Micro-purchase is all the rage across the internet. The travel industry, and airlines in particular, are among the first to bring the micro-purchase concept out of cyberspace and into your daily life. It is a tentative role that toggles between micro-options and micro-annoyance. In this article, we will explore the forces at play within the industry, what micro-purchase strategies are working, what is failing miserably and why. If you have considered micro-purchase or options-based strategies for your own business, it will pay to take a lesson from the airlines before repeating their mistakes. Ancillary fees have been around for years in the airline industry but have just recently approached the line where passengers may revolt. In the Ultimate Guide to Airline Fees we find a detailed comparison of fifteen major airlines on 12 common fees including: first checked bag, second checked bag, additional bags, overweight bags, oversized bags, ticket changes, booking, unaccompanied minors, pets, seat selection, in-flight food, and pillow and blankets. Designed to fit on one page, this chart was forced to leave a few newer fees out including: overweight passenger, early boarding, early check-in, fuel, ticketing, and soon perhaps toilet use. That makes more than 17 fees, some mandatory as “surcharges” and some deemed “options.” These fees work in a sense. Airlines enjoyed revenues of approximately $1 Billion in 2008 and $3.6 Billion in the first half of 2009 from such surcharges and options. Consumer reaction has been vocal, mixed, and even comedic. The effect of these micro-options, however, is no laughing matter. It is an effect that alters the very business processes within the airlines. If your business has considered offering micro-options or an ancillary fee structure, you would be wise to look deeply at the airline industry with an eye towards the ripple effect on business processes. Anticipate the short term gain and prepare for customer shift. Consider the effect of each option and of the existence of options itself on your business processes. Lastly, for every business in every industry, your customers will reach a point where they decide your business is not worth the effort. Know where that line is drawn and stay well clear.
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Keywords: micro-purchase, micro-options, micro-fees, ancillary, fees, airlines, options, process, business, trend, watch, list, 2010, advantage, strategic, competitive
