News articles in Air, Fares & Fees

Heat From the Seat: Study Says Airlines are Capping their Revenue Models by Forgetting About the Customer

(Dive Travel Business News - March 29, 2011) -- "Heat from the Middle Seat: The U.S. Consumer Perspective in Air Travel" a new study released by travel industry research firm PhoCusWright, reveals that less than half of U.S. air travelers feel positive about their airline experiences. While traveler attitudes toward airlines are lukewarm overall, consumers report feeling worse about their airline experiences versus a few years ago, PhoCusWright says. Consumer attitudes towards their air travel experiences have soured over the same period that airlines have added baggage fees and other new charges.

PhoCusWright found that 38% percent of leisure-only U.S. travelers feel slightly or substantially worse about their airline experiences compared to a few years ago, while just 13% feel slightly or substantially better. read more »

AMEX Study Suggests Airfares Poised for All Time High

American Express Study Suggests Airfares Poised for All Time High

(Dive Travel Business News - March 27, 2011) -- Airfare increased 7% in 2010, leaving it 6% below its record high in 2008, according to the American Express Business Travel Business Travel Monitor study released March 15, 2011. Fares have been on the rise this year, suggesting they will surpass their previous record soon.

"With oil prices rising, airlines are looking to cut their capacity-growth plans to combat higher fuel costs," said Christa Manning of Global Advisory Services, American Express' research division. "Increases in airfares are likely to remain on an upward trend in 2011. So far this year, we are seeing this trend hold true with domestic airfare rates in January up 8% compared to January 2010." read more »

Air Fees Up Up and Away!

(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." read more »

Tips for Coping with Record High Air Fares and packed planes

(Dive Travel Business News - Nov 10, 2011) -- Pundits are warning travelers that air travel will not only be more costly this holiday season, it will also be more crowded. The national average airfare for Thanksgiving travel is US$383, according to Priceline.com. Only once in the past eight years have fares been higher, in 2007, when it was $385. The average airfare for Christmas is projected at $444. It was only $361 seven years ago. Orbitz is reporting that some major routes are up to 30 percent higher this holiday season compared to a year ago.

News agency Reuters reports that higher prices are a reflection of lower supply. The airlines have reduced capacity this past year by cutting routes, pulling back scheduled service and using smaller planes. The Air Transport Association reports that airlines are expected to be 90 percent full. But according to several surveys, people are starting to travel again with Thanksgiving travel estimated to be an increase of 3.5% over last year.

Busiest flying days during the Christmas Season are projected to be Dec. 23 and Dec. 26. Orbitz reports that the most expensive day to fly will be Dec. 26. read more »

WestJet Launches New Seasonal Service to Cuba

(Dive Travel Business News - November 8, 2010) -- WestJet has begun new seasonal nonstop service between Toronto and Santa Clara, Cuba. WestJet will fly between Toronto and Santa Clara weekly each Friday. One-way fares, available in both directions on non-stop flights only, are available from $149 plus applicable taxes and fees. For more information, call WestJet's Sales Super Centre at 888-WEST-JET (937-8538) or visit www.westjet.com.

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Westjet Launches New Service to Cayman Islands

(Dive Travel Business News - November 04, 2010) -- WestJet has launched seasonal non-stop service between Toronto and Grand Cayman. WestJet will fly between Toronto’s Pearson International Airport and Grand Cayman each Tuesday, Thursday and Sunday from Nov. 4, 2010, to April 28, 2011. One-way fares, available in both directions on nonstop flights only, are available from $179 plus applicable taxes and fees. WestJet Vacations also offers customized vacation packages for most of its scheduled destinations, including packages to Grand Cayman starting at $689, plus applicable fees and taxes, for air and three nights, all-inclusive. WestJet flies nonstop from Toronto to destinations including Cancun, Montego Bay, Holguin, Varadero, Cozumel, Miami, Freeport, Turks and Caicos, and St. Maarten. For more information call 888-WESTJET or visit www.westjet.com.

(Dive Travel Business News - September 9, 2010) -- Asia-Pacific airlines are raising ticket prices in response to a strong economic rebound in Asia, led by China, reflecting growing consumer confidence across the Asia-Pacific region. The International Air Transport Association (IATA) reports that the global passenger traffic to expand by 7.1 percent this year despite a projected easing of the economic rebound in the second half of 2010.

PATA reports that Fiji, the Marshall Islands, The Northern Marianas, Palau, Papua New Guinea, Samoa, Tahiti and Tonga all recorded double-digit increases in their China arrivals counts last year, ranging from a low of 11% to a high of 66%. In addition, the compound annual gross rate (CAGR) for the 2005-2009 period for most of these Pacific island destinations has also been relatively high, as Chinese travellers continue to search for new international destinations for both business and pleasure. read more »

US Travel Promotion Act Starts Sept 15, 2010

US Travel Promotion Act begins Sept 15, 2010

(Dive Travel Business News - Sept 8, 2010) -- Earlier this summer, the U.S. Government raised U.S. passport fees substantially, increasing the cost for US citizens traveling abroad. This fall, the focus will be on inbound travel with the new U.S. Travel Promotion Act: This Act, which goes into effect next week on Wednesday, September 15, calls for a $14 fee to be levied on travelers from 36 nations who enter the U.S.

The 36 nations are those that fall under the U.S. Visa Waiver Program, which allows visits to the U.S. of up to 90 days without the necessity of a seeking a visa (for non-work related travel).

Travelers from Visa Waiver Program countries will pay the $14 when they register online for U.S. travel through the Electronic System for Travel Authorization. Of the $14 fee, $10 will go toward tourism marketing and $4 will cover the operating costs of registering the travelers for the Electronic System for Travel Authorization. read more »

Mexicana Airlines Files for Bankruptcy Protection

Mexicana Airlines files bankruptcy, stops ticketing

(Dive Travel Business News - August 5, 2010) -- Mexicana Airlines filed for bankruptcy protection in Mexico and the U.S. earlier this week. The airline reported $1.2 billion in liabilities as of June 30, and $768.5 million in assets. Creditors have seized three of Mexicana's planes. The company owns nine of the 64 aircraft in its fleet. During its restructuring, Mexicana intends to cut staff pay and benefits.

Mexicana suspended ticket sales on Wednesday August 4. The airline said it will "continue to operate its flights as scheduled to protect its passengers."

"Clearly, they’re not going to be operating very long without selling tickets," said analyst Bob Mann of aviation consultancy RW Mann. "The actions they’ve taken are actually quite drastic and I’m not sure they’ve made it any better, only more urgent. Current bookings won’t be enough to keep it flying very long." read more »

Update: US Aviation Sub-committee Hearing on Airline Add-on Fees

(Dive Travel Business News - July 15, 2010) -- A report released Wednesday by the Government Accountability Office (GAO) indicates that the growing number of airline ancillary fees can be confusing and misleading to consumers and ought to come with better disclosures.

There have been many intended and unintended consequences of the unbundling fees from ticket prices. According to the GAO report: read more »