If you thought Wendy’s dynamic pricing scandal was bad, JetBlue is showing it’s not afraid to follow suit and adopt the controversial pricing model. If you’re planning any trips this summer, checking your bags could cost you more.
JetBlue To Use Dynamic Pricing on Checked Baggage
JetBlue is introducing dynamic pricing for checked baggage, which means it’ll be more expensive to check in your bags during peak hours. Dynamic pricing is a strategy where businesses increase prices at high-volume times and lower them outside peak hours.
Airlines are known for using dynamic pricing on their flight tickets. If you’ve ever tried booking a flight abroad during a peak holiday season like Christmas or summer, you know how much prices can fluctuate and increase.
Successful Companies Have Been Using Dynamic Pricing To Boost Profits
Companies like Uber, Airbnb, and Amazon all use dynamic pricing, which has been a key factor in their massive growth and success.
You’ve probably noticed dynamic pricing when visiting amusement parks like Disney World during peak season or when booking hotels. Hotels will typically lower rates for their rooms outside peak travel times to encourage more travelers to visit during the off-season and increase them during popular periods.
Dynamic pricing on checked baggage is the latest change that could be seen at more airlines in the future.
JetBlue Hopes Latest Change Will Offset Rising Costs
As luggage handling costs rise, airlines have had to introduce higher prices to manage and keep their businesses afloat. In a statement to CBS News, JetBlue said the cost of transporting bags has increased dramatically due to higher fuel costs and increased wages. The airline also revealed that it has been unprofitable since the pandemic.
JetBlue is looking to make the company profitable again with these latest changes. The company has struggled with financial hurdles, losing $104 million on an operating revenue of $2.3 billion, according to its fourth-quarter results of 2023.
How Will the Latest Price Changes Affect Your Travel Costs?
Are you wondering how these new prices will affect your travel costs? According to the JetBlue website, paying for your bags beforehand could save you money. If you pay for your checked bags more than 24 hours in advance, you’ll save $10 each when checking your first two bags.
Paying closer to the flight and booking a flight during peak season will come with a heftier price tag. JetBlue outlines some of its peak-season holidays, which include Thanksgiving, Presidents’ Week, winter holidays, and peak spring and summer travel seasons.
Ways You Can Save When Booking Your Next Flight
Fortunately, there are plenty of ways to save money on flights. To save money on your next flight, you can opt for JetBlue’s cheaper ticket tiers: Blue, Blue Basic, and Blue Extra.
Booking your first checked bag’ll cost $45 during off-peak times and $50 during peak hours, while the second checked bag will cost $60 off-peak and $70 for peak times.
