United Airlines CEO Scott Kirby stated the airline has no plans to follow Alaska Airlines in adopting “dynamic pricing” for checked baggage fees. Kirby emphasized United’s commitment to maintaining a simple, understandable baggage fee structure for customers, contrasting it with the complex algorithm-based pricing model implemented by Alaska. He believes clear and transparent pricing is more appealing to United’s customer base.
Alaska Airlines’ dynamic pricing, rolling out gradually, adjusts baggage fees based on factors such as flight demand and loyalty program status, potentially leading to varying costs for checked bags on the same route. While Alaska anticipates this system will optimize operations and potentially incentivize off-peak travel, some travelers worry about unpredictable costs.
Kirby implied that United believes the potential operational efficiencies and revenue gains from dynamic pricing are outweighed by the risk of frustrating customers with inconsistent and difficult-to-understand fees. He suggested that customers value knowing in advance what they will pay for baggage.
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