Convenience vs. Pricing: Luggage Shipping Companies Take on the Airlines

PHOTO: Check ‘em, or ship ‘em? It’s a question of money vs. ease

U.S. airlines collected a record $6 billion in baggage and reservation change fees in 2012, the last year figures were available. And while many of these ancillary fees have helped return the industry to profitability, some passengers cringe at the thought of continued a la carte pricing for everything from second bags to extra legroom to premium meals.

Enter the burgeoning world of luggage shipping service companies.

Though still a very small, segmented piece of business, luggage service companies are becoming more prevalent, in part boosted by a high-profile TV appearance by one of those companies, Lugless, on the show ‘Shark Tank.’

Now it’s become a question among travelers of pricing vs. convenience.

“We saw a huge trend forming within our former business and thought this would take off,” Brian Altomare, founder of Lugless, told TravelPulse.com.

Altomare’s previous company was BoxMyDorm.com, a shipping service that helped students ship their stuff anywhere in the country. But that was obviously seasonal; Altomare and other companies saw the 365-days-a-year void where travelers could ship their luggage from door-to-door and have it waiting for them at their destination.

In addition to Lugless, there is Luggage Forward, Luggage Free, SportsExpress, BaggageQuest and Send My Bag, among others. Send My Bag, based in the United Kingdom, had a similar start to Lugless in that it shipped bags and other materials for students going off to college.

In 2011, CEO Adam Ewart saw the demographic shift and started Send My Bag.

“Luggage is not something that is always considered when researching or booking a holiday,” he said, “but increasingly savvy shoppers are adding such costs to their agendas.”

Lugless’ Altomare said the luggage shipping service business used to be thought of only as a luxury for well-to-do travelers, but he is finding more and more that everyday travelers are taking advantage of the service. He said Lugless has about a 15-20 percent marketshare of a $20-25 million business.

Since his appearance in May of 2013 on ‘Shark Tank,’ Altomare said Lugless picked up 500 percent more business in the very next month and sustained it – December was the company’s best month since it has been in business, with 500 customers and 1,200 bags shipped to 15 countries.

As with everything, however, there are pros and cons of using such a service.

PROS: Door-to-door service including pickup at your home or office and delivery to your hotel, less time at the airport on both ends, better on-time delivery and guaranteed arrival, some better pricing structure.

CONS: Generally, luggage shipping services are more expensive than checking second, third or fourth bags with the airline; must ship several days in advance for best pricing.

For instance, in a random TravelPulse check, it would cost $237 each way to ship two standard suitcases and a set of golf clubs from New York to Miami with Lugless. It would cost $120 each way to check the two bags and the clubs on a Delta Air Lines flight.

Is it worth the extra $100 or so? For some, yes.

“It completely eliminated a whole layer of stress and was one less thing to think about,” Maureen Kane Fyke told TravelPulse.com. Fyke is an executive with Fisher-Price who lives in Ontario and recently went on a family vacation and used a luggage shipping service.

“I’m usually on an airplane traveling by myself for business. So when you add a husband and young child, mom now has exponentially more things to be responsible for. It frees you up both physically and mentally so that you can instead enjoy the time with your family, enjoy the trip and don't have to worry about lugging stuff around.”

Altomare said there has been less focus on the affluent customer and that more and more families are using the service.

“The pricing really depends,” he said. “Some of our flat-rate pricing is cheaper than checking multiple bags. More importantly, it’s convenience. We tell our customers if you want to wait in line, lug the bag there, fill out the shipping tags, that’s great. Of you can go online and have it all done in five minutes and have it picked up.”

Ironically, virtually all the luggage shipping companies use delivery services such as FedEx, UPS and DHL, all three of which will also ship your bags. But luggage shipping services offer amenities such as guaranteed on-time delivery and delivery monitoring.

“We bypass airports," Altomare said. "We work with hotel concierges. We have guarantees. We think it’s a worthwhile service.”

Follow me on Twitter @RichTravelPulse.