Free Checked Bags

What was Southwest Airlines' long-standing policy regarding checked bags?

• Two bags, no charge

• One bag, no charge

• Three bags, no charge

• No free checked bags

Why is Southwest Airlines introducing baggage fees?

• To make more money and improve efficiency

• To reduce the number of passengers

• To offer more free services

• To eliminate all fees

What is the zero-price effect as mentioned in the passage?

• People perceive free items as more valuable than they are

• Free items are always of lower quality

• Free items are always included in the ticket price

• Free items are never truly free

What is one reason Southwest Airlines is unbundling its pricing?

• To introduce a cheaper base fare

• To increase the number of checked bags

• To offer more in-flight meals

• To provide free seating options

What is the expected annual revenue from Southwest's new baggage fees?

• $1.5 billion

• $1.8 billion

• $2 billion

• $1 billion

What is the main reason customers are upset about the new baggage fees?

• Loss aversion

• Higher ticket prices

• Longer wait times

• More baggage handlers

What is the potential benefit for carry-on-only travelers with Southwest's new pricing model?

• Lower base fares

• More free checked bags

• Priority boarding

• Free in-flight meals