I hate checking in bags at the start of a flight and waiting for them at the other end. So, I always travel with a carry-on bag. If there is no space left, there is a chance that you have to gate-check your bag. But I can only recall once instance where that has happened. It’s likely to be a more frequent event as I discovered on Sunday. Why?
United is now charging for checking in bags but carry-ons are still free. This increases the incentive to bring a carry-on where you might have checked-in a bag before. Moreover, if you are forced to gate-check your bag, you do not get charged. So, there is an additional incentive to carry-on a bag. So the optimal strategy will imply more passengers moving to “carry-on” from “check-in bag”. The two forces together meant that all the carry-on storage space was full by the time many people boarded my flight on Sunday and they were forced to gate-check their carry-ons.
This could end up being annoying for United if there is lots of gate-checking going on, delaying flights and distracting flight attendants. What should they do? Four options:
(a) Stop charging for checked in bags. Not an option United will choose as they need cash
(b) Start charging for gate checking carry-ons. This gives United the incentive to claim there is no room for carry-ons even when there is. Even if they are honest, no-one will belive it. This will to United broke my Carry-on as a follow up to United Breaks Guitars. Not a good option for United.
(c) Start charging for carry-ons. Seems like the most attractive option for United. Except no competitor is doing it. United has become more extreme than American with check-in bags: AA does not charge for the first checked bag. Is United going to be the first airline to take the next step and charge for carry-ons or..
(d) Stick with the status quo.
Cheap Talk 
7 comments
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September 15, 2009 at 10:47 pm
George
(e) Reduce the carry-on baggage allowance and enforce it. This is what Tiger Airways does and I’ve never had a problem finding room for my bag.
September 17, 2009 at 3:13 pm
sandeep
Thanks. I stopped the post a bit abruptly
September 15, 2009 at 11:27 pm
Kevin Bryan
Sandeep,
C will not work. Many, many airlines have considered this route, and it turns out to be surprisingly expensive. Among other things:
1) Marginal cost of carryon is ~0, but checkin is not (gate staff, handlers, liability). Particularly in the case of liability, most expensive items are not checked currently (think laptops).
2) Airlines are trying to cut costs but limiting interactions at the gate (e.g., online checkin). Higher price for carryon leads to more checked baggage, and therefore more interaction at the gate.
3) Logistically, it’s difficult. Presumably the customer would pay at the gate. Gates are not set up to handle a full plane of transactions. If you paid before arriving at the gate (a voucher, perhaps), you would need some verification at the gate, surely.
Even the most flier-unfriendly airlines – Ryanair, for instance – don’t charge at present.
That said, there has been a lot of talk about enforcing carryon bag size and weight, which is a widespread policy outside the US.
Kevin
(Btw, I’m an incoming grad student of yours, so I’ll see you this week!)
September 16, 2009 at 1:23 am
el chief
What happens if I bring carry-on, but it’s too large? Do I have to pay to check it?
September 17, 2009 at 3:16 pm
sandeep
Not sure but I think you don’t make it thru security as opening on scanner is calibrated to allowable bag size so you never get a chance to carry-on anyway.
September 16, 2009 at 6:29 am
Ross Parker
Option (e) is what most UK and European carriers that charged for checked bags do.
September 16, 2009 at 9:58 pm
Jennie
Just a correction to your (c). AA do charge $20 for the first bag and $30 for the second bag. Basically, this baggage fee is an extra tax for traveling families who’s kids are not old enough and strong enough to haul the largest carry-on allowed.