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What's wrong with the airlines' new $10 surcharge for travel on busy days? (UPDATED)
You're already paying airlines extra fees for checking your bags, feeding you bad food, and letting you watch a bad movie. Now, as Gadling mentioned a few days ago, several airlines, including American, United, U.S. Airways, and Delta, have announced that beginning this Thanksgiving, domestic passengers will have to pay an extra $10 for the privilege of flying on a busy travel day.
The surcharge will apply to domestic flights on the Sunday after Thanksgiving and to flights on January 2 and 3, the first weekend after New Year's Day.
So what's wrong with this? Well, it's not that the airlines are charging a premium to people who fly on very busy days-- they already do that. (Ever looked at the price of a Christmas Eve plane ticket? Ouch.) No, the problem is that the airlines are creating yet another new "surcharge" instead of simply adding $10 to the base price of a ticket. (see update below)
The reason they're doing this is obvious: it allows the airline to hide the premium in the "taxes and fees" portion of the ticket (where it might go unnoticed) rather than in the "base airfare" price. This is, of course, a bit deceptive-- taxes and fees already make up a a large chunk, sometimes the majority, of a plane ticket's price-- and this new surcharge doesn't quite feel legitimate. One Gadling commenter said it well: "It's the sneaky nature of the thing that makes us dislike it."
Note that, as Scott wrote in his original post, Continental, Southwest, Alaska Airlines, and Jet Blue, perhaps recognizing that their customers already feel nickel-and-dimed to death, have decided they will not institute the fees.
If these surcharges are instituted with little backlash, look for them to be expanded to Valentine's Day, Mother's Day, Father's Day, Arbor Day, weekends...
UPDATE: American Airlines' Media Relations guru Tim Smith emails to say:
"Any surcharge (for any reason) shows up directly IN THE FARE AMOUNT and does NOT affect any of the applicable taxes or fees. As always the customer gets to see the bottom line fare and full price PRIOR to making any purchase decision. The customer does not notice a difference! If it is $10 in the fare or $10 as a surcharge it is the same and looks the same!...
"So, if it's the same as adding $10 to the fare, why not do it that way? The answer is simple, though still perhaps difficult for people to understand. Most fare changes (which cover thousands of markets and many dates of travel) are filed into a massive, computerized clearinghouse (ATPCO) that then pushes the fare information out to all the different computerized reservations systems – both online and those used by travel agents.
Gadling's own Tom Johansmeyer discussed the scourge of airline fees here. I defended(!) Ryanair's proposed "pay to pee" scheme here.
Filed under: Business, United States, Airlines










Reader Comments (Page 1 of 1)
Lauren Sep 28th 2009 4:42PM
What's the coming surcharge for making passengers' lives miserable? A hefty fee, I'd imagine, judging on the industry resources required to do a thorough job.
walki-talki.com Sep 28th 2009 5:30PM
I agree with Lauren. The miserable travel conditions around the holidays are a sufficient premium for people to pay.
Your point about the deceptive way in which airlines are presenting the markups is spot on, however. On my last trip, I booked on Delta for most of the legs of the trip, only to discover that American charged a lower fee for checked luggage on the last leg. So, in effect, this even takes away the consumer's ability to shop based on price because they are not required to disclose those fees at the time of booking. Hence, you don't know what the full price for your ticket is! You find the true price at the airport during check-in, and it's too late to change your mind at that point.
My own theory is that pretty soon the airlines will start to charge for air on flights. There will be oxygen optional flights pretty soon.
You can bring your own mask and oxygen tank, but you'll have to pay an extra $20 to check it in, of course.
The industry is in a pretty dismal state.
Ladyexpat Sep 28th 2009 7:16PM
The travel industry seems to be going the way of the banks. Charge for absolutely everything, and if they can bury the charges all the better.
We need a worldwide "Don't Fly Day".
verdegrrl Sep 29th 2009 12:17AM
These days if it's anything less than 6 hours drive time, we take the car. It's just not worth the hassles of flying for anything less than that time. Between the hidden costs and huge time investment as well as loss of dignity, it's just less stressful to take a car.
It's a pity the US is too large for trains to make much sense.
Sam W Sep 29th 2009 9:45AM
Here is a crazy idea.... on busy days increase the base price, don't hide it in another darn fee! That is just deceptive of the airline to keep a low base price and tack on yet one more fee when you get to the airport. Have they no shame left?
pckn Sep 29th 2009 2:26PM
Airlines and extra fees, surcharges....you know what people. dont talk about, do something, in this instance DO NOTHING, CUT OUT A FLIGHT OR TWO, or best yet dont fly at all, The more people keep accepting this sh** and pay the more they will do it. If everyone decides to not fly, then they will cut out all this extra crap. ENOUGH IS ENOUGH AMERICA, start doing something about it and STOP JUST TALKING ABOUT IT....
TM Sep 29th 2009 6:31PM
Just raise the fares to the point to where you can break even on a 50% full flight. It will keep the greyhound and the people who complain about fares off the aircraft. Bring back the luxury. Let the rest take greyhound!
Geo Sep 29th 2009 6:44PM
YES! Let all the airlines go under minus maybe 2 or 3 and then let's see how competition reduces the fares. Look what happens when they dump the market...PHL BOS went up 275%....YES let them all go under cause I want to pay 700 bucks for 200 miles!