It may seem like a small change to most people, but not supplying patrons with peanuts saves thousands of dollars per year. Not offering the drink service other than water cuts costs as well. Most everyone is trying to find places to shave off a little more profit. Fortunately for consumers, Virgin is not one of them.
I believe airlines are benefiting from their nickel and dime strategies. Nickel and dime strategies refer to all the extra fees airlines charge such as fees for checking in luggage or printing out boarding passes. Revenue from these Nickel and Dime strategies range in the millions and can be the difference between the airline's profit or loss for the year.
Airlines definitely benefit from extra fees that they charge people during the flight, such as a fee for borrowing headphones, blankets, pillows, and the like. That being said, their reputations can be hurt by the way they are charging for things that really should be included in the ticket price. Besides, with some of these, people can bring on their own items, so it doesn't really make much sense for them to charge extra.
I think that colleges definitely benefit from implementing different tactics to get more money from their customers. The prices of costs to the airlines have definitely been a reason for it. That is why airlines are doing all they can to charge more for different services in the airline companies.
In this day and age, I believe that airlines are not benefitting from nickel and dime policies. Although airline travel is still a huge industry and fairly common, some companies have lost money due to aforementioned strategies. For some consumers, the tickets are expensive enough, but what about situations in which basic amenities are being charged for? As a result, people may turn towards alternative methods of travel. This can potentially do more harm to the companies than help, especially as word of such strategies not only result in a negative reputation for the company, but a loss in profit as well.