Tag Archives for fees.
There’s a simple reason that annoying fees are prevalent in travel. They work. Customers spend more money. And in some cases politics and the tax code encourage them.
John Arnold shares what happened at StubHub when they tested an elimination of hidden fees for some customers: those who were shown transparent all-in pricing spent less money.
Travelers need to be cautious of increasingly prevalent ‘No Show’ fees, particularly with rental car companies like Hertz, which may charge a day’s rental for no-shows. While rental agencies historically overbook and often fail to honor reservations, strategies such as booking through third parties can help travelers avoid these unexpected charges.
California’s Governor signed SB 478 on Saturday. It bans hidden fees, though airlines and car rentals are excluded from the ban. That leaves hotels as the major offender in the travel space which will feel the brunt of the impact – and online travel agencies which sell hotel rooms, too.
It’s pretty common for passengers to view it as a ‘hack’ to wear a jacket with lots of pockets (think Scott-e-Vest) and stuff their bodies full of their carry on items instead of using luggage.
One woman flying Frontier Airlines tried a tact I hadn’t seen before. She… stuffed everything in the seat of her pants (“extra junk in her trunk”).
What on earth is a “Hospitality Charge,” as seen at Bruegger’s Bagels in the Minneapolis airport? There’s signage explaining that a 4.5% surcharge is added on top of menu prices to cover ‘hospitality’ but also explains that this is not a tip and does not go to workers.
Southwest Airlines, the largest U.S. domestic airline, is raising several fees effective August 15, 2023, the carrier has revealed to employees in a document reviewed by View From The Wing. They will be raising pet and unaccompanied minor fees, as well as fees for additional, oversize, and overweight bags. Third and beyond checked bag goes from $75 to 125. Overweight bags go from $75 for up to 100 pounds to $100 for up to 70 pounds or $125 for up to 100 pounds. Oversized bags go from $75 to $125. Unaccompanied minor fees go from $50 to $100. Pets go from $95 to $125 per carrier, with no change to intra-Hawaii pet fees. Southwest still doesn’t charge for seats (they don’t pre-assign seats), don’t have change fees or basic economy fares that are unchangeable, and…
The current version of the FAA reauthorization bill in the House, a product of compromise between Republicans and Democrats on the Transportation Committee, would reverse an Obama-era rule requiring airlines to display ‘all-in’ pricing when they advertise fares “as long as they include a link to the all-in price or disclose it some other way.”
When the Marriott LAX rolled out this extra charge ‘to protect their workers’ it was $10.72 per night. Two months later they’ve already increased the fee to $13.87 per night – a 29% increase.
At 1004 rooms, this hotel has the potential to generate $5,082,800 per year with their new Worker Protection charge. They aren’t required to spend the money on worker protection (indeed they won’t). Even at 80% occupancy that’s $4 million a year, most of which goes to the hotel’s bottom-line.
Airbnb makes sense in towns where there aren’t suitable hotels. It makes sense to rent a full house for a large family or when traveling with a group of friend. But the current homesharing model is very broken, and as a result choosing Airbnb makes no sense for most stays.
The company understands that and wants to change that. It’s updating how prices are shown, and shaming hosts that impose bizarre conditions on guests. In fact, the co-founder and CEO of Airbnb is shaming owners who make guests do laundry before they leave.
President Biden has been talking up poor disclosure of airline fees, as though consumers don’t know that checked bags come with a fee, or that airlines don’t tell them what a seat assignment might cost (they literally present a seat map with prices, because they are trying to sell these seats).
Few politicians have ever hurt themselves railing against airlines.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
