Latest / Best of Business / Mike Lee: UOA marketing professor on Jetstar looking to charge people extra for overhead carry-on luggage

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Mike Lee: UOA marketing professor on Jetstar looking to charge people extra for overhead carry-on luggage · Best of Business

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  Speaker 1: You're listening to a podcast from News talks'd be follow
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  Speaker 1: Heather Dupless in past five.
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  Speaker 2: Now Jetstar is going to start charging you to put
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  Speaker 2: your bags in the overhead locker. It'll set you back
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  Speaker 2: about twenty three bucks on an Auckland to Dunedin flight,
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  Speaker 2: for example, but you will still be able to take
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  Speaker 2: something small on board and that weight limit will lift
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  Speaker 2: from seven to ten kgs. Mike Lee is a marketing
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  Speaker 2: professor from Auckland University and with us Hime Mike Hi.
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  Speaker 2: Is this outrageous or just business?
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  Speaker 3: I think it's just business. It's an attempt to I guess,
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  Speaker 3: differentiate themselves perhaps from other carriers, and it does sort
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  Speaker 3: of raise a couple of interesting things I suppose. On
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  Speaker 3: the one hand, I mean, some consumers might really look
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  Speaker 3: forward to this and think it's a bargain because now
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  Speaker 3: they can cram you know, a couple of days, maybe
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  Speaker 3: even a week's worth of luggage into this new carry
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  Speaker 3: on system, which means they don't need to do the
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  Speaker 3: check in which they might normally do if they go
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  Speaker 3: over to the seven this conventional seven cag's so that
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  Speaker 3: means they can get on the planet off the plane quicker.
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  Speaker 3: On the other hand, others might think, you know, am
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  Speaker 3: I going to get sort of caught out now because
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  Speaker 3: if I've paid for the carry on but I go,
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  Speaker 3: you know, if it's too heavy, even though they say
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  Speaker 3: they're not going to enforce the ten kg limit, will
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  Speaker 3: I be stuck with having to buy the extra carry on,
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  Speaker 3: which the check in luggage, which is going to cost
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  Speaker 3: a lot more. And of course, one of the important
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  Speaker 3: things we haven't considered is what happens if you plan
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  Speaker 3: your trip around this ten kg carry on, but then
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  Speaker 3: you have to transfer and catch another carrier that isn't
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  Speaker 3: a Jet Star carrier, but they still have their seven
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  Speaker 3: kg carry on rule, so there could be some sort
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  Speaker 3: of logistical nightmares for customers hiding in the woodwork there.
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  Speaker 2: So probably best to ignore the teen cag's. Yeah, I
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  Speaker 2: don't mind it, because if I'm going to catch a
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  Speaker 2: jet staff like and I want to use the overhead locker,
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  Speaker 2: at least you know it's going to ration the space
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  Speaker 2: up there, because sometimes you get on board and it's
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  Speaker 2: all taken up with everybody's bags. I mean, yeah, am
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  Speaker 2: I am I being ridiculously kind to jet staff.
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  Speaker 3: No, No, I think that's a fair point. And they
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  Speaker 3: did mention that sort of rationalizing that space and sort
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  Speaker 3: of prioritizing people willing to pay for it, sort of
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  Speaker 3: a user pay system was part of their plan, because
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  Speaker 3: there is nothing more frustrating thing banking on, you know,
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  Speaker 3: the carry on plus the backpack that you get to
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  Speaker 3: take on to the handbag, and then you get there
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  Speaker 3: and you realize that for some reason, it seems like
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  Speaker 3: some people have been abusing the carry on sort of
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  Speaker 3: rule and it's all full, and then you've got this
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  Speaker 3: thing You've have to stuck a stick, you know, sort
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  Speaker 3: of between your legs with the backpack that you've also
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  Speaker 3: brought on. So I think this will rationalize some of
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  Speaker 3: that premium sort of overhead sort of space now and
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  Speaker 3: then of course they'll be making a nice little profit
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  Speaker 3: on that hopefully.
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  Speaker 2: Yeah. Okay, Mike, thank you for that. Appreciate it. Mike Lee,
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  Speaker 2: marketing professor at the university. We can see that wasn't bad.
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  Speaker 2: Why is JITs not talking about this today? They've done
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  Speaker 2: the old mic drop and run away. They've gone hey, guys,
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  Speaker 2: here's but no, we don't want to talk about it,
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  Speaker 2: see if they come on board. We would have chatted
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  Speaker 2: to them friendly as you like about it and we
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  Speaker 2: could all say this is a fantastic idea, but no
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  Speaker 2: BA scared.
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