"Airlines getting billions from new fees." No kidding.

Ember

<font color=blue>I've also crazy glued myself to m
Joined
Aug 1, 2005
Messages
3,468
I love it when the news reports on the blindingly obvious! The various fees while flying irritate me to no end, and I'm glad they're talking about putting rules in place to fully disclose all fees at the time of booking, but is anyone really surprised that fees = lots of money for airlines = the airlines like things to be confusing. :teacher:

In Canada we haven't been hit quite as hard with the fees as you guys in the US, but I'm sure our time is limited... I read recently that some US airlines were charging fees for checking in, and for early boarding if you have children. :headache:

From cnn.com:

Washington (CNN) -- U.S. airlines make billions of dollars in fees for check-on luggage, refreshments and other services formerly included in ticket prices, but consumers have a hard time figuring out how much they'll pay in total to fly, a congressional committee heard Wednesday.

The House subcommittee on aviation held the sometimes contentious hearing to consider a U.S. Government Accountability Office report on the fees airlines have charged in recent years on unbundled services that once were considered part of the ticket price.

"Fees for optional services ... are not fully disclosed to passengers at the time of booking," said a summary of the report, which noted that airlines reported revenue of $7.9 billion from baggage fees and reservation change and cancellation fees in calendar years 2008 and 2009.

Witnesses from GAO, the Department of Transportation and associations for air travel and travel agents all urged the government to require uniform pricing information from airlines to help consumers make easy comparisons.

"The government must step in," said Kyle Moore of Sabre Travel Industry Group, appearing on behalf of major travel-agent groups. "We don't believe airlines will do this on their own."

Kevin Mitchell, chairman of the Business Travel Coalition, said airlines realize more profits from "complexity and confusion" that can cause travelers to pay significantly more for a flight than they thought when they purchased the ticket.

"Had you known that before, you might have made different choices," Mitchell said of consumers.

...

"Fees are a business decision best made by each airline," Ridley said, adding that the federal government should make sure all fees are disclosed to consumers.

Robert Rivkin, the Department of Transportation's general counsel, said government officials are looking at ways to tighten regulations on how airlines inform consumers of such fees.

"We believe that the proliferation of these fees and the manner in which they are presented to the traveling public can be confusing and in some cases misleading," Rivkin said. Published fares used by consumers to choose flights don't "clearly represent the cost of travel when these services are added."

Changes under consideration would require full disclosure of "mandatory" costs, including taxes, fees and other charges paid by all travelers, as well as full disclosure of optional fees for checked bags, seat selection, refreshments, blankets and other services, Rivkin said. In addition, the department might require reimbursement of baggage fees when bags are not delivered on time, he said.

Another witness, Gerald Dillingham of GAO, noted that airlines already have administrative systems in place to provide the pricing information consumers need.

"It would not be free, but it would not be restrictive" for the airlines, Dillingham said.

In a warning to the industry, panel members asked about the possibility of extending the airline excise tax of 7.5 percent charged on airline tickets to the unbundled fees, which currently escape the tax. The tax revenue funds the Federal Aviation Administration.

Baldanza of Spirit Airlines opposed the idea, saying the additional tax could harm industry growth. Ridley of Southwest offered no view on the specific tax in question but said the airline industry already is overtaxed.​
 
At least they are still flying. You are either going to pay more in ticket prices or in fees, which you can chose to accept or not. If you frequent one airline and build enough miles, baggage check fees, etc 'go away". Planes can't fly on "air" and flight crews need to be paid too. Insolvency in the air line industry leads to bankruptcy, lost jobs, lost airlines and loss of competition. SWA is still not charging a bag check fee so that carrier is always an option.
 
OP--
You are soon going to be flooded with folks who will say we should be thrilled to be charged to go to the bathroom just for the privilege of doing so on an airplane. So get ready!

IMO- I'm thrilled the government is finally at least talking about the issue. I think this industry is completely out of control and the nickel and dime approach is insulting to the customer and makes the whole experience more frustrating.

The PP is correct-- SWA doesn't do any of this. Maybe the rest of the industry should be paying more attention to the SW business model. They also pay their pilots a respectable salary--- but aren't overburdened by pilot unions sucking them dry.
 
I am all for a company making a profit because that keeps workers employed. Some of the flights we used to take from LA non stop to Jamaica are now gone, So is a morning flight from Miami to Turks and Caicos which after a red eye means a 6 plus hour layover for us. If I want no fees I can fly southwest but it will take 2 stops to get me from the west coast to the east coast in most cases. Gone is America West that had great flight times and prices from here to New Orleans. All my favoirite routes have doubled in price over the past couple of years without the fees. That is if I can get those same flights. We used to travel quite often and at a good deal. We can get a non stop to hawaii but we prefer the carribbean and that has become almost undoable for us. We can still fly jetblue non stop from here to FL or NY but at twice the cost. Gone are the good old days for us. If you are lucky to live in a market that still has good prices and times good for you, but the fees are the least of my worries at this point.
 

I am all for a company making a profit because that keeps workers employed.
So hopefully, airline revenues will eventually rise high enough that that will actually be the case.
 
Fees: it's how banks make their billions in profit.

I'm glad the airlines are now going to have to disclose at pricing the total amount which includes taxes and baggage charges.
 
I fly stupid amounts and will nearly always fly delta. They were usually the cheapest and once I reached the some members status I got free upgrades and free bag check ins. Sure I much rather fly jet blue or southwest but those aren't options.
 
I'm a person who doesn't mind the fees because so many were going under and hurting. I personally believe that you pay the fees to fly or you don't. Flying is a luxury people. Keep the government out of it!
 
While airlines certainly need to return to dependable solvency, I agree with this quote:
"We believe that the proliferation of these fees and the manner in which they are presented to the traveling public can be confusing and in some cases misleading," Rivkin said. Published fares used by consumers to choose flights don't "clearly represent the cost of travel when these services are added."

Unless you have a schedule in front of you of all of the fees that each airline will want to charge you, it's impossible to look at Expedia and know which is actually the cheapest flight. I agree that the current practices are deceptive.
 
I think it is fair for the airlines to be required to have a place on their website where all their fees are listed.
 
I don't mind that my costs have gone up because of the fees. My actual fare to Orlando is still around the same price I was paying 10 years ago, which doesn't make sense to me. What I don't understand is why they didn't just raise fares a little every year :confused3. If fares rose and it wasn't an extra "fee" to have baggage, etc., would people even have noticed enough to complain?
 
What I don't understand is why they didn't just raise fares a little every year :confused3. If fares rose and it wasn't an extra "fee" to have baggage, etc., would people even have noticed enough to complain?
Yes, the airlines know that people effectively treat air travel like a commodity. If they see two flights at approximately the same time on two different airlines and one is $10 cheaper, then most people will reflexively pick the "cheaper" ticket. This is one of the reasons why the unilateral raising of ticket prices by an airline almost always fails. They raise the price, and customers will flee to other airlines unless they join in and raise their prices too. Usually, the other airlines hold pat and enjoy the new stream of customers.... and the "burned" airline when drops their prices back down. rinse, repeat.

The "extra fee" scheme is a way to get around this conundrum. They can effectively raise prices without appearing to do so when people to marking their purchase decisions.
 
In addition to hte not including these fees as part of the ticket they are also not paying the Federal Government the transportation taxes on ticket prices. If they include this as a fare, it will then be subject to the transortation taxes.

And I had a recent trip that I had to cut short by a day, had been on a "free" ticket using airline miles, and had to pay a $150 fee to change my flight.
 
I don't mind that my costs have gone up because of the fees. My actual fare to Orlando is still around the same price I was paying 10 years ago, which doesn't make sense to me. What I don't understand is why they didn't just raise fares a little every year :confused3. If fares rose and it wasn't an extra "fee" to have baggage, etc., would people even have noticed enough to complain?

The air fare that we pay to go to Orlando now is almost half the price when we started going 30 years ago.
 
The PP is correct-- SWA doesn't do any of this. Maybe the rest of the industry should be paying more attention to the SW business model. They also pay their pilots a respectable salary--- but aren't overburdened by pilot unions sucking them dry.[/QUOTE]

Yay for SW!!! We fly SW everywhere we can. Best service, awesome prices. They are actually the most unionized of all carriers though at 87%. They use an amazing business model which makes them the most money and keeps them the only carrier on fortune's 10 admirable companies list.
 
Well, I have been in the travel industry for 17 years now and I don't understand the fees.

The airlines need to be regulated, we have to follow their rules ( I am a Travel Agent ) but they are the first to blame US when they have a new fee and we had no idea about it.

They can add or change at any time and we have no say whatsoever even if our clients are already booked.

When they first had started charging the fees for luggage it was because the price if fuel was very high, well that is no longer the case anymore. Its just another excuse for them to make more money. And screw the little guy. Excuse my french but it is ridiculous.

The flights that have been cut down is also crazy BUT traveling is a luxury and I do understand that. It is also about supply and demand but these prices right now are crazy. Someone needs to step in and get this regulated.
 
If they want to charge fees, go right ahead, but they should not be allowed to be sneaky about it. The customers should be told up front about all the fees before they buy the ticket.
 
If they want to charge fees, go right ahead, but they should not be allowed to be sneaky about it. The customers should be told up front about all the fees before they buy the ticket.


I totally agree! And I don't think that this is asking too much.
 


Disney Vacation Planning. Free. Done for You.
Our Authorized Disney Vacation Planners are here to provide personalized, expert advice, answer every question, and uncover the best discounts. Let Dreams Unlimited Travel take care of all the details, so you can sit back, relax, and enjoy a stress-free vacation.
Start Your Disney Vacation
Disney EarMarked Producer






DIS Facebook DIS youtube DIS Instagram DIS Pinterest DIS Tiktok DIS Twitter

Add as a preferred source on Google

Back
Top Bottom