Northwest Airlines Frequent Flyer Program

Delta rakes in $1.7B in baggage fees

Airline baggage fees are bringing in suitcases full of cash for Delta Air Lines, the dominant carrier in Metro Detroit. Airlines profits depend more on passenger fees than ever before, and Delta is flying with the highest total fees of any airline.

The Atlanta-based carrier hauled in $952 million in baggage fees last year — more than any other carrier, according to data from the Department of Transportation. Delta also racked up the top total in reservation cancellation and change fees — a whopping $699 million. That's 64 percent and 48 percent more, respectively, for baggage and ticket change fees than American Airlines, the second-biggest collector of those charges, brought in during 2010. Delta declined to comment Tuesday.

All together, Delta is collecting $1.7 billion in fees beyond what passengers pay for tickets.

But those fees are the tickets to profits for the nation's airlines, which struggled through the past decade before being hit by soaring oil prices and the recession. Federal data shows that airlines collected $5.7 billion in baggage and ticket-change fees last year, and although official statistics won't be released until later this month, one industry trade group estimates North American airlines eked out a profit of just $5.1 billion in 2010.

"Without baggage fees, the industry would have lost another $3 billion to $4 billion last year," said Bill Swelbar of the International Center for Air Transportation at the Massachusetts Institute of Technology. "We've had two years where the bag fees have been in effect. They're not going away."

Baggage and other fees not only help airlines edge into the black, but also are a way to make ticket prices appear low to online bargain-hunters.

Out at Metro Airport on Tuesday, Tom Gropp, a flier from Denver, said he understands that profits are behind the charges for checked baggage. "They do it because they know most people shop ticket prices," he said.

Gropp, a small business consultant, travels under a frequent flyer program that waives the fee for his checked bags.

People who don't travel often may not think of the cost, but that's changing, he said. He's noticed more people carrying bags on board and stuffing them into overhead compartments. "People are getting hip to it," he said.

Just how high fees have soared is obvious when you look at Delta's last few years of fee income. Besides the pressures of rising fuel prices and recession-stricken travelers, Delta's merger with Northwest Airlines may also be behind its new fortune in fees.

Jetsettersblog » Langham Hotels Expands Loyalty Program

Langham Hospitality Group has expanded its 1865 guest loyalty program to capture new members earlier and build on their loyalty. For guests booking club level rooms or above at any property in the group, they can also earn double frequent flyer points with selected airlines until Aug. 31.

The newly expanded program now contains four tiers instead of three with the creation of a new entry-level tier to generate more repeat stays and commence the recognition process of potentially loyal guests from their first stay. The new tier offers the key benefits of an express check-in and check-out as well use of 1865 Ambassador reception service. It also offers complimentary newspaper, frequent flyer mileage accrual and, from time to time, member-only special offers. As the guest stays more frequently, additional rewards will eventually include priority and personalized services, upgrades and even complimentary limousine transfers at the Destiny invitation-only level.

The 1865 program consists of four tiers with increasing levels of benefits — the entry level tier (at least one stay required), Gateway (three stays required), Voyager (five stays required) and Destiny (by invitation only). The 16 participating frequent flyer programs are Air China Phoenix Miles, Air New Zealand Airpoints, American Airlines AAdvantage, Asian Club, British Airways Executive Club, China Eastern Miles, China Southern Sky Pearl Club, Delta Skymiles, Emirates Skywards, Eva Air Evergreen Club, Jet Airways JetPrivilege, Qantas Frequent Flyer, Qatar Airways Privilege Club, Singapore KrisFlyer, Thai Airways Royal Orchid Plus and United Airlines Mileage Plus. For reservations at either Langham or Eaton properties, or more information, visit www.langhamhospitalitygroup.

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