Pricing Travel Takes Creative Turn On Airlines, Cruise Lines

by Chris Owen on
When it comes to pricing travel, common complaints from air travelers concern fees charged for checked luggage and changes to tickets after buying. Cruise travelers are often surprised to find out that the advertised price they see is not the total price. Both want more options, flexibility and pricing that fits their needs. Several travel companies are making moves to give them just that.

American Airlines recently rolled out simple three-tier pricing aimed to take the unknown out of the equation, make comparing prices among airlines easier and perhaps adding value.

“This will eliminate the fear about what-ifs,” Rick Elieson, managing director of aa.com


Read more here: http://www.miamiherald.com/2012/12/12/3139557/american-airlines-rolls-out-new.html#storylink=cpy

said in a Miami Herald report. He said it will encourage customers to compare airlines by quality and reward those, “like American, that invest so much in its product.”

Now, American Airlines lowest and refundable fare brackets are divided into three options:

Read more here: http://www.miamiherald.com/2012/12/12/3139557/american-airlines-rolls-out-new.html#storylink=cpy

Choice fares are the same as how tickets are done now and will be the lowest fare. If someone wants to check a bag, they pay for it. This is the basic fare. This is no doubt the fare to compare with other airlines.

Choice Essential fares add $68 per round trip but include one checked bag, no change fees and early boarding.

Choice Plus fares add $88 per round trip, and include the Choice Essential benefits plus bonus miles for frequent fliers, standby privileges, a free drink and other perks.

Will other airlines follow American? Probably, as disclosure, transparency and a traveler-friendly system of pricing and booking seem to be the direction travel companies are headed.

This year, we saw a new U.S. Transportation Department (DOT) rule that requires airlines to include all taxes and fees in their advertised fares, among other consumer-friendly features. Cruise lines have no such rules and commonly do not include taxes and other fees in advertised pricing.

But in what we believe to be an unprecedented move, Princess Cruises began advertising the total price per person, including port charges, taxes and government fees, in advertising for their Season of Saving sale, running through December 21.

“These cruise fares include government fees and taxes so you can see what each voyage actually costs from the start,” says Princess Cruises on its website. “It makes planning your next vacation easier and saves the surprises for the pleasant ones you’ll discover on your cruise.”

Reaching further, Carnival Cruise Lines added new pricing options this month with what appears to be something for everyone.

Some time ago, Carnival came out with their Early Saver Fare, a restricted fare that was guaranteed to be the lowest price, no matter what. Throughout the life of a booking, if the price went down, the difference went to the buyer in one way or another via the Early Saver Fare’s price protection quality.

Like a discounted airline ticket, the Early Saver Fare came with some restrictions too. Topping the list was that the deposit was non-refundable and any changes incurred a $50 per person, per change administrative fee. It was the best price but not for everyone. A traveler with uncertain travel plans? This was not for them.

So Carnival increased the number of fare codes they offer from four to seven, adding additional fare codes that allow more flexibility, options and the ability to find a better fit for each individual traveler. As booking a cruise is more complicated than booking an airline ticket, more complicated are the Carnival fare codes as well.

Some Carnival fares are available far in advance of sailing. As time grows closer to sailing, other fares with different rules, aimed at those who are entering the booking arena are introduced then fall off as time marches on.

Winning at the new Carnival Cruise Lines fare code system seems to be a lot about timing and determination.

For example, those who need or prefer to book at the last minute might like Carnival’s new Instant Saver Fare, available 30 to 45 days prior to sailing.

Choosing this option, the cruise line requires that full payment is due at the time of booking and is 100% non refundable, among other restrictions. But someone booking further in advance will have a different selection of fare codes to choose from.

Available between five and three months prior to sailing, Carnival’s Super Saver Fare has a non-refundable deposit, no changes can be made for any reason, there is no price protection and the cruise line selects the passengers stateroom on the day of check-in at the pier.

Aimed at travelers who missed out on the Early Saver Fare because they waited too long to book, the Super Saver Fare is offered closer to sailing but with more restrictions.

Significantly new to booking procedures on some fares is that the cruise line (rather than the passenger) selects the cabin at the time of pier check-in. Now we’re into that “determination” comfort level and passengers who need or want to have their stateroom at a certain location on the ship will not like this qualifier. Those prone to suffering from motion discomfort commonly look for a stateroom location closer to the middle of the ship, where the laws of physics say the ride is smoother.

At the end of the day, those booking Carnival Cruise Lines may want to consider travel insurance more seriously in response new restrictions and use the services of a travel agent that works with this system daily to be sure they select the right pricing option.


[Photo Credit- Flickr user Simon_sees]

Airline Liquor Bottles To Be Replaced With Robot Bartender

by Chris Owen on

Feel like cracking the cap of a mini airline liquor bottle in flight? You better hurry; the skies could be filled with robot-like bartenders soon.

The Skytender Trolley dispenses hot and cold drink options without the cabin crew having to pour and open traditional drink containers for passengers. Flight attendants using the system are able to serve hot and cold drink items like juices, soft drinks, cocktails and hot drinks in less time.

Airlines and passengers will like the more efficient operation, enabling cabin crew to serve more people, faster. Skytender can produce 235 drinks out of 100 or more available flavors. Cabin crew can forget about making coffee or going back and forth to the aircraft galley for water refills as Skytender holds 30 liters of hot and cold water too.

In the works for several years, Skytender Trolley went along on its first ever commercial flight on German airline WDL Aviation flying from Cologne to Palma Majorca with in-flight caterer LSG Sky Chefs along for the ride.

“Our first ever test flight was a complete success, the system operated as expected and we have generated even more interest in our innovative product,” said Oliver Kloth of Skymax in a Travel Daily News article, adding “the passengers were extremely pleased with the beverage options and most importantly the quality and speed of service.”

Want to see the Skytender Trolley in action? Check this video:



[Photo Credit: Flickr user Eph Zero]

Fees And Penalties Waived By Travel Companies: Nice Or Strategic Move?

by Chris Owen on

Frequent travelers know that fees and penalties happen when we change plans. Booked elements of a travel plan, especially when discounted, often carry heavy charges to prevent changes. But when major disruptive events happen – situations beyond our control that force plans to be modified – travel companies often waive those fees. It seems like a logical, good business move to make. But sometimes they need a little encouragement to do so.

Weather events, like a hurricane, a massive winter snowstorm or even disasters far away like an earthquake in Japan can throw off air schedules, empty or fill hotel rooms and make normal operations nearly impossible. When that happens, airlines, hotels, car rental companies, cruise lines and more adjust quickly to do the best job they can under the circumstances. Commonly waiving cancellation or change fees for these situations out of our control, it’s a show of good will by travel service providers. They don’t have to do that.

But it’s also a strategic move since the rescheduling is going to be done anyway, putting a severe strain on reservations systems and personnel. It’s kind of like the boss that is mad when someone calls in for work vs. the understanding employer who wishes them well and hopes they get better soon. Either way, the worker is not coming in today but the understanding employer gains good will with his workers. The mad boss? Not so much.As Hurricane Sandy caused aircraft to be grounded or moved out of harms way, United spokesman Rahsaan Johnson told USA Today, “We will likely suspend operations scheduled for tonight and tomorrow at several airports in the region. Conditions are likely to keep us from operating with an acceptable margin of safety.” Delta went on to suspend change and cancellation fees, as did most major airlines, asking passengers to consider departing earlier, postponing or re-routing their travel. At the time of Hurricane Sandy, it made sense.

After the storm passed and normal operations resumed, back came the fees and charges. But on the ground, the lives of those affected where far from back to normal. Homes left standing were still without power in many areas, forcing residents to live in hotels, scramble to find a rental car and change plans well into the future. For a while, it looked like airlines were going to hit passengers with fees again until Senator Charles Schumer (D-N.Y.) stepped in to lobby airlines on their behalf. As a result, airlines reevaluated their policies and made the right move.

“JetBlue and Delta have stepped up to the plate for those teachers and families with students whose travel plans have been ruined by Superstorm Sandy – now other airlines and cruise lines should follow suit ASAP,” said Schumer on his website. “Having to cancel a long planned vacation because of the storm is bad, but being forced to shell out hundreds or thousands in cancellation or change fees is worse.”

Whether it is nice to do in order to earn or keep our good will, or a strategic move that should make resuming normal operations more efficient, we’re always happy when fees we don’t think are justified are removed, regardless or what (or who) caused them to happen in the first place.

Want to know more about how to avoid fees? See this video that tells us fees are big business for airlines, between 3 – 4% of their income:


[Photo Credit: Flickr user swanksalot]

Budget Justice: How To Survive On Spirit Airlines

by Robin Whitney on

Like many others, I operate on a shoestring budget, more often than not, out of stubbornness. I prefer to call it budget justice, a principle of savings that guides people like me to needlessly circle the block for a free parking space only to miss the event that got me into my car in the first place, or, worse yet, to time and time again book flights on Spirit Airlines, the ultra low-cost carrier known for luring in customers with absurdly low air fare and then assaulting them with excessive fees, uncomfortable cabins and culturally offensive advertising.

When faced with the choice of true comfort or the perceived value from Spirit, I will always choose Spirit. Fortunately, my experience has prepared me with some survival techniques for the ultimate budget justice. Here’s my advice.

Book without bait

Spirit is almost always running a promotion to get you to the site in hopes that as you book you’ll concede to one of their many aggressive offers before checkout. When enticed with low fares, it always helps to first double check for promo codes on Retail Me Not. If I missed a promo by a few days, I zoom over to Orbitz, where the deal might still be alive; there, I’ll have a higher chance of finding the best fare.

While booking, read each page carefully, and just say no! Decline to choose your seat, decline to check your bag, decline to carry on, decline to rent a car, a hotel, just about everything. You’ll be glad you didn’t take the bait to extend your relationship with Spirit any further than you had to.Perfect the personal item
A shoestring traveler already knows that to avoid fees, checked luggage is off limits. But Spirit often surprises passengers by charging for carry-on bags as well. A non-member can pay online in advance $35 each way for their carry-on bag, or get gouged at the airport kiosk and pay $50. Worse yet, if you bypass pre-paying for your carry-on luggage, you can be stopped at the boarding gate and charged a $100 fee. Suddenly, that $99 round-trip flight is starting to look more like a $300 nightmare.

To fight for your budget justice, perfect the personal item – a purse, briefcase or backpack that you can carry on and stow under the seat for free. A backpack meeting the required dimensions of 16 x 14 x 12 inches is much larger than you think. I often load up my personal item with a MacBook, and four days of clothes. I’ve even traveled with friends who have gone as far as to wear a comical amount of layers in order to skirt the charges.

Side-step the seat selection
When flying budget airlines, sometimes the only comfort you can count on is traveling with a partner, but let’s be realistic – just how memorable is your flight together? I’d wager about as memorable as sitting in a doctor’s waiting room. You’ll get where you’re going regardless of where you are seated, and the worst-case scenario is you are separated from your party for a few terrible hours.
Still, there are ways to increase your chances of sitting together without paying, and it’s based on a system of trusting that everyone else is just as stubborn as you are.

When Spirit asks you to choose your seat ahead of time ($12-$199 each way), simply decline. Each time I purchased two seats on the same transaction, I was able to sit with my partner for free. I simply checked in online early, selected that I would like a random seating arrangement, and the computer put us together.

Recently, when traveling with a group of friends on Spirit, we had all purchased tickets separately and were still able to sit together without paying the price (though we accrued some small fees). Instead of checking in online, we arrived early at the check-in counter ($1 per customer, $5 per boarding pass printout). Even though we had separate confirmation numbers, we approached the counter together and the attendant kindly seated us together as one party. Granted, you may be at the mercy of an airline employee’s mood; it’s still worth a shot.

Fight for free “water”

On a recent flight I sat near an elderly veteran. When the Spirit flight attendant passed by to collect credit cards for pricey drink and snack orders, the gentleman kindly asked, “Do you have free ice water?” With a big smile simulating the pleasant demeanor reserved for a 4 year old, the attendant responded, “I can give you ice. That turns into water.” The veteran accepted his cups of free ice and waited patiently for them to melt. I couldn’t help but admire him for many reasons, not excluding his tenacity for a deal!

[Photo credit: Flickr user theskinnyailurophile]

Need More Legroom? Buy Some, Says Airline

by Chris Owen on

Legroom in coach continues to be a big issue with air travelers who would love to stretch out like those lucky people in first class. Side-to-side room is also of interest as those flying on airlines without assigned seating hope no one sits next to them. Now, one airline has a way to make it all better.

“Main Cabin Extra makes travel more comfortable by providing you with 4 to 6 inches of additional legroom and Group 1 boarding,” said an email I received from American Airlines encouraging me to pay a bit more for coach seats. That’s an extra fee they don’t have to talk me into either. On American Airlines 767-300, 757 and 777-300ER aircraft I have paid as little as $9 for the pleasure.

Added on up until the airport check-in cut-off time, prices range between $8 and $118 per flight and can be purchased when checking in for a flight through airport self-service machines, AA Reservations, and through select travel agencies.

Different airlines call it by a different name but it all adds up the same: more space.
Ask me to pay $20 for checking a bag (or up to $150 for an overweight bag), $50-$150 per ticket to make a change in plans or any one of a score of other fees and I simply won’t do it. Tell me I can stretch out for a few dollars and I am all for it.

“Airlines aren’t chasing volume anymore, they’re chasing the bottom line,” explains Mike Boyd, chairman of Boyd Group International, an Aviation consulting firm in Evergreen, Colorado, in a Fox News report.

Indeed, holiday airfare shoppers already know that the number of flights is down as airlines choose to fly full planes that generate more profit. Not all that long ago, three classes of seating were available and clearly defined. At the top was first class, followed by business class, then economy coach seating. Today, premium economy is coming more into focus as one of the best travel values available.

“Part of this is this premium economy thing. Business class has become the battleground,” added Boyd. “That went up and up in terms of perks but has become too expensive, so now we’ve gone back to introducing another class – we’ve gone full circle. And internationally, premium economy is what business class was 20 years ago.”

Personally, it surprises me that more travelers don’t choose this inexpensive travel option. There are a limited number of exit row or expanded economy seats available but I almost always find one for a small fee when checking in for a flight.

Another steal, perhaps the gold ring of travel values, is same-day upgrades to first class on the day of departure. Domestic flights are commonly $50 more; international flight upgrades to first class (complete with bragging rights that define one as a savvy air buyer) can be a couple hundred.


[Photo credit- Flickr user Fly For Fun]