Fees passengers hate actually make sense

by Tom Johansmeyer on

I honestly don’t have much of a problem with all the extra fees being tacked on by airlines. They have an obligation to their shareholders to deliver results: it’s a fact of life. And, realistically, they don’t do us any good if they can’t afford to put planes in the air. But, I suspect I’m in the minority on this one. A recent online poll by Airfarewatchdog.com sought to learn which fee passengers hate most and found that 52 percent abhor having to pay to pick a seat. Only 14 percent had a problem paying for snacks. A mere 3 percent (my kindred spirits, I guess) said they were happy to pay for extra services.

George Hobica, Airfarewatchdog.com‘s president, observes that passengers are more tolerant of fees that come with an added expense to the airline. If you want a meal, someone has to pay for it. Sure, you’re going to pay more than the airline does – as you should – but there’s an understanding that the airline is picking up part of the burden. With seat assignments, he believes, the fact that there is no incremental cost is what irks passengers.

I see Hobica’s point, but there’s an opportunity cost for the airlines that isn’t readily seen by the average passenger. If there is a place for a fee that the airline doesn’t use, it’s potential income that can never be recaptured. Sure, there’s no additional cost to be covered, but there is the reality that the airlines aren’t monetizing something that could ease the pressure on their financial statements.

There’s a good reason for every additional fee you’re seeing: airlines don’t have a choice. Rather than push up the prices, this a la carte approach allows passengers to decide what’s important to them. Why pay for a meal you won’t eat … or for a “better” seat that won’t make a difference to you?

Expedia drops telephone booking fees

by Scott Carmichael on

There is a bit of a war going on between the various large online travel sites. They are battling each other to see who can provide the best service, with the lowest fees. Of course, this war really only has one winner – consumers.

This morning, Expedia announced the removal of all telephone booking fees for trips booked through their service. This may not sound like a very important change, but when you consider that the airlines charge as much as $25 per person, per telephone booking, you’ll quickly realize that being able to book that same ticket through Expedia without any fees could come in quite handy.

The company eliminated online air booking fees and change fees and cancel fees on all hotel and car rental reservations in May 2009. Cruise change and cancel fees were also eliminated in May 2009 and cruise booking fees were eliminated in October 2009.

It is an odd world when big travel firms like Expedia are able to provide a better service than the airlines themselves, but as I said – we consumers are the real winners here.

Being able to book a flight over the phone is perfect for people who hate making online reservations, or if you need an last minute flight reservation and don’t want to deal with the hassle of finding a computer with Internet access.

50% of air travelers will fly with the flu to avoid a fee

by Katie Hammel on

I’m a one of the those people who always seems to get sick after a long plane ride. A few days post-trip, I suddenly get a runny nose, sore throat and all the other telltale signs of a cold, most likely contracted from a sick passenger. Usually it’s minor, and I’m out of commission for only a few days.

I guess I’ve just been lucky that it hasn’t been the flu, because, according to a recent TripAdvisor survey, over 50% of travelers would choose flying with the flu over paying a fee to change their flight. As if we needed more reason to get a flu shot before we travel this season, now we know that someone with the flu may end up on our flight, just to avoid the fee.

Out of 2,327 people, 51% said they would fly while sick with the flu rather than pay the $150-$200 fee (plus any change in price) imposed by most airlines in order to change their flights to a later date. This is obviously, alarming news, but I can see why it is the case that people would rather cough up some germs on their fellow passengers than cough up the extra cash to change the tickets. Especially because costs for the new dates will often be higher, meaning you may end up paying more like $300-$400 per ticket for the change.

In the case of inescapable commitments, I can understand why someone would not change the ticket. But for a leisure trip, I would consider it. Of course, I don’t want to get others sick, but from a purely selfish standpoint, I don’t want to spend my time in the air shaking and shivering with the flu, or to spend my entire vacation laid up in bed. But then again…if I felt well enough to get on the plane despite having the flu, I would definitely do it rather than incur the extra charges and have to change all my travel plans.

On his blog, Christopher Elliot offers a solution – airlines need to lower or waive the change fees during flu season. We need to stop financially penalizing those who get sick and allow them to change their flights easily, or they will continue to fly and risk spreading the flu to other passengers.

The $10 airline peak “surcharge” is here to stay

by Scott Carmichael on

Last week, we reported on a new money making scheme concocted by the airlines. In a nutshell, they are raising fares by $10 on the busiest days of the year. The scheme started as a fee from one airline on three days around Thanksgiving and Christmas. Then other airlines followed, turning it into an industry wide scam scheme.

Well, apparently the bean counters at the various airlines loved it – because they have expanded it to a whole bunch of other dates.

Farecompare.com has the dates listed as:

  • November 29 – November 30, 2009
  • December 19, 2009
  • December 26 – December 27, 2009
  • January 2 – January 3, 2010
  • March 14, 2010
  • March 20 – March 21, 2010
  • March 28, 2010
  • April 11, 2010
  • May 28, 2010

That’s right – when you need the airlines the most, they’ll make the most money off you. Some airlines were smart, and hid the $10 surcharge in their fares (American Airlines is a good example of this), others simply tack it on top of the other fees and surcharges added to your ticket.When the first wave of “peak surcharges” was added, you could opt for a different airline, but as is often the case in the airline world, most airlines have copied American Airlines, so it’s going to be one of those times when the airlines win. In other words – get used to these new fee generating methods.

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(Via Walletpop)

United to try checked luggage buffet

by Tom Johansmeyer on

Do you always travel with two bags to check? Some people don’t travel light, and they know that, in this new world of airline fees, they’re going to have to stomach an extra charge as a result. Under a new United Airlines plan, you’ll be able to “subscribe” to extra bag privileges. Instead of paying $20 for the first bag checked and $30 for the next one, you can shell out $249, buffet-style, and enjoy a full year of checking two bags.

This works for both domestic and international flights. The program pays for itself after a mere five trips. So, if you’re a road warrior or just like your vacation time, this could be a smart program for you.

But, don’t get too comfy: United is calling this an “introductory price.” If the program works well, expect your breakeven point to creep a bit higher next year.