Inflation is receding, but we are still dealing with baggage left behind.
Anyone booking summer air travel will quickly get the picture. While air fares have come down some from peak levels, checked-bag fees are higher and carry-on luggage is now being targeted. Air travel today is a lesson in how inflation always seems to have the upper hand on consumers. If you’re not paying more, you’re getting less.
Checked bag fees were introduced about 10 years ago at around $25 for economy flights. Increases since then, including one earlier this year, have pushed the cost to between $35 and $75 or so, depending on what kind of ticket you buy, where you fly and when you pay. Check a second bag and these costs are even higher.
Baggage fees are a surcharge on air travel prices, which are currently under scrutiny as part of a federal Competition Bureau study of the airline industry. Carry-on bags are the preferred way to avoid checked bag fees, but they’ve become a problem. Between full flights and limited overhead bin space in some aircraft, boarding a plane has become a tense process of finding the bin space you need. Also, the process of boarding and exiting the plane takes longer when many passengers have a bag to load overhead.
The response at WestJet is the UltraBasic fare option for people who can get by without a carry-on bag that goes in an overhead bin. They’ll be allowed a small bag that fits under the seat in front of them, but that’s it. The expectation is that this new fare level will result in less carry-on luggage, but for now it’s attracting considerable mockery online.
The ultra low cost carrier Flair Airlines already has a policy of charging people extra to bring a carry-on bag that won’t fit under the seat in front. The fee is $29 to $59 if you pay online, $49 to $69 at check-in and up to $89 at the airport. You can check a bag on Flair, but it costs more than carry-on.
We’re not at the point yet where conventional airlines are charging for carry-on luggage like Flair, but the trajectory of airline pricing policies means it’s probably coming. Airlines see the mess caused by crowds of passengers bringing suitcases on planes, and there are revenue considerations as well. If there’s a significant economic slowdown or recession, then ticket prices may need to fall further to keep planes full. Introducing or increasing fees for travellers is one way to offset lower ticket prices.
Avoiding baggage fees is becoming more of a challenge, but it’s still doable. Several travel reward credit cards offer a free first checked bag benefit. Travelling light is another option, and there’s a lot of advice online about space-saving packing techniques. Finally, booking a more expensive ticket can get you a free checked bag. Other benefits might include more legroom and better terms for changing a flight or getting a refund.
Attention new parents: Have you applied for a mortgage while on parental leave? Did you find lenders would take into account only a portion of the regular employment of whichever parent was off with the baby?
If you’d be up for an interview about your experience, please reach out to Globe reporter Erica Alini at ealini@globeandmail.com
(Please note, qualifying for a mortgage is notoriously trickier for those who work on contract or are self-employed. For this story, we’re looking for people who took leave from a permanent job. We need to speak with individuals who are comfortable sharing their full name for the article.)
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Rob’s personal finance reading list
They ain’t heavy – they’re my groceries
Shrinkflation is commonplace now – we’re all used to paying the same for packaging that holds less food etc. Now, there’s a rise in complaints about products that weigh less than the amount shown on the packaging. Here’s how to complain if you find an example of a product that weighs less than it’s supposed to.
A smart take on investing fees from a veteran wealth manager. The analysis favours low-cost index tracking exchange traded funds over active management. But investors are also urged to consider the value of service and guidance provided by an adviser.
Theft is driving insurance costs higher for these vehicles
Six vehicles are singled out here for being a particular target of thieves and, as a result, subject to hefty increases in insurance premiums.
Financial compatibility seems more important in a relationship now than in the past. I guess this is why we have articles like this one, which offers four money-related conversation starters for a first date. My two cents is to perhaps wait until the second date.
Reader comment: “I became an executor 24 hours ago and have a different perspective on executor fees. Let’s suppose I take a fee which amounts to $25,000. It is taxable so I net $12,500. But if I don’t take a fee. the estate is $24,625 larger after probate, and my share is about $8,200. I would rather give up $4,300 so other heirs can be $16,400 better off.
Rob’s comment: Let’s hear more after you’ve been an executor for 24 months.
Do you have a question or comment for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Tools and guides
A ‘where can you afford to rent’ calculator.
In the social sphere
Social Media: Thoughts from an accountant on gifts and housing loans to adult children.
Watch: A list of the best Canadian personal finance YouTubers.
Money-Free Zone: Musician Buck Curran’s style has been described as psychedelic folk, which sounds great to me. But his latest album, One Evening and Other Folk Songs, is more wintery and austere than that. I think it works, notably on the song Deep In the Lovin’ Arms of My Babe.
More PF from The Globe
– The little guy scraping a down payment together is a fading presence in the housing market
– Homebuyer tactics: ‘The stink bid is back’
– House swaps offer a unique and more affordable way to travel
– Do you suffer from money dysmorphia? Here’s why so many young people do
More Rob Carrick and money coverage
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