Friday, May 4, 2018

The Too-Many-People Problem

Business magazine Forbes runs an article arguing against a proposed federal regulation limiting airlines' ancillary fees (rebooking, checking luggage, etc.) to the actual cost each engenders for the airline. Forbes argues that doing so will raise airline fees and reduce ridership, as though those are necessarily bad things. Hat tip to RealClearMarkets for the link.
Since the government ended its practice of dictating prices and routes for airlines some forty years ago, the cost of flying has fallen immensely, which has allowed millions of people who previously could not afford to travel via airplane to do so. No small part of these gains have come from the optional services and price competition between carriers that resulted.
Those gains are a benefit if you love that every poor person who wants to go somewhere can afford to be on the plane with you. If you'd rather there were fewer people on board, more elbow and overhead compartment room, and less crowding at the toilets, perhaps it is not a benefit.

If you're someone who would likely be flying anyway, even if fares were, say, 10-15% higher, dropping the fees and raising the prices might make for more pleasant flying. Perhaps you wouldn't have to share the overcrowded skies with "millions of people who previously could not afford to travel via airplane." Plus imagine how happy it would make Greyhound.
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I'm reminded of the contrasting experiences I've had touring Versailles and Machu Pichu. Versailles was so packed with people you could hardly see the decor or move, the only place that was nice was outside on the grounds where the crowding was less. In a word, it was "unpleasant" and I have no desire to return.

The Peruvian government takes reservations and sells a limited number of tickets to enter Machu Pichu each day, thus the grounds do not become a mob scene - there is room to wander and enjoy the stunning views. Machu Pichu was very nice; I am truly sorry I no longer feel up to the physical challenge of hiking around that Andean mountaintop.