Airline Fees Reach Crisis Point

 

Few issues impact travel agents and their ability to serve their clients as does the proliferation of ancillary airline fees. The agents' ability to price the costs of a ticket is effected as is their credibility with clients. Agents need technology and transparency to be effective.

This week’s Congressional hearing by the House Transportation and Infrastructure Subcommittee on Aviation on ancillary fees helped clarify the issues and drew battle lines for a conflict that isn’t going away.

Chaired by Rep. Jerry Costello (D-IL), the hearings drew testimony from Spirit Airlines, a leading low cost carrier (LCC) who believes ancillary fees are justifiable, and Southwest Airlines, a powerhouse and profitable performer who does not charge ancillary fees for services (except for third bags and unaccompanied minors).

ASTA, the Interactive Travel Services Association (ITSA) and the Consumer Travel Alliance (CTA) were represented, as was the Department of Transportation (DOT) and the General Accountability Office (GAO). Virtually all argued for greater transparency and took the consumers viewpoint that airlines must make clear what fees are being charged.

Even the GAO, preoccupied with revenue issues, argued that without DOT action that the airlines would do nothing unless compelled. ”Information about the fees is not fully disclosed through all ticket distribution channels used by consumers, making it difficult for them to compare the total cost of flights offered by different carriers,” the GAO said.

ITSA, ASTA and the CTA were represented by Kyle Moore, Sabre’s vice president for product marketing. The three groups supported prompt and full disclosure of information about all of the new fees applicable to air travel. Sabre also said it was ready to introduce new technology tools to assist travelers to select services and determine costs.

Costello’s sub committee argued that as airlines "unbundle" their fares, consumers need to have immediate, easy and understandable access to all of the new fees. Airlines should make those promptly available to the public through every travel distributor.

Airline Fees Reach Crisis Point

 

Few issues impact travel agents and their ability to serve their clients as does the proliferation of ancillary airline fees. The agents' ability to price the costs of a ticket is effected as is their credibility with clients. Agents need technology and transparency to be effective.

This week’s Congressional hearing by the House Transportation and Infrastructure Subcommittee on Aviation on ancillary fees helped clarify the issues and drew battle lines for a conflict that isn’t going away.

Chaired by Rep. Jerry Costello (D-IL), the hearings drew testimony from Spirit Airlines, a leading low cost carrier (LCC) who believes ancillary fees are justifiable, and Southwest Airlines, a powerhouse and profitable performer who does not charge ancillary fees for services (except for third bags and unaccompanied minors).

ASTA, the Interactive Travel Services Association (ITSA) and the Consumer Travel Alliance (CTA) were represented, as was the Department of Transportation (DOT) and the General Accountability Office (GAO). Virtually all argued for greater transparency and took the consumers viewpoint that airlines must make clear what fees are being charged.

Even the GAO, preoccupied with revenue issues, argued that without DOT action that the airlines would do nothing unless compelled. ”Information about the fees is not fully disclosed through all ticket distribution channels used by consumers, making it difficult for them to compare the total cost of flights offered by different carriers,” the GAO said.

ITSA, ASTA and the CTA were represented by Kyle Moore, Sabre’s vice president for product marketing. The three groups supported prompt and full disclosure of information about all of the new fees applicable to air travel. Sabre also said it was ready to introduce new technology tools to assist travelers to select services and determine costs.

Costello’s sub committee argued that as airlines "unbundle" their fares, consumers need to have immediate, easy and understandable access to all of the new fees. Airlines should make those promptly available to the public through every travel distributor.