Thursday, April 29, 2010
Monday, April 26, 2010
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Friday, April 23, 2010
Airline fees update: What can you expect in 2010?
Checked bag fees: Bigger, stronger, more annoying
In April 2009, US Airways debuted a two-tiered fee structure for checked bags: Travelers would pay $5 more at the airport than they would online. In airline PR parlance, this was a "discount." In real-world terms, this was a cynical attempt to grab an extra $5 from customers who forgot to pay online or simply didn't realize they'd pay the extra $5 at the airport. Naturally, Continental, Delta, Hawaiian, and United followed suit, because no bad idea should go unduplicated.
Baggage fees have also crept up, and spread to the international market. Domestic travelers can now expect to pay as much as $25 for the first bag, and international travelers could pay between $45 and $60 for the second checked bag.
It's worth noting that since last year's Airline Fees: The Next Generation, Alaska Airlines has added a checked bag fee, leaving us with just two airlines that let you check luggage for free: Southwest (first and second bag), and JetBlue (first bag only).
Check our Ultimate Guide to Airline Fees for an up-to-date list of fees and charges.
How this affects you
The "gotcha" effect of the two-tiered structure has probably faded by now, but it's still important to remember that many airlines charge two prices for the same fee—and not only bag fees. Alaska, Spirit, and Virgin America all have a two-tiered price system for change fees.
As for the fees themselves, it seems that every fee hike could be the last ... until the next one rolls around. Is there a limit to how much airlines will charge? 2010 may be the year we find out.
Carry-on-bag fees crash the party
Spirit recently dropped a bomb on the travel world when it announced it will charge up to $45 for carry-on bags, in addition to its fees for checked bags. This decision grants Spirit the distinction of being the first carrier to allow no free luggage whatsoever, aside from a small bag that fits under the seat—perfect for the individual who travels with only one change of clothes and maybe a sandwich.
How this affects you
The implications of Spirit's move are thus far unclear, but the potential for more airlines to add carry-on fees surely has travelers nervous. Are carry-on fees the wave of the future? Will we someday live in a world where any piece of luggage larger than a knapsack costs extra?
At first glance, the idea of more airlines charging for carry-ons seems unlikely. Widespread carry-on charges would be an affront to passengers. Heck, one senator is even trying to block the fee entirely.
And yet ... that's what we said about checked bags. Stay tuned, folks, this one could get ugly.
Holiday surcharge ruins Christmas
Much debate ensued when airlines began adding a holiday surcharge of $10 to $20 on peak Thanksgiving and Christmas travel days: Is it really a fee? Don't the airlines typically raise fares for the holidays? The answer is "yes," to both. What differentiates the surcharge is that it allows airlines to target specific holiday dates without raising fares overall. Think of it as an old dog learning a new trick.
And that trick is apparently here to stay. American, Delta, Continental, United, and US Airways extended their surcharges into 2010, hitting popular spring break and Memorial Day travel dates. Whatever the surcharge is—a fee, or just business as usual—it's clearly here to stay.
How this affects you
Fundamentally, the impact of these surcharges is minimal. Travelers have always paid a premium around the holidays and other peak times, and these surcharges don't change that. They simply add a layer of complexity to the process, one more factor to consider when booking.
Travelers should still compare fares across a number of dates, and try to be as flexible as possible when flying home for the holidays. Track the surcharges, and keep them in mind when sifting through fares. If anything, the surcharges may actually help travelers by highlighting which days not to fly.
(In)convenience fees
More and more we're seeing airlines tack on fees for services that make flying a little easier. Prefer to select your seat in advance? British Airways will charge you $30. Need to board first? Southwest will happily let you do this for $10. Want to book online? Spirit's cool with that, for $5. Need to use the restroom ... well, let's not get into that.
How this affects you
The effect here is obvious: You're going to get less unless you pay more. With airlines trying to unbundle fares as much as possible, it's fair to expect more carriers to gravitate toward charging for everything you don't "need." After all, if the basic elements of air travel—checked bags, carry-on bags, etc.—are fair game, why not charge for something that, using the airlines' definition of the word, is merely a convenience?
Travelers will need to be increasingly diligent when it comes to comparing fares. Ask yourself: What's included in this ticket? What will I need onboard? How much will this extra stuff cost? Add it up, and compare, compare, compare.
Goodbye, standby; Hello overpriced same-day travel
Standby travel has been dying a slow death, but the end, sadly, may finally be here. So far this year, both American and United have nixed traditional standby in favor of same-day confirmed travel for $50.
How this affects you
Most people don't plan their vacations around traveling standby, but business travelers, students, and passengers who simply have loose schedules have long used the tactic. As it stands now, only AirTran and JetBlue allow traditional standby travel, and JetBlue limits your options to the flight immediately before your scheduled flight. Every other airline prohibits free, unconfirmed same-day standby in favor of a confirmed same-day option, to the tune of $50 to $75.
Good news: Online travel agencies waived a ton of fees!
Perhaps the lone bright spot in the fees game was the en masse elimination of airline booking fees at Expedia, Travelocity, and Orbitz. Expedia and Orbitz also wiped out a number of hotel fees, including cancellation fees.
How this affects you
Consider the playing field leveled. In the past, you often had to consider the extra $5 (or more) that was tacked on to airfare booked at one of the big online travel agents (OTAs). In many cases, booking directly with the airline was actually cheaper than booking with an Expedia or Travelocity. Not so, anymore.
But the real coup for travelers is the elimination of hotel fees. Expedia, Orbitz, and Priceline got rid of their hotel change and cancellation fees, and Expedia also eliminated its phone booking fee. All of this combines to make OTAs a much more appealing option for travelers in 2010.
Monday, April 19, 2010
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Sunday, April 11, 2010
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Wednesday, April 7, 2010
Spirit Airlines to charge a $20-$45 fee for carry-on bags
Spirit, the first domestic airline to charge for checking a bag, will now charge fliers $20 to $30 for carry-ons that go in the overhead bins and $45 if the bag is paid for at the gate. The new fees apply to trips bought beginning Tuesday for travel on and after Aug. 1. The fee doesn't apply to carry-ons that fit under the seat.
"In addition to lowering fares even further, this will reduce the number of carry-on bags, which will improve in-flight safety and efficiency by speeding up the boarding and deplaning process," Spirit Chief Operating Officer Ken McKenzie said in a statement.
Some passenger advocates and travel experts say the new fees take the trend of tacking on extra charges too far and could cost Spirit customers.
"With fees like this, airlines have crossed the line," says Anne Banas, executive editor of SmarterTravel. "I get charging for pillows and blankets ... but carry-on bags are fundamental. Who travels with nothing?"
Spirit, which calls itself an ultralow-fare carrier, has often been a magnet for controversy, criticized for its customer service and fined in 2008 for not including some fees in base fares it cited online.
"Enough is enough," Brandon Macsata, executive director of the Association for Airline Passenger Rights, said in a statement. "What's to follow: Should we be expecting to pay to use the restrooms while on board the aircraft, too?"
In 2008, airlines began charging passengers to check bags to offset rapidly rising fuel costs and then to shore up recession-battered finances. But some experts say it's unlikely Spirit's latest move will catch on. "The potential to annoy the customer is fairly high, so I doubt most other U.S. airlines would follow this," says Jami Counter, senior director of TripAdvisor Flights.
Others say potentially winnowing the amount of carry-on luggage isn't a bad idea.
"How many people have thrown their backs out putting their suitcases in the overhead bins?" says George Hobica, president of Airfarewatchdog, who agrees that stowing carry-ons slows the boarding and emptying of flights. "I do think that it's not a bad thing to roll back the clock to ... when people got on board with (just) their coat and hat."
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Monday, April 5, 2010
New rules for screening fliers in place
The emergency order was implemented after the attempted bombing of an airliner over Detroit on Christmas Day.
The new system will treat all passengers flying into the USA the same way, regardless of nationality, said the officials, who were briefed on the policy. They spoke on the condition of anonymity because the policy is not being announced until today.
The policy is the Obama administration's latest effort to tighten international aviation security since a Nigerian man, Umar Farouk Abdulmutallab, boarded a flight in Amsterdam allegedly carrying explosives in his underwear. Authorities said Abdulmutallab attempted to blow up the jet, which landed safely in Detroit.
In early January, the administration required foreign airports to give extra checkpoint scrutiny to anyone flying to the United States from one of 14 countries or who is a citizen of one of those countries.
Islamic groups such as the Muslim Public Affairs Council assailed the policy as profiling because most of the countries, such as Algeria, Lebanon and Saudi Arabia, are predominantly Muslim.
The policy being phased in this month will use intelligence snippets about terrorists whose full names are not known.
Authorities will put together information such as a terrorist's partial name, facial features, recent travel history or home country. U.S.-bound passengers who match those descriptions will face extra checkpoint screening at foreign airports, according to one of the administration officials.
The system is tailored toward intelligence information and possible threats, rather than stopping people of a particular nationality, the official said.
One of the officials acknowledged shortcomings of the January order, calling it a blunt tool that is not as effective as it was initially because terrorists figured out how to circumvent it.
The new system should significantly reduce the number of U.S.-bound passengers requiring extra airport screening because it will not focus on the thousands of people a day flying from the 14 terrorism-prone countries, one official said.
Taxes on hotel rooms are rising
Among those increasing taxes or considering it: Baltimore; Scottsdale, Ariz.; Santa Clara, Calif.; and Connecticut.
Taxing visitors is an old habit for local governments. Revenue from taxes on hotel rooms and rental cars have been used to fund tourism promotion, build stadiums and repair roads.
While the taxes can infuriate travelers, they're seen as a politically palatable option in tough economic times.
"The government entities are hurting financially and are looking for creative means to generate more revenue," says Trisha Pugal, CEO of Wisconsin Innkeepers Association.
A report by the National Business Travel Association last year says taxes for a single night at the national average room rate of $95.61 were $13.12. The combined lodging taxes levied by state, county and city averaged 13.73%. Tax rates ranged from 10.05% in Burbank, Calif., to 17.91% in New York.
The lower end, below $11 a night in tax, includes Burbank, Detroit, Fort Lauderdale, Oakland and San Jose. Columbus, Dallas, Houston, Kansas City, Nashville, New York and San Antonio are on the higher end, above $16. Recently:
•Voters in Scottsdale and Tempe, Ariz., last month approved increasing hotel room taxes by 2 percentage points. In Scottsdale, the rate will increase to 13.92%. Tempe's rate rises to 14.07%. Brent DeRaad of Scottsdale Convention & Visitors Bureau says about 18% of the revenue funds his organization. The city, county and state split the rest.
•Santa Clara voted on an increase last month to generate $35 million of the $937 million needed to build a stadium for the San Francisco 49ers NFL team. The room tax rises from 9.5% to 11.5%.
•Baltimore Mayor Stephanie Rawlings-Blake will introduce measures April 12 to address the city's $120 million deficit. Raising the hotel tax from 7.5% is an option being discussed, says Ryan O'Doherty, a spokesman for the mayor.
•Connecticut is considering raising its 12% hotel tax to 15%. The money would be distributed to cities and towns.
