If you have flown on a commercial airline recently, you may have noticed that there are no free airline meals on most airlines. The Capital Freedom Blog discusses this point and concludes that airlines must have found that passengers are very price sensitive about the cost of their seats – much more so than about the amenities on flights. Many airlines are charging $1 to $5 for snacks and meals aboard flights. Personally, I think this is a great change. Even when airline meals were free, I almost always preferred not to eat them. Now, I know that I am not paying for an amenity that I am not consuming. The article also cites Continental Airlines as being one of the last holdouts to offer meal service on domestic flights. Their research (very limited) indicates that while there may be a slight cost difference between airlines with and without meal service, the flight options (timing and number of connections) are still the #2 factor in deciding between airlines, with price being the #1 factor. For me, that is about right, although #1 and #2 are pretty close. I suspect when it really comes down to it, most consumers care very little about meal service, and the airlines were very wise to cut it as a cost-cutting measure. This will allow them to build their business with very price-sensitive consumers.
Posted by Kami at 3/12/2007 05:44:00 PM