Rent-to-own News

Rent-to-own News - Airlines Took $3.4B for Bags in 2010

June 28, 2011

The same day the Department of Transportation released numbers showing that in 2010 U.S. airlines pocketed $3.4 billion in fees for checked bags, trade groups for several carriers asked the DOT to extend a deadline that would require baggage fees be made more transparent to travelers, according to Time.

 

The groups claim that Aug. 23 is too early a date to properly train employees and update their systems. But the DOT report brings to light what might be another motivating factor for airlines to keep their fees as low-profile as possible.


True, it's relatively easy to look up baggage fees on a carrier's website. Delta, which accounted for $952 million of checked baggage fees, or 28% of the $3.4 billion, charges $25 for the first bag checked and $35 for the second bag on domestic flights. American Airlines, at No. 2, earned $580 million in bag fees, also charges the $25/$35 rates on domestic flights and flights between Canada and the U.S., Puerto Rico or the Virgin Islands. Most airlines will not charge fees on the first checked bag on international flights.


But regardless of how transparent airlines are about bag fees on their websites (and actually it takes at least five minutes to break down the various levels of fees airlines charge), some travelers aren't aware of the price difference between the first and second checked bag or that some airlines don't charge for travel between Canada and the U.S., Puerto Rico or the Virgin Islands.

 

With all that travelers have to consider these days — patdowns, sleeping air traffic controllers, increasing airfare — it wouldn't hurt to have an e-ticket that details exactly what kind of fee they'll have to pay for checked baggage on their individual flights.


While it can be argued that things like in-flight entertainment and perhaps even food are a luxury and therefore should incur a charge, it's pretty difficult to travel without luggage. And unless overhead bins get bigger, there doesn't seem to be room for the growing number of people who are foregoing checking baggage and carrying on. Considering the extra money that's rolling into airlines like Delta, American and U.S. Airways, the airlines could at the very least give travelers a heads up on what they should expect to pay to check their bags.


 

About APRO
The Association of Progressive Rental Organizations is the official voice of the rent-to-own industry and the most accurate and trustworthy source of rent-to-own news in the industry. Founded in 1980, APRO is the national, nonprofit trade association advocating and representing the rent-to-own industry before the U.S. Congress, state legislatures, courts, media and the public.

For more information, visit www.rtohq.org.




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RTOHQ: The Magazine’s upgraded digital format

APRO's new, mobile-ready magazine is now available in addition to our print edition. The digital format provides the same informative content as our printed magazine, but also offers tools to make the reading experience more enriching. Access the table of contents page with one click or tap. Get additional information from advertisers by clicking on the links in their ads. The interface is easy to navigate and requires no special app—read our magazine on your computer, digital table or smartphone. Click here to access the digital version of RTOHQ: The Magazine March-April 2012.

 

 

A New Rent-to-Own Experience

by Neil Ferguson

Here’s the lowdown on APRO’s 2012 Convention and Trade Show, July 24-26 in Memphis. The RTO industry’s big event will offer many valuable experiences, including insights on how to turn your stores into “experiences”–the good kind for consumers

 

Who Is Your Competition?

by Bill Keese

In order to expand your customer base, you can learn a lot by observing your competitors. But first, you need to figure out just who they are. If you think your only competition is the rent-to-own store down the street, you’re not considering the bigger picture. APRO’s executive director offers a big-picture perspective.

 

A Review of Online Customer Complaints

by Ed Winn III

While rent-to-own companies have not cornered the market on negative reviews posted on consumer complaint websites, it’s no surprise that there are cyberspace beefs against RTO. APRO’s general counsel reviews some of them in search of a pattern and he considers appropriate response to online complaints.

 

Rent-to-Own Families, Part VIII

by Kristen Card

Our series of family-run rent-to-own businesses continues with profiles of the Homeiers in Kansas and two Texas-based sets of kindred colleagues, the Spangles and the Weisblatts.

 

 

Future issues of APRO's magazine will be available in this same new format. Click here to access past issues that are not yet archived in the new interface.

 

Association of Progressive Rental Organizations
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