The Impossibility of Reducing Airline Ticket Prices by Limiting Checked Baggage

The recent proposal to limit checked baggage to 20kg per person has sparked debate over its potential impact on airline ticket pricing. However, comprehensive analysis reveals that such a reduction may not lead to a decrease in ticket prices, as airlines face several hurdles to successfully implement this change.

1. Current Airline Practices and Operational Constraints

Contrary to the idea that reducing the free baggage allowance would increase revenue, airlines have not ventured down this path. Their current practices, such as charging for overhead bin space, seat selection, and even airport entry per person, indicate that they have already explored ways to maximize profits from their passengers. Airlines ultimately aim to increase revenue by making passengers pay for additional services, not by limiting the amount of baggage they can carry for free.

2. Insufficient Revenue from Reducing Free Allowance

Reducing the free baggage allowance to 20kg per person does not guarantee additional revenue. Firstly, not all routes have a commercial cargo demand that could offset the loss from fewer passengers bringing up to 20kg of free checked baggage. Secondly, passengers typically carry more than 20kg of essential items on long-haul flights, indicating that the reduced allowance would need to be paid by most travelers, thereby increasing their overall cost. Moreover, such a drastic reduction would fail to incentivize passengers to bring less baggage, as they would simply be charged for the excess over 20kg rather than eliminating the free allowance altogether.

3. Profit Margins and Business Strategy

Airlines operate with extremely thin profit margins, and strategies to increase profits must be carefully calculated. Allowing more passengers to carry additional baggage without imposing excess baggage fees would align better with the airline's business model. By requiring passengers to pay for extra baggage, airlines manage to capitalize on the demand for personal space while maintaining flexibility in their pricing structure. This strategy is more profitable than reducing the free checked baggage allowance, as it ensures a continuous stream of revenue regardless of the baggage weight.

4. Negative Impact on Passenger and Carrier Interests

Limiting checked baggage to 20kg per person could have a detrimental effect on both airlines and passengers. From the airline’s perspective, there would likely be a decrease in the number of long-haul travelers due to the added financial burden. Passengers who wish to bring back substantial baggage, such as those from African and Asian destinations, may find it difficult or impractical to travel. Additionally, the forced restrictions on passenger baggage would stifle revenue streams tied to additional fees, ultimately harming the profitability of airlines. This policy would perversely discourage passengers who wish to utilize additional space for personal items or essential items required during a longer period of travel.

Conclusion

In summary, while the concept of reducing free baggage allowance to force passengers to pay for excess items might seem appealing in theory, practical implementations and market realities suggest that such a move would not reduce ticket prices. Airlines have already implemented various measures to boost revenues, and limiting checked baggage would not align with their existing strategies. Therefore, any suggestion to enforce a strict 20kg limit per person is ill-advised and may ultimately harm both the airline and its passengers.