00:00We're talking about not just rising energy prices, but what these airlines are doing as a result of these rising
00:06energy prices.
00:06We've heard from a few airlines recently, JetBlue, Delta among them.
00:10They're not just raising ticket prices to deal with this, but raising bag fees to do this.
00:14Why are they raising prices in both areas when airline tickets are so dynamic to begin with?
00:21Yeah, look, you know, two things can be true at once.
00:24You know, the price of airfare can rise. Cheap flights can also exist, but that doesn't necessarily mean that that
00:30is working for airlines.
00:32You know, airlines are really feeling the pressure from this additional cost, and they're looking at ways to protect their
00:39margins.
00:39So they're really looking to be creative here, and one of such ways is looking at ancillaries like bag fees.
00:46And it's sort of a win-win for the airlines in this stage because, yes, they're getting extra revenue from
00:53these increased bag fees.
00:55But then they're also not subject to a 7.5 excise tax that they put on base fares that they
01:01are subject to.
01:02So that's more money in the pocket.
01:03As well as they have now this framing, this justification of higher jet fuel prices, and they can always push
01:12back and say, you know what, you don't have to check a bag, even though the prices have risen.
01:17But do travelers, can they just decide not to check a bag?
01:21We ask that question for families that, unfortunately, are feeling the pressure of having or needing to check a bag.
01:27So it's really a win-win for the airlines and a lose-lose for travelers, especially when, yes, base fares
01:35have increased.
01:36Domestic prices for summer, just for example, according to our going data, up 18 percent.
01:41International fares, up 7.5 percent.
01:44So, unfortunately, this summer specifically is really going to be challenging for that cost-conscious traveler.
01:50I'm starting to get very mad at David Gurra, who is taking his vacation now and smartly already planned this,
01:55whereas I was waiting until the end of summer.
01:56Shoulder season is a good deal.
01:59But my concern is that when we see industries raise these prices, they don't tend to go back down because
02:06consumers get used to it, that threshold sticks.
02:08We very rarely, if oil prices go down, see those other prices go back down.
02:12Do you think these increased bag fees will stay at this level?
02:15I really hope I'm wrong, but I am not a betting woman, but I would bet that these fees are
02:22here to stay.
02:22They're pretty sticky.
02:24Historically, we have seen bag fees risen every few years, and it's likely that this was in airlines' playbook all
02:32along.
02:32But we have this perfect time frame now to raise fees and have a justification to do so.
02:39As well as, you know, JetBlue really started the trend, and then United joined.
02:44And if you notice, it's a herd mentality.
02:46You know, if one airline does it, it's a green light for everybody else.
02:51And unfortunately, again, travelers are looking at this to be the new norm.
02:56Is it a way to creatively get us to buy sort of that more expensive tier of ticket, too?
03:00Because if you think about it from, you know, the perspective of these airlines, they have these different tiers of
03:05service.
03:06So even the big three have these basic economy fares to try to compete with the ultra-low-cost carriers.
03:11So if you're in basic economy, maybe you don't get, you know, to choose a seat or to check a
03:16bag.
03:17You have to pay to check a bag.
03:18But then if you buy that one tier higher, you can get some of those things.
03:22And maybe those margins are better.
03:24Yeah, it's unfortunately feeling like you are being punished for just trying to get a base fare.
03:30We call basic economy just the base fare.
03:33It is basically just a seat at this point.
03:35And so we want travelers not to feel like there are no options because actually there are options when you
03:41do buy up.
03:42You are giving yourself the flexibility of taking advantage of price drops when and if they occur.
03:48And that is one huge tip that we would impart on anybody that is looking to fly in the near
03:52future that's worried about higher costs, especially for summer.
03:55When you book that main economy fare, you have the flexibility to take advantage of a notification when it comes
04:00in, whether it's on Google Flights, whatever tracking you have.
04:03Maybe it's on the going app, call the airlines, they reprice you, and then you get a credit for the
04:08difference to use in the future within the year.
04:10So you're never actually losing out when you book that higher fare class.
04:14However, yes, it is a more expensive ticket on the up front.
04:18All right, before we let you go, it's not just flights.
04:20This is impacting cruises as well.
04:23Cruises, it's like the family bargain basement travel.
04:25I have so many friends who describe themselves as vehemently not cruise people, but then they need to do a
04:30vacation with tiny children and older parents and families who can't decide.
04:33And they've all gone on a cruise and said, you know what, it was perfect, but it was affordable.
04:37It makes sense that people are looking at alternatives.
04:40We are looking at all-inclusives, domestic all-inclusives.
04:43Vegas just announced some of that is being implemented.
04:46Cruises, always a family favorite because you know what your bottom line cost is going to be.
04:50However, written into cruise contracts is little stipulations surrounding that there may be fees after the fact, even after you
04:58pay.
04:58Now, it varies across cruise lines, but that's something that travelers really need to be aware of.
05:03And unfortunately, again, it's looking to be a challenge for those cost-conscious travelers this year, specifically families.
05:09Okay, just settle this in the last 20 seconds that we have with you once and for all.
05:12No challenge, no challenge.
05:13Is there a best time to buy an airline ticket, a best day of the week to do it, or
05:18have they just gotten so smart that...
05:20Or a certain number of weeks out from...
05:21Yeah. No, she's just shaking her head.
05:23Complete myth that 2 p.m. on a Tuesday is going to be the best time, 4, 3 a.m.
05:27on a Saturday, whatever it is.
05:30Your booking window, your Goldilocks window of how early ahead of your flight that you book is the best strategy
05:37that you can impart.
05:38Don't wait till last minute, but don't wait, don't book super, super early, somewhere in that juicy middle.
05:42Are you going on a trip this summer?
05:43Always.
05:44Where are you going? Did you find a good deal?
05:45I already booked my flight to Seoul, South Korea, 4.59 round trip.
05:50That was a mistake fare that we found over at Gong, yeah.
05:52But I booked early enough.
05:53Do you just get the seat?
05:54Nothing else?
05:55You have to bring your own food for the whole flight?
05:57All right, you too.
05:58Katie Nesto, thank you so much for joining us.
06:00Have an excellent trip.
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