We’ve all seen that “great deal” airline ad, only to discover that with surcharges, taxes and fees, the great deal is not-so-great. Starting today, when airline consumers see an advertised price of $500 that will be the price they pay. (Of course, there will still be some additional irritating “optional” fees like baggage charges, seat reservations, etc.)
Here is a synopsis of new rule changes that came into effect in phases this Tuesday and today affecting airfares and airline fees.
Full-fare advertising
Starting today, all advertised airline prices will have to be the full cost of travel. Airlines are squirming, claiming that their business will suffer if they are required to advertise the full cost of travel and suggesting that consumers will be scared away when they see a jump in prices when this rule comes into effect. Consumers may see what seems to be an increase in prices, but it will only be transparent honesty that is to blame.
Many airlines and some analysts have argued that making airlines play by a different set of rules than other industries is, well, un-American. However, DOT has found itself all but forced to act because of the astounding discrepancies in the advertised price and the real price of airline travel.
On some domestic routes the difference will be minimal. On international routes the price increases may seem astronomical.
The price on Orbitz (Jan. 23rd) for a flight from Boston to London Heathrow departing on April 17th and returning April 24th is advertised with a $130 round-trip airfare! After airlines, airports and governments add on another $622 in taxes and fees, the total cost is $752.
Orbitz screen detail, January 23, 2012, $130 airfare + $622 taxes and fees
Priceline.com BOS-LHR display on Jan. 26, 2012 — much more honest and clear
Is it honest advertising to advertise a flight from Boston to London for $130 when the lowest cost to travel would be $752? I think everyone would agree that it is not.
Unfortunately, the slew of “optional fees,” especially such as baggage fees and seat reservation fees that can add more than a hundred dollars to the cost are still concealed from airline shoppers unless they do some digging. The airlines are not making comparison shopping easy when it comes to examining the full cost of travel across airlines, including optional fees. And, yes, consumer groups are encouraging DOT to mandate that airlines disclose, at least, baggage and reservation fee information before consumers have to press the “buy” button.
Exact baggage charges
• Passenger-specific baggage fees are now required on flight itineraries. Airlines must tell the passenger exactly what their baggage fee will be based on their frequent flier status, class of service, the credit card with which they purchased the airfare and take into account whether the passenger is traveling with others, on the same ticket record, who have benefits or dispensation that they can share.
Though airlines still refuse to disclose baggage fees that can be compared across airlines during the buying process, this measure will allow passengers to know what they will have to pay, rather than find themselves surprised at the airport.
Baggage fees across code-share and alliance flights
• The marketing carrier must provide passengers a common baggage charge that will apply throughout their trip when travel involves code-share and alliance partners. For instance, a ticket purchased on Delta Airlines may not involved any flights on Delta, but the Delta baggage rules will apply. If the first flight with a Delta flight number is on an Air France to Paris, the second is on Alitalia from Paris to Rome and the return flight from Rome via Amsterdam to the U.S. is on KLM, the Delta baggage rules will apply.
As confusing as domestic baggage fees have become, international baggage fees on a Delta-flight-number ticket used to be indecipherable. Now, consumers may get baggage fees that are comprehensible.
More new rules with important protections
Besides these new rules that come into effect this week regarding pricing, airlines must allow a 24-hour grace period to change airline tickets or cancel them after purchase. They will be forbidden from increasing prices after airfare purchase. And, airlines will be required to inform passengers of delays of 30 minutes or more, cancellations and diversions within 30 minutes of the carrier becoming aware of the change.
Finally, airline consumers are getting some respect.
A version of this story was published on CNN.com on January 25, 2012
