The industry is watching closely as one airline tests planned carry-on luggage fees that also target its Hawaii flights. Could this start a domino effect, reshaping the cost structure for travelers heading to the islands? In the past couple of years, at most, we have all had to become accustomed to seat assignment fees, and even customers still balk at those.
Hawaii flights have long been a battleground for airline competition and testing. Still being watched closely by other airlines, this latest move raises questions about where the next passenger fees are heading.
You never know where Beat of Hawaii is going to pop up.
This morning, as BOH editors headed out to Waikiki Beach to snap the lead photo of the carry-on bags, a woman couldn’t help but notice Jeff was walking toward the ocean—carrying two carry-on bags, no less. With a grin, she called out, “There’s an easier way to get to the airport than through the ocean!” That got everyone laughing, and before long, introductions were made, and she discovered Beat of Hawaii.
It turned out she was actually visiting from Canada and had flown to Hawaii on Air Canada. Marika, from Ottawa, shared her relief that she arrived before the airline’s proposed carry-on bag fee kicked in. But that didn’t stop her from voicing frustration over the mounting fees for both checked and carry-on luggage. “It’s just too much,” she said.
That said, Marika admitted there’s one fee she feels is worth it: extra legroom. For long Hawaii flights, she said it’s her go-to upgrade. “I’d take that over business class any day,” she added.
A quirky encounter, an ocean joke, and a bit of travel wisdom—it’s all just another day at Beat of Hawaii.
Hawaii’s unique market dynamics encourage fees.
Hawaii flights stand apart from shorter domestic flights due to duration and high passenger demand, with a leisure-heavy focus. For airlines, the opportunity to introduce carry-on fees in this space might seem like a lucrative gamble. Unlike short-haul flights, Hawaii routes involve extended travel, where passengers rely more, in this case, on carry-ons to avoid long waits at baggage claims. This creates a prime testing ground for fees that might otherwise face resistance. It has worked well, too, for airlines achieving success with seat assignment fees.
One carrier now leading this charge, Air Canada, aims to normalize fees for what was once considered a complimentary service. If successful, it could fundamentally alter how travelers pack for their Hawaiian vacations, no matter the airline.
From checked to carry-on: the next shift in strategy.
While checked baggage fees have been standard for years, we passengers almost accept them or pay for branded credit cards to avoid the carry-on bag charges, introducing an entirely new layer of costs that have barely begun to be explored.
Airlines already generate billions annually through ancillary fees, but carry-on charges target a behavior most passengers assumed was safe. By reframing carry-ons as another premium service like seat assignments and checked bags, rather than a basic entitlement, airlines seek to maximize profits on every inch of overhead bin space and perhaps under-seat space.
This move is not unprecedented. Budget airlines like Spirit, Frontier, and Allegiant, as well as European discount carriers, have long implemented carry-on fees. However, applying these charges to domestic flights, including Hawaii flights, would set a new precedent. A prominent carrier like Air Canada moving in this direction may well open the door for legacy carriers to follow suit, eroding the line between low-cost and full-service airlines.
The potential ripple effect across the Hawaii travel industry.
If this airline’s strategy works, it’s unlikely that Alaska/Hawaiian, American, Delta, and United will entirely ignore the additional revenue potential. Legacy airlines serving Hawaii could use this opportunity to introduce similar fees to remain competitive.
Southwest Airlines, which prides itself on offering two free checked bags and no carry-on fees, is at a crossroads regarding its ability to maintain its unique selling point.
The broader question is whether passengers will accept these changes, as they have with all the other airline fees. Will travelers adapt and pay the extra fees, or will backlash force airlines to reconsider? Hawaii’s tourism economy already sees ripple effects as higher travel costs deter some visitors, particularly those on tighter budgets.
What this means for Hawaii travel strategies.
Navigating these potential changes may require new planning for travelers to Hawaii. For example, avoiding fees could mean downsizing to smaller personal items, if that is even conceivable, or rethinking packing strategies.
Co-branded airline credit cards that waive some fees might become even more valuable, while those and loyalty programs could provide some buffer, at least for more frequent travelers. For example, Alaska/Hawaiian plans to introduce a new feature-rich $395/year credit card next year.
The road ahead: Will Hawaii travelers push back?
History shows that passengers vehemently abhor and resist these new airline fees initially but eventually adapt. When checked baggage fees were introduced, they were criticized but are now widely accepted. The same was the case with seat assignment fees, which many of us now see as unavoidable. A similar trajectory may unfold for carry-on charges, especially with airlines depicting these as necessary for maintaining low base fares for Hawaii flights.
Still, Hawaii travelers have unique expectations. Many visit the islands as a once-in-a-lifetime or bucket-list destination, and the added cost of carry-on fees might feel particularly off-putting. This could challenge airlines to strike a balance between profit and passenger satisfaction.
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“… When checked baggage fees were introduced, they were criticized but are now widely accepted.” I don’t think saying accepting it is quite correct. More like resigned to it. what can you do?
If Southwest ever starts charging for any bags or carry-ons, it’s over for me. Their free bags are the only thing keeping me loyal at this point
I too love the idea of extra legroom instead of business class for long domestic flights in single aisle planes. It’s way cheaper and still makes a big difference in comfort
We’ve already seen this happen with low-cost airlines, so it’s no surprise others are following suit. Hawaii flights just got a more expensive, I see it coming. They will all jump on board if they think they can.
I actually don’t mind paying for extras if it means I can get a cheaper base fare, as Air Canada had indicated, but at the same time carry-on fees feel like they’re crossing a line.
I can’t believe airlines are even thinking about charging for carry-on bags now. It’s getting ridiculous. What’s next, fees for breathing onboard?
The Air Canada change is Only for Basic Economy. You do Not have to buy BASIC.
United also does not allow carry-ons with Basic economy fares.
Spirit, Frontier, Allegiant, Avelo, Breeze – all charge for carry-ons with their cheapest fares. You get what you pay for.
As much as I hate all the extra fees I think this is brilliant! I never understood why I have to pay extra because I check my bag vs those who cause most of the boarding issues. They are the ones who hold up boarding and try to cheat on the boarding process. You should have to pay the “convenience” fee now you dont have to wait for your bags at the carousel.
I generally pay for an upgraded seat and watch all of the hassel the carry on bags cause.
In addition this would help with the long lines at TSA (just saying!)
How about eliminating overhead bins and putting your personal items under the seat?
I am not totally opposed charging people for bringing all that stuff with them when coming to Hawaii. Here is an idea: don’t have that charge when they are leaving the island. After all, we want them to buy stuff here to help the economy.
Just like Vegas, the airlines slowly start to nickle and dime you for everything. I think congress will force the airlines to change their ways.
Well, we have all seen how the ‘must fit this size’ bin guide for carry-ons is ignored by today’s flying public. How many of those ‘personal item’ bulging textile bags would comply with carry-on restrictions??? Very few, if any. I’ve seen people boarding with bulging backpacks and similar ‘personal items’ that fill/jam-up the overhead bins, because they didn’t want to pay the bag fees or wait for the baggage unloading and carousel pick up. (I watched anxiously as one boarder indifferently mashed the Panama hat I had foolishly placed in the overhead bin with his huge ‘personal item’!). Carry-on fees are coming, get used to it.
As soon as airlines have started charging for Carry-on bags(ie.. Frontier, etc), I shifted to other airlines. Same with cramped seating (ie.. United). There are just certain things that just go over the line and make we drop certain airlines from consideration when flying.
It seems that Canadian airlines are trying to confuse travelers. Porter claims that offer a lot of the premium comforts that are lacking on WestJet (WJ) and Air Canada (AC).As I understand it, Porter’s planes use the 2-2 seating arrangements, they offer complimentary wifi and beverages (including beer and wine). This dragged A.C. into offering beverages and wifi on some of their flights. WestJet brought in an Ultra Basic class with no carry on baggage, no seat selection, last to board, etc. Now AC has changed to match (compete?) by charging for carry on luggage. The four airlines testified on Friday infront of a Parliamentary committee saying basically they have to do this to be competitive and travellers look for the cheapest fare not the total ticket cost (not me btw). With government oversight, the airlines might change, however they won’t start writing the report until January, when AC already starts charging the fee. Find out your total cost before buying your ticket.
Good post. In addition the airline executives providing testimony regarding business models, etc… they were pointing the finger right back at the government for their part in the high costs of flying in Canada, namely ridiculously high airport fees charged by the airports/government to the airlines.
Our low cost airlines try to start up, end up mired in debt and that’s it, they are gone. Our legacy airline, Air Canada, is in trouble, the smaller airlines are as well.
Like so many things “government” these days, another mess. The whole Canadian airport cost structure of rents, fees, landing fees, etc..needs a big overhaul.
Here’s a great business opportunity for someone–low-cost shipping from the mainland to Hawaii.
new business for Amazon – they now have their own planes flying to HI – and I’d guess there’s some or a lot empty space going back. Offer cheap baggage shipment back to an Amazon location for pickup or delivery.
Considering to what lengths some passengers will go to skirt the rules and how tolerant crews are during the boarding, these fees may actually work to decongest the cabin. Also, there won’t be so many people trying to board ahead of everyone else just to get the space in the overhead bins for their “carry-on” luggage.
All of a sudden you’ll realize how overhead bins have more than enough space for hundreds of passengers. Anything larger than a typical women’s purse, or anything that can’t fit under the seat, especially if it looks like a suitcase shouldn’t be considered a personal item.
This won’t be popular, but perhaps could be offset and incentivized by lowering the checked luggage fees or even incentivize further by offering first checked bag for free.
Offer 1 free checked bag. You’ll see less carry on which means faster boarding, higher loyalty, customer satisfaction. Easy solution for non-bean counters.
Money making idea – how about if Arline’s charge extra for wearing clothes in planes?
I would fully expect the other passengers would pay to have me fully dressed! 😆