Are airlines taking a cue from magazines, Netflix, even Internet and cable packages?
This summer United Airlines introduced yearlong baggage subscriptions (check up to two bags on all your flights within the continental United States, starting at $349) and Economy Plus subscriptions (more-legroom seats on all your flights, starting at $499) that you can also give as gifts. In September, Delta rolled out its own subscription program, Smart Travel Pack ($199), which gives fliers features like priority boarding and preferred seats on each flight they take through Jan. 5. And if you regularly fly American Airlines, you know that last year the airline began bundling amenities, like no change fees and in-flight beverages, into a variety of "choice" fares.
"This really is what the cable companies do," said Gary Leff, a founder of Milepoint, a frequent-flier forum, and the mileage-award booking service Bookyouraward.com.
Airlines are experimenting with subscriptions and bundles at a time when they are raking in money thanks to fees for à la carte add-ons like early boarding and roomier seats. Their collective ancillary revenue from these amenities is now more than $27.1 billion, more than doubling since 2009, according to a new report by IdeaWorksCompany, a consulting company.
If you're frequently checking bags and buying seats with more legroom, a subscription may sound tempting. But does it pay to join? Here's how to figure it out.
1. ANALYZE YOUR CURRENT FLYING STRATEGY. To determine whether or not you'll get value out of a subscription, ask yourself how much you plan to fly during the subscription period and where you plan to go. By buying a subscription you are essentially tying yourself to a particular airline, so you need to find out how regularly it flies to and from your desired cities, and whether the seats you are paying for are actually available. If, for instance, most of your flights will be on regional jets that do not have seats with more legroom, there is no point in buying a package where those seats are your main draw.
And check fares on competing airlines. By buying a subscription you might save money on incidentals, but if the fares for the routes you fly are cheaper on other airlines, it simply doesn't pay to commit to one brand. A good rule of thumb is that subscriptions are best for travelers who fly frequently, but not enough to reach elite status, which, in many instances, would allow you to get those perks at no extra cost. "If you're flying a single airline 10,000 to 20,000 miles a year, then the subscriptions make good sense," Mr. Leff said.
If you're flying only two or three times a year, experts say, take a pass, because you may not fly the same airline each time. And even if you do, chances are you will not be doing so often enough to reap the benefits of a subscription, as opposed to simply buying the amenities you want à la carte.
2. CONSIDER SPENDING MONEY ON AN AIRLINE CREDIT CARD INSTEAD OF A SUBSCRIPTION. In general, the subscriptions "give people access to the kinds of stuff that airlines give at no cost to their bottom-tier frequent fliers," Mr. Leff said.
So instead of buying a subscription, consider paying the annual fee for an airline co-branded credit card, which will duplicate a lot of the same benefits as a subscription. Many airline credit cards, for instance, give users priority boarding along with other perks like a free checked bag.
"You could get one of their credit cards for less than that plus a whole lot of bonus miles," said Brian Kelly, the founder of the Points Guy Web site, which chronicles the world of frequent-flier miles and travel points. He added one caveat: the points you earn using an airline credit card are banked for a single airline, which is limiting as far as travel points go. But if you know that you'll mainly be flying that airline, it may be worth it.
3. READ THE FINE PRINT. Just because you sign up for a subscription does not mean that you will always be able to reap the benefits.
For example, United's Economy Plus subscription program includes roomier seats — when they are available. Not all flights will have the seats.
Or consider Delta, which includes priority boarding in its Smart Travel Pack. If you primarily take Delta Shuttle flights, note that the airline does not offer priority boarding on those flights.
Another wrinkle is that more-legroom seats can cost more on international flights. On United, a "global" Economy Plus subscription is an additional $200 on top of the $499 annual fee. If you're flying to, say, Asia frequently enough to be considering that package, Mr. Kelly suggests just focusing on achieving status in United's frequent-flier program instead. "One Asia round-trip, depending on how you route it, could get you Silver status," he said.
4. RECONSIDER YOUR ALLEGIANCES. Whether these subscription programs will prevent elite travelers (without subscriptions) who book last-minute tickets from scoring preferred coach seats will depend on how well the airlines manage that inventory. If they continue to hold back some seats for their best customers, it won't be an issue. But if the airlines presell all of their most desirable seats to travelers willing to pay extra for a subscription, elites could lose out, particularly in leisure markets where tickets are typically sold far ahead.
If you do have status, but not enough to receive regular upgrades, you might consider switching airlines, rather than buying a subscription. After all, being an elite doesn't necessarily mean you get a better deal. Every so often, the best deals have nothing do with status or subscriptions.
As Mr. Kelly noted after using his elite status to nab an economy comfort seat on a KLM flight:
"I realized it's 34 inches of legroom. That's what JetBlue gives to all of its customers."
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