Photo courtesy of Spirit Airlines
It may be the airline people love to hate, but there’s no denying that flying Spirit Airlines can save you some serious bucks. Paying for carry-on luggage and a plastic cup of tomato juice can make fliers feel tricked, but listening to Spirit CEO Ben Baldanza tell it, he and his airline are straight shooters. To learn more about the philosophy and customer service of the airline, we asked Baldanza a few questions, and here’s what he had to say:
Q: Spirit Airlines uses the unbundling of airfares — which you call Bare Fare — to keep costs low. How does this model work, and why did Spirit decide to go this route?
A: We know through multiple surveys that the most important factor that people use when deciding to purchase air travel is price. We watched how customers approached their personal air travel. While some people bring checked bags, many don’t. While some bring a roll-a-board carry-on, many fly with only a back-pack. And we looked at what behaviors cost the airline more money and time and which didn’t.
We also saw the emerging unbundled model with European carriers. While it was unpopular at first, it had become accepted and more popular with European travelers because they could travel to other European countries many times for less than it took to take the train.
Then, we decided to build a fare program that kept fares as low as possible to provide only what is necessary to get our customers from point A to point B. We made the other offerings that are typically bundled into other airlines fares — checked and carry-on bags, snacks and refreshments, seat assignments, having gate agents print boarding passes, and anything else that a consumer would consider optional — an extra charge.
The results have been terrific. We are delivering on providing what consumers want most — lower fares. According to the Department of Transportation statistics our fares are on average 40% lower than other airlines — and even after our customers add on other items like seats, bags, etc., our total price is still 30% lower on average.
2. Do you think ethics comes into play when it comes to bundling vs unbundling fares?
Absolutely! Some of the most important components of ethics are honesty, fairness and transparency. If you go to Spirit.com, you’ll see that we go to great lengths to be very clear about what the Bare Fare is, and what it is not. Other airlines who bundle their product build all of the costs of every possible item or service into their total fare, and the customer has no choice but to purchase those items, even if they don’t use them.
I think it’s definitely an ethical issue when you tell somebody that an item is “free” and then you charge them for that item in a bundled fare. If you want to say the item is included in your fare, that’s fine — but many airlines still say they are giving these items away for free, and it’s just not true.
Finally, just the cost of flying on many airlines is unfair. Airfares are often cost prohibitive for many people to choose air travel. But if you offer a fare that most times costs less than the cost of driving to the same destination, all of a sudden more people have access to flying.
3. Are there any misconceptions that exist about bundling vs unbundling fares?
The major misconceptions are that people think because they aren’t paying for an item or service when a fare has been bundled, or that anything is free. It’s not.
Because consumers are paying such low fares there is a misconception that Spirit’s planes are old, unsafe and not properly maintained — and nothing could be further from the truth. We are held to the same safety standards as every other airline. We have rigorous maintenance programs that keep our planes flying. Our planes are actually the youngest fleet flying today.
4. Many travelers accuse budget airlines of nickle-and-diming passengers and swapping comfort for budget. What would you respond to this?
It’s funny. When I worked at U.S. Airways and Continental (now United) Airlines, I stayed up at night trying to figure out ways to charge people more money for their airfare by adding items to the service and hope they wouldn’t get upset about it. Today at Spirit, I stay up late at night trying to find ways to lower peoples cost of flying, and hope they don’t get upset by it.
Customers are more than willing to swap comfort to save money. As for what Spirit offers in the way of comfort, we’re not saying “Take this seat with a 28-inch pitch, and like it because you have no other choice.” We’re saying, “If you can handle being in a seat that’s a little cozier than what you might get on another airline — like the vast majority of passengers — great. You’ll save even more money; however, if you want or need extra leg room or a bigger seat, we have that option available to you, for an additional charge.” Our upgrades are less than what the other airlines charge.
As for nickel-and-diming. It’s just not accurate. We make it very clear what you get for your very low airfare and what you don’t.
The small percentage of passengers who book their Spirit flights on third-party online travel agency sites don’t receive the transparency we provide on Spirit.com. In those situations, we can understand they feel nickel-and-dimed, because they are used to paying for everything in a bundled fare and they weren’t warned by the third party online travel site that there are extra charges for optional items. We’re working on ways to reach those who book on these online travel sites, to provide the necessary pre-flight education, but that takes time.
5. In terms of comfort, what should fliers be willing to give up when flying Spirit, and what luxuries can they expect?
Every flier on Spirit should expect a safe, clean, aircraft, a seat and a place for their personal item. They should also expect the flight crew to be friendly and trained to take care of each passenger’s safety, their most important job. If a flier wants to have the absolute lowest price available for their air travel, these expectations will serve them well.
I wouldn’t categorize anything on a Spirit flight as luxurious, as luxuries lead to higher fares.
6. What can travelers expect for the future of Spirit Airlines in terms of fee structure, amenities and customer service?
You won’t see many changes in how we charge for optional items. If our costs rise for handling bags, or for any other item that is currently unbundled, then we’ll raise those prices accordingly, but only to cover our costs.
We plan to offer a bundled fare so people can actually compare what a bundled price costs. We don’t think anyone will actually take it when they see the difference in price, but it will give them the option.
We’re looking at ways for customers to save money on many items that they’ll likely incur during most leisure trips. Currently they can book hotels and rental cars during their booking process, but there are other services that people might find interesting, especially if we can save them money on the purchase. For example, we’re looking at ways people can pre-pay for their parking at the airport, or if you’ve booked a hotel in a certain city, say Myrtle Beach, we’re also looking at program that will allow customers to book a tee time.
7. To fliers who say they’d never fly Spirit, what would you say to them?
Spirit isn’t an airline for everybody. If somebody wants to pay much higher fares for a bundled, all-inclusive service we understand. In fact, there may be a scenario, where if you need to check two bags, bring a carry-on, and add on multiple other items, it might be more cost effective to fly another airline.
We certainly don’t cater to the corporate business traveler as they are not as price sensitive as those who purchase their own tickets. The business traveler who does love us, however, is the small business owner who pays for their own flights.
We also know that many people have made the grand statement that they’ll never fly us again. Sometimes it’s because of a cancellation due to weather, or a TSA or airport issue. But the fact of the matter is, we know that most people make their flying decision based on the cost of their next flight. They do the math on how much it would cost for bags and seat assignments, then decided to book with us because of how much money they would save.
Jessica Festa is the founder on the solo and offbeat travel blog, Jessie on a Journey, and the online responsible tourism and culture magazine, Epicure & Culture. She’s constantly searching for local experiences beyond the guidebook. You can follow her travels on Facebook, Twitter and Instagram.