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What Can We Learn From Airline "Unbundling"?

New post on Zavee Thinking by Ron Stack, COO, about what businesses can learn from the airline practice of charging separately for food, baggage and other services.

Anyone who has flown recently has experienced what the airlines call “unbundling”: separate fees for optional services that used to be bound up in the ticket price. Unbundling means, for example, that a passenger who flies with just a laptop bag will pay less than a passenger who checks baggage in the hold. The passenger who fills up at McDonalds or Starbucks before boarding will pay less than the passenger who wants an airline meal. The economics of unbundling fees for ancillary services have been amply discussed elsewhere: The airlines do well and the passengers … well, it depends.

Read "What Can We Learn From Airline 'Unbundling'?" on Zavee Thinking.

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