JetBlue Airways next year will put a price on checked bags by introducing three tiers of branded, bundled fares, each with a different checked-bag allowance.
The carrier also revealed plans to reconfigure its fleet to add more seats, reducing some seat pitch.
As announced earlier this year, the carrier in the first half of 2015 plans to launch new merchandising platforms on its website, courtesy of a partnership with e-commerce software provider Datalex, and on its kiosks via IBM. JetBlue senior vice president of commercial strategy Marty St. George, speaking Wednesday at the carrier's Investor Day, said the bundles would be dynamically priced, a "better strategy than a static [bag] fee."
Although he did not reveal details about pricing or the exact offerings each bundle would include, he did make clear that the lowest-fare tier would not include any complimentary checked bags, the middle tier would include one free checked bag and the highest-fare tier would include two complimentary checked bags. All fares still include snacks and television access, and the higher fares also will include some level of TrueBlue frequency-program bonus and extra flexibility regarding terms. Compared with other carriers, the bundles most resemble those currently offered by WestJet, which also partnered with Datalex, and Lufthansa-owned Germanwings, according to St. George.
JetBlue to date had eschewed charging for a first checked bag, but St. George said that perk has been "moving down the charts" in terms of what was most important to travelers.
"We're seeing more and more morphing in what pieces of the customer experience that customers are willing to pay for," he said. "Less than half of our customers check a bag, so most customers already are paying for the service of checking a bag without using it."
Additionally, the new merchandising platforms will adapt to the International Air Transport Association's New Distribution Capability data transmission standards. That will allow for more selling through agency platforms, which St. George said currently are not big channels for JetBlue.
JetBlue estimates the new bundles ultimately will add $200 million in revenue annually.
Tightening Space
The carrier also announced that it would begin in mid-2016 reconfiguring the cabins on its Airbus A320 fleet to increase the number of seats on each plane. JetBlue will add slim-line seats similar to those currently used by Lufthansa and Cathay Pacific on international routes.
The configuration reduces the core pitch slightly but keeps coach legroom larger than its competitors, St. George claimed. The seats also feature larger seatback screens with more entertainment options, according to the carrier.