Voice reading · ~1 minWelcome to the Notitur daily brief, your travel-industry recap. Today: Hand luggage as a basic service: EU regulator pushes back. European regulators want hand luggage reclassified as a basic service included in the airfare, not an optional add-on. Same logic that killed abusive roaming charges in 2017: if it's a consumer right, you can't unbundle it.. According to Revista Bell, the price unbundling that airlines and hotels have practiced for 30 years (baggage separate, breakfast separate) is now under scrutiny. The EU monitors misleading pricing and this will force Pricing and Marketing teams to rethink their strategy. Direct hit to low-cost carriers: Ryanair, Wizz, easyJet would lose one of their most profitable ancillary lines. Hotels next? If regulators step in on carry-on, why not on resort fees or early check-in charges? Opportunity for OTAs: They could sell true all-in price comparisons from the first click.. My take: the unbundling model has reached an ethical ceiling. Charging 40 euros for a suitcase that fits in the overhead bin is not innovation, it's abuse. Revenue Management teams better get ready: the next frontier of RM is no longer dynamic pricing, it's regulation. The customer is not stupid and Brussels gets it. That is today's recap. Come back tomorrow for more on travel, artificial intelligence and travel tech. See you tomorrow on Notitur.
European regulators want hand luggage reclassified as a basic service included in the airfare, not an optional add-on. Same logic that killed abusive roaming charges in 2017: if it's a consumer right, you can't unbundle it.
According to Revista Bell, the price unbundling that airlines and hotels have practiced for 30 years (baggage separate, breakfast separate) is now under scrutiny. The EU monitors misleading pricing and this will force Pricing and Marketing teams to rethink their strategy.
Direct hit to low-cost carriers: Ryanair, Wizz, easyJet would lose one of their most profitable ancillary lines.
Hotels next? If regulators step in on carry-on, why not on resort fees or early check-in charges?
Opportunity for OTAs: They could sell true all-in price comparisons from the first click.
My take: the unbundling model has reached an ethical ceiling. Charging 40 euros for a suitcase that fits in the overhead bin is not innovation, it's abuse. Revenue Management teams better get ready: the next frontier of RM is no longer dynamic pricing, it's regulation. The customer is not stupid and Brussels gets it.
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