Friday, July 18, 2008

Lower Price Alternatives

Depending on the airline you use, it's now becoming cheaper to ship your bags ahead of time rather than checking them onto your flight.

This chart breaks down several options, including two ends of the airline spectrum, a couple of couriers, regular mail, and a couple of specialty operations.

Assuming that the trend continues, here are my two cents:

1. Fedex, UPS, and other courier companies would be very smart to open branches inside airport terminals. Both Fedex and UPS own chains of business service retail outlets (Kinkos and what used to be Mailboxes Etc.), so they certainly already understand the model of a small storefront location. Bonus: they could offer airport customers other services like Internet access, printing, and so on -- something severely lacking in most airports.

2. Comparing the two airlines on the chart... Southwest's fees are low and they're doing relatively alright. Delta's fees are high and they're constantly in financial trouble. Coincidence, or is this just an illustration of how screwed up the big "legacy" airlines are? Hmmm, I wonder.

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