September 29, 2009 12:47 PM
- Text
Will $10 Holiday Surcharge Save Airlines or Tick Off Travelers?
(MoneyWatch)
Airlines are planning a $10 surcharge for flights on Nov. 29, Jan. 2 and Jan. 3 (that's the Sunday after Thanksgiving and the Saturday and Sunday after New Year's Day, respectively.) The surcharge will already be placed in the fare ticket each way by American Airlines, with Delta, US Airways and Northwest airlines also following suit.
The new cost is just one of many new fees charged by airlines to create more revenue at the expense of customer loyalty and service. So is this simply a case of price-gouging or good business?
"It's not so much a surcharge as a quick way to upcharge for those premium days. Yes, it brings in a lot of sorely needed revenue to the airlines -- but to the detriment of holiday travelers, who are already paying stiff fares for those high-traffic days," said FareCompare.com chief executive Rick Seaney. Last year, air travelers had the last laugh by booking last minute and getting great fares, but industry insiders say that's unlikely to happen this year.
Apparently the hefty holiday air ticket will be akin to hotels charging more on weekends, holidays or during conventions. I'd like to say that is unheard of, but it isn't. When booking travel, some flights -- namely those not leaving at 5:45 a.m or on a Wednesday -- tend to be higher-priced, even if only by $10 to $25.
So far, Air Tran Airways, Southwest and Continental airlines have stated they are not matching the surcharge. I would advise them to publicize that fact and capitalize on holiday cheer -- or at least on the falling Consumer Confidence Index.
Airlines are planning a $10 surcharge for flights on Nov. 29, Jan. 2 and Jan. 3 (that's the Sunday after Thanksgiving and the Saturday and Sunday after New Year's Day, respectively.) The surcharge will already be placed in the fare ticket each way by American Airlines, with Delta, US Airways and Northwest airlines also following suit.The new cost is just one of many new fees charged by airlines to create more revenue at the expense of customer loyalty and service. So is this simply a case of price-gouging or good business?
"It's not so much a surcharge as a quick way to upcharge for those premium days. Yes, it brings in a lot of sorely needed revenue to the airlines -- but to the detriment of holiday travelers, who are already paying stiff fares for those high-traffic days," said FareCompare.com chief executive Rick Seaney. Last year, air travelers had the last laugh by booking last minute and getting great fares, but industry insiders say that's unlikely to happen this year.
Apparently the hefty holiday air ticket will be akin to hotels charging more on weekends, holidays or during conventions. I'd like to say that is unheard of, but it isn't. When booking travel, some flights -- namely those not leaving at 5:45 a.m or on a Wednesday -- tend to be higher-priced, even if only by $10 to $25.
So far, Air Tran Airways, Southwest and Continental airlines have stated they are not matching the surcharge. I would advise them to publicize that fact and capitalize on holiday cheer -- or at least on the falling Consumer Confidence Index.
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