Pricing still brings industry into disrepute
Comment by Jeremy Skidmore (www.jeremyskidmore.com)
The magic deadline of May 9 for quoting all-inclusive prices has passed, but what has really changed?
The Office of Fair Trading, with the backing of the Association of British Travel Agents, have been promising to take action against companies that do not show non-optional extras, so it will be interesting to see what they make of the latest developments.
No-frills carrier Ryanair caused gasps of astonishment when it announced its latest pricing policy.
First of all, it is selling around 10 million seats across Europe for between £10 and £20 in a move which many, including astute industry observer Noel Josephides of Sunvil Holidays, predict will lead to a bloodbath this summer. Noel has long predicted the overcapacity in the market will be the ruination of some companies and, not for the first time, he will probably be proved right.
But I digress, because the thing that really shocked many people was that Ryanair has started quoting headline fares inclusive of taxes and charges.
However, dig beneath the surface and it’s a different picture. If you book off its search engine you’ll be quoted a price exclusive of taxes and charges.
The no-frills carrier is nothing if not sharp, but will its latest policy satisfy the OFT?
Elsewhere, you can find various operators and airlines quoting fares exclusive of non-optional extras. Thomas Cook has promised to comply with the new rules, but at the time of writing, it had not. Neither had First Choice.
I also think their pricing policies generally do themselves and holidaymakers no favours. On the First Choice site, for example, it’s a real effort to take out the charges for meals, transfers, extra baggage etc. I suppose it’s acceptable to charge for these options, but there’s an assumption that you want them in the first place.
When you do opt out, you’re left with a price that bears no relation to the initial quote because First Choice hasn’t explained (unless you search hard on a previous page) that you also need to pay taxes and charges.
Frankly, I’m surprised at First Choice, which has often led the way among the big operators in trying to do things the right way and, for example, was trying to limit the damage to the environment before other operators thought there was a problem.
Another gripe of mine is when operators charge you to sit next to your partner/family on a flight. It’s ludicrous. Of course, you want to sit next to each other and it should not be an extra. Perhaps a fee for a seat will come next?
In short, the pricing policy of many operators and airlines is still a mess. We’ve seen a small step in the right direction this week, but it’s not enough.
Editor’s note: Since Jermey Skidmore wrote this comment, the OFT has announced that it will now take action against companies which do not comply to the new pricing regulations. See separate story – OFT gets tough over inclusive pricing.
Jeremy Skidmore
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