Air Fees Up Up and Away!

Skies the limit for Airline Fees
Wednesday, March 2, 2011

(Dive Travel Business - March 2, 2011) --  The airlines new motto might be “let no fee go unnoticed. “ The latest: Continental Airlines offers an option to hold a reservation and lock-in the ticket price for 72 hours or seven days. This sounds reasonable except that there's a fee attached, beginning at US$5 for a 72-hour hold and $9 for a seven-day hold. And it's not just for domestic flights:  Overseas routes and International carriers are also starting to adopt similar fees.

The fees can vary according to routes and other factors, and can quickly add up because they are applicable for each traveler. Ever-growing airline fees continue to come under attack on many fronts, particularly since they are often not clear for consumers.  The International Air Transport Association, which represents 230 airlines in more than 115 countries, says baggage rules "are becoming increasingly complex and confusing,” and airlines "must improve transparency so travelers know what to expect."

Overall, the 20 largest US airlines collected $906.4 million in baggage-related revenue in the third quarter of last year, government data shows. New international fees, a rebound in air travel and limited overhead space were factors in the revenues. The most lucrative fees have been for checking baggage — $590.4 million in the third quarter — and for changing reservations. International fees adopted this year, a rebound in air travel and growing passenger frustration over limited overhead space in airplane cabins all contributed to the skyrocketing fee income, observers said. 

Continental is offering a new service - with a fee.  Its new option, FareLock, is for those customers who need extra time to plan their travel before purchasing a ticket.  FareLock gives customers additional flexibility to plan their travels and avoid the risk of price increases or sold-out flights, says the airline. The carrier says it will continue to offer its 24-hour flexible booking policy that allows reservation changes and cancelations with full refund without a fee within 24 hours of booking. For customers choosing FareLock, the 24-hour flexible booking policy remains in effect upon ticketing, although the FareLock fee is non-refundable.

Recently, the U.S. Department of Transportation fined American Airlines for not disclosing to passengers who gave up their seats on oversold flights that they would have to pay as much as $30 to redeem a voucher. The carrier issues about 250 vouchers daily. The DOT said it is the first time an airline has been fined for not disclosing such fees.

How crazy can it get?  Well U.K.'s RyanAir is threatening toilet fees. RyanAir owner, Michael O’Leary, says he’s even thought about the price: one euro or one pound sterling, depending on the route.


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