Sky’s the limit for new airline fees

Wednesday, 16 Dec, 2010 0

The airlines new motto might be “let no fee go unnoticed. “ The latest: Continental Airlines offers an option to hold a reservation and lock-in the ticket price for 72 hours or seven days. Sounds good especially without any commitment to purchase a ticket.
 

Except there’s a fee, of course, beginning at US$5 for a 72-hour hold and $9 for a seven-day hold.

The fees can vary according to routes and other factors, and can quickly add up because they are applicable for each traveler.
 

But that could be only the beginning.
 

“I think it’s a great idea, so I think others will follow," Ray Neidl an airline specialist with the Maxim Group, told ABC News "It’s still one more thing they figured out how to get a fee.
 

Ever-growing airline fees continue to come under attack on many fronts, particularly since they are often not clear for consumers.
 

The International Air Transport Association, which represents 230 airlines in more than 115 countries, says baggage rules "are becoming increasingly complex and confusing,” and airlines "must improve transparency so travelers know what to expect."
 

Overall, the 20 largest US airlines collected $906.4 million in baggage-related revenue in the third quarter of last year, government data shows.
 

“New international fees, a rebound in air travel and limited overhead space were factors,” said The Chicago Tribune, quoting observers.
 

“The sky appears to be the limit when it comes to the money airlines make by charging passengers to check luggage,” the newspaper said.
 

The most lucrative fees have been for checking baggage — $590.4 million in the third quarter — and for changing reservations.
 

International fees adopted this year, a rebound in air travel and growing passenger frustration over limited overhead space in airplane cabins all contributed to the skyrocketing fee income, observers said.
 

Passengers are at times tiring of the hassle of dragging bags onboard airlines, said Tom Parsons, founder and ceo of BestFares.com.
 

"It could be that more people elected not to fight for overhead space too," Parsons said.
 

The only airline exception to the new fees is Southwest.
 

And though some passengers still bristle at a la carte charges for services that were formerly free, for many they’ve become just another travel cost, analysts said.
 

Overseas carriers are also starting to adopt similar fees.
 

Continental says its new option, FareLock, is for those customers who need extra time to plan their travel before purchasing a ticket.
FareLock gives customers additional flexibility to plan their travels and avoid the risk of price increases or sold-out flights, says the airline.
 

The carrier says it will continue to offer its 24-hour flexible booking policy that allows reservation changes and cancellations with full refund without a fee within 24 hours of booking. For customers choosing FareLock, the 24-hour flexible booking policy remains in effect upon ticketing, although the FareLock fee is non-refundable.
 

What’s next? Toilet fees? Ryan Air’s owner, Michael O’Leary, who is known for his facetiousness, says he is serious about that one. He’s even set a price: one euro or one pound sterling, depending on the route
 

By David Wilkening
 



 

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