European regulators want hand luggage reclassified as a basic service included in the airfare, not an optional add-on. Same logic that killed abusive roaming charges in 2017: if it's a consumer right, you can't unbundle it.
According to Revista Bell, the price unbundling that airlines and hotels have practiced for 30 years (baggage separate, breakfast separate) is now under scrutiny. The EU monitors misleading pricing and this will force Pricing and Marketing teams to rethink their strategy.
My take: the unbundling model has reached an ethical ceiling. Charging 40 euros for a suitcase that fits in the overhead bin is not innovation, it's abuse. Revenue Management teams better get ready: the next frontier of RM is no longer dynamic pricingDynamic pricingDynamic pricing adjusts rates in real time based on demand, competition, lead time and other factors. Instead of a fixed price, the hotel goes up when pressure is high and down when supply is loose. It is the foundati..., it's regulation. The customer is not stupid and Brussels gets it.
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