airline fees Archives | Nicholas Kralev

United raises ticket change fees by $50, others follow

United Airlines has quietly increased the fees it charges for voluntary changes on tickets for travel within North America, and between North and Central America by $50 to $200. The change took effect on April 18, according to an internal company advisory sent to employees.

The decision makes United the airline with the highest change fees in the affected markets. Other major legacy U.S. carriers, such as American, Delta and US Airways, still charge $150, and smaller airlines like Frontier and Virgin America charge $100. Alaska Airlines’ change fees are $75 online and $100 by phone. Those fees, which Southwest Airlines proudly spares its customers, are in addition to any fare differences. Changing the most expensive — or full-fare — tickets doesn’t incur penalties on any airline.

The United fee increase, coming just a week after the carrier was named worst in customer service in a national ranking tracking airline performance, is certain to anger United fliers even further. Industry watchers will be monitoring very closely whether other airlines follow suit — that has been the trend historically, though customer backlash and social media outrage have forced carriers, including United, to reverse controversial decisions in recent years…

Is the airline market really not working?

The travel-agency community has been fuming for years over its inability to sell airline products that used to be included in ticket prices but no longer are, and with good reason. A travel agent’s value is diminished by such a significant limitation. The airlines, in turn, refuse to make those products available through distribution channels they don’t control because of high costs. So what’s the solution?

According to the American Society of Travel Agents, the answer is government regulation. “The airline marketplace is simply not working,” the organization’s senior vice president, Paul Ruden, wrote today on its website. Even though the Department of Transportation (DOT) is considering mandatory disclosure of extra fees for seat assignments, luggage, premium economy seats, etc., it’s unlikely it will force the airlines to sell those products through the currently dominant third-party distribution channels.

Let’s look at the problem through each player’s prism. If you use a travel agency — traditional or online — you expect full service. You don’t want to be told that your agent can only issue a ticket, but for anything else you need to buy, you have to go to the airline’s website. Then why would you want to pay an agent to book your travel? The other option is for the agent to go on the airline website and make those additional purchases, but that would take more time, and the agency would make no commission. Naturally, agents prefer to accomplish all their transactions in one place, and to get paid for what they sell — that place is a third-party Global Distribution System (GDS)…

9/23 is ‘mad as hell day’ over airline fees

Three major travel-industry organizations begin a campaign on Tuesday to compel the airlines to disclose all fees not included in the ticket price at the same time as the actual fare — and before the ticket is issued. But will such a campaign succeed?

The groups — the Business Travel Coalition (BTC), the American Society of Travel Agents and the Consumer Travel Alliance — want consumers to sign a petition to Transportation Secretary Ray LaHood. The text urges him “to require airlines to fully disclose their fees, whether airfares are purchased on an airline’s website or through an online or brick-and-mortar travel agency.” The organizations plan to deliver the petition to LaHood on Sept. 23, which they have designated as “Mad As Hell Day”..