New US Travel Law in Effect - Government Taxes & Fees must be included in Ticket Price

(Dive Travel Business News - December 20, 2011) -- U.S. Airline passengers frustrated by inconsistencies in how carriers advertise their fares will be getting some relief next month when a new federal rule kicks in requiring that all government taxes and fees be included in the stated price.

The new rule, part of the second phase of a package of federal airline passenger protections enacted this year, is set to take effect Jan. 24.  When the law comes into effect, customers searching online for the best fare will no longer have to click through to find footnotes or fine print that boosts the final price. Airlines will still be allowed to list optional charges separately, such as baggage, seat assignment and reservation change fees.

Additional measures slated to take effect next month include:

• A requirement that airlines disclose baggage fees at the time of booking. Airlines already must post baggage fees on their websites. But passengers now will automatically see the fees when they buy a ticket online.

• A requirement that travelers who make a reservation at least a week in advance be allowed to hold the reservation without payment, or to cancel it without penalty, for 24 hours. The rule "allows passengers shopping for a ticket to keep shopping for a while to see if [they] find something better. That's the logic behind it," said Department of Transportation spokesman Bill Mosley. Many airlines already allow a 24-hour hold.

• A ban on increasing the price of a ticket after it was purchased. "It's not extremely common, but it does happen from time to time," Mr. Mosley said. "Now airlines won't be able to do that."

• A requirement that passengers receive prompt notification about cancellations, diversions or delays of over 30 minutes. Notification must be provided within 30 minutes of the carrier becoming aware of the change.

These laws have been added to other traveler-friendly legislation that came out in August 2011:

One is a requirement that airlines refund baggage fees if bags are lost. That's on top of a long-standing requirement that carriers compensate passengers for reasonable expenses from lost, damaged or delayed luggage.

Other rules implemented in August require airlines to prominently disclose all optional fees on their websites, and to double the cash compensation for people involuntarily bumped from an oversold flight. Passengers are now entitled to four times the one-way ticket price, up to $1,300, for long delays in getting to their original destination. For short delays, customers get double the one-way ticket price, up to $650.

In addition, the department extended the three-hour limit on tarmac delays to include small airports, and adopted a four-hour limit for international flights. Exceptions are allowed for safety, security or air traffic control-related reasons.

Carriers also must ensure that passengers stuck on a plane are provided with food and water after two hours, as well as working lavatories and necessary medical treatment.

** This RSS Feed is brought to you by www.DiveTravelBusinessNews.com **