 22.

For example:

1. What about members of other Skyteam FFPs ? Will they have to pay to check bags with KLM or will KLM waive the fees for all members or only for high tier members ?

2. What happens when passengers make connections over AMS using separate tickets ? Assuming they are not Flying Blue members and that they are not paying full fare, would they be charged fees twice when making a short-haul transfer within Europe ? Or would they have to pay once when making a long-haul connection over AMS ?

3. An anomaly has come to light. According to klm.com the checked bag fees do not apply when passengers travel to Italy, Turkey, Russia, Belarus, Georgia or the Ukraine. No reason is given.

Some passengers will surely find this confusing.

[LuganoPirate]

If, as it says in the email Edski received, they wish to make the fares more transparent, then why not start with the all inclusive fare: then deduct € 25 if no hold baggage?

[Vertrek]

Lugano.

Then people would think that KLM is trying to cheat their money. Just like those €6 insurance that Ryanair always add automatically to your ticket, but it’s unnecessary. People who don’t wish to travel with luggage might accidentally buy it and then complaint to KLM.

[canucklad]

Disappointed with KLM…..

Slowly but surely they are turning themselves into A LCC operation by stealth…..

As Ii’ve said before, it stuns me that legacy carriers do not learn lessons from these nonsense and confusing charges…..

Not just charging for food, now hold luggage and pre-selecting seats !

Didn’t work at BMI, Aer Lingus is a mess ….the Us carriers have a terrible customer service perception amongst the travelling public.

KLM should use their USP to their advantage and stop diluting their marketing message…

Any time i fly to Europe , KLM and AMS is my natural choice….If I;m just off to AMS, then I’m afraid EZ now comes into play as there is no real difference !

I agree with SwissExpat…..As consumers the most powerful weapon we have is choice of where we spend our cash!

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