Sun, Apr 01, 2012
Says Prospect Of Extra Cash Will Incentivize Airline To Better Performance
ANN April 1st Special Edition
Low-cost carrier Ryanair says it will begin requiring passengers to tip up to 20 percent of their ticket cost when their flights arrive on time or early, and their luggage appears on the carousel as promised.
CEO Michael O'Leary said in a news release April 1st that he took the idea from U.S. restaurants which often have a policy of automatically adding a gratuity to a bill for large parties. "The plane has, what, 50-150 people on board? That's a large party. We're again innovating in terms of revenue streams to keep the airline solvent."
O'Leary said the tips would be assessed for certain levels of performance. If the flight arrives on time, a passenger's credit card will be charged an extra 15 percent. If the flight is 15 minutes or more early, the gratuity increases to 20 percent. Passengers on an early flight who receive their luggage at baggage claim will be charged 20 percent. "It also incentivizes passengers to limit the number of bags they check," O'Leary said. "No tip will be charged for carry-on luggage, but any gate-checked luggage will receive a special tag and those passengers will be required to pay as they exit the jetway."
Asked if passengers on flights which arrive late or who do not receive their luggage would be offered a reduction on their fares, O'Leary said simply "really?"
U.S. flagged carriers are expected to watch the experiment carefully.
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