I'd Bag These Airlines

For the last year regular air travelers have been frustrated with the baggage fees. First toted as a result of the high cost of fuel, many airlines kept the new fees in place long after the price of fuel dropped back to a manageable level. After all a new source or revenue is always a plus in business. Now it seems that some airlines are at it again.

This morning I read an article in the Denver Business Journal stating that both Delta and Continental are raising the price of of checking baggage. Turns out these two airlines aren't the only ones. United is also upping the prices for bags. I'm curious to the effects that the baggage price hikes have on overall purchase traffic.

Lets look at a real life example, I did for a search for flights from Houston to Denver for February 17-21. Lets assume that I am coming out for a snowboarding trip and bringing my own gear. I'd have to check both bags. Lets also assume that I'm flying non-stop and sticking with the same airline for frequent flyer mile earning purposes.

Frontier

The cheapest ticket is $222.90 on Expedia.com with taxes. Factor in the baggage ($20 for first and $30 for second) for both ways and I pay approximately $322.90

United

The cheapest ticket is $222.90 on Expedia.com with taxes. Factor in the baggage ($25 for first and $35 for second) for both ways and I pay approximately $342.90

Continental

The cheapest ticket is $220.90 on Expedia.com with taxes. Factor in the baggage ($25 for first and $35 for second) for both ways and I pay approximately $340.90

Southwest

The cheapest ticket is $228.30 with taxes at their want to get away rate. Factor in the baggage (free) for both ways and I pay approximately $228.30

When I'm booking a trip that seems like a pretty significant difference. We already hear news stories toting how other airlines are having trouble competing with low cost carrier Southwest. I'm curious, how do airlines think this will be financially beneficial in the long run? For me there is no contest. Price wins out in the end.