With a barrage of fees aggravating your travel adventure, where is the breaking point? At the airport, you’re informed one of your bags is five pounds overweight, and that bothersome $25-per-bag fee has now tripled! Perhaps your annoying fee is the exorbitant WiFi charge at hotels. Others cringe when renting a car, debating whether the collision-damage insurance is a necessary additional cost. Was it just a decade ago that these items were free?
Nothing cuts deeper than traveler sticker shock. Companies in the travel industry keep ticking the price up, and consumers feel the pinch of rising costs from airlines, hotels and car rentals. These ancillary fees and surcharges add insult to injury, yet fees have brought the travel industry, especially the airlines, out of the red and into the black. In 2012, major U.S. airlines brought in more baggage and reservation change/ cancellation fees than in 2011. Face it: These fees are big business, bringing in millions of dollars per month for the major U.S. airlines, and they are not going away.
Let’s take a look at the most aggravating travel fees and how to avoid them when possible.
FROM CHECKED BAG to priority boarding, rising to the top of the pack is an ever-changing array of airline fees and surcharges.
Open Allies for Airfare Transparency, a coalition of nearly 400 independent distributors and sellers of air travel, corporate travel departments, travel trade associations and consumer organizations, is taking the plane by the wings (so to speak). Executive Director David Kelly says, “Our coalition brings travel industry movers and shakers together to talk about these fees with the belief that all airline fares and fees, specifically boarding, baggage and seat assignments, should be transparent to the traveling public.”
In 2011, the U.S. Department of Transportation established new consumer protections for airline passengers with the goal to make flying more convenient and hassle-free, and Kelly says this was a step toward transparency. These requirements included refunded baggage fees for lost bags, increased compensation for bumped passengers on oversold flights and greater protection for passengers experiencing lengthy tarmac delays.
The Transportation Department continued its aggressive role of protecting airline passengers in 2012 by adding a compulsory “advertising provision,” requiring all mandatory taxes and fees to be included in the advertised fare.
According to Kelly, “Consumers can now price comparison shop across the airlines, enabling them to make smart buying decisions.”
Those smart decisions should also benefit from awareness of the annoying travel fees tacked on by airlines and whether it’s possible to avoid them.
If you’re the type that prefers to book by phone or in person, be prepared for a convenience fee ranging from $5 to $45 per ticket. With the exception of Southwest Airlines, nearly every major carrier adds booking fees for non-Internet transactions. Avoid this fee by logging online and, as always, be aware of exceptions, such as Spirit and Allegiant airlines, who supplement their low fares with an online booking fee.
Mention baggage fees and we all cringe. It’s perhaps the one fee few can avoid. Although international travelers may receive redemption, every major domestic carrier charges for checked bags, starting at $15 per segment for the first bag (Allegiant) up to $100 (Spirit). Check two bags and additional fees start at $17 (Hawaiian Airlines) up to $100 (Spirit). Additional bags can be as much as $200 (Delta Air Lines), and don’t even go there with oversized or overweight bags, from $50 to $175 per bag. Avoid baggage fees by flying on JetBlue (first bag free) or Southwest Airlines (two bags fly free), or with a well-packed carry-on — unless you are flying with Allegiant or Spirit, both charging $10–100 for carry-on bags per segment. Some passengers pay a little more by shipping bags via FedEx or UPS Ground directly to their hotel. Cost is about $70 for two 35-pound bags.
Want a better seat on the flight, extra legroom or priority boarding? It’s possible seat selection will be yet another surprise charge, ranging from $6 up to hundreds of dollars, depending on airline and preferred seat. Not all airlines add another fee for a simple seat selection; and if you’re not picky, allow the airline to choose or wait until the online check-in window and avoid the fee altogether. A friendly early check-in at the airport may also score you a better seat.
After months of saving your miles, your trans-Atlantic “awards ticket” could cost you $800 in fuel surcharges on a “free” economy ticket on British Airways. Aren’t mileage reward redemptions supposed to be free?
Scott Grimmer, founder of MileValue.com, an award booking service, agrees. “You deserve free travel for your hard-earned miles, but, unfortunately, award travel is no longer completely free. Take time in advance and do your homework. Know what the fees should be. For example, every takeoff from the U.S. is charged $2.50 for the 9/11 security fee.”
If the out-of-pocket fees for mileage redemption seem high, ask for a breakdown, Grimmer says. “Your award level determines your surcharges, but most fuel surcharges, security and government taxes are unavoidable. However, with careful planning, you can pay the minimum.”
Grimmer cites a recent client flying from San Diego to Delhi, India, who wanted to cash in his American Airlines reward miles. The price tag quoted for a pair of first-class tickets: 360,000 miles and $2,000 in cash. By avoiding the British Airways partner airline and its fuel surcharge, Grimmer got him there for 360,000 miles and $250 in cash.
Not everyone is an expert, so Grimmer recommends referencing the Matrix Airfare Search website, offering a complete breakdown of fees.
Ticket change fees are another aggravating travel cost, ranging from $50 to $150, in addition to often paying the difference in fare. The only way to avoid this additional cost is to only book when your plans are confirmed, purchase travel insurance or fly with Southwest Airlines (no change fees).
Another way to avoid airline fees is with elite membership in frequent-flyer loyalty programs, offering a sliding scale of reduced fees based on your status. Co-branded travel-related credit cards often come with an elite status and feature many of the benefits offered with elite status, as well as a free round-trip economy ticket, but these cards often come with an annual price tag.
THE 2012 NORTH AMERICA Hotel Guest Satisfaction Index Study by J.D. Power and Associates says hotel guest satisfaction declined, primarily due to charging guests more and providing less.
One of those additional charges occurs when you check out and discover the booking price tag isn’t always the bottom line, according to Pete Scott, director of marketing, Hotel Coupons.com, a 30-year leader in saving consumers dollars on domestic hotel travel.
Hotel and resort fees can include access to the gym, the pool, WiFi and other hotel amenities, and this charge can teeter toward $50; but Scott says, “When you check in, ask what, if any, additional fees are charged, and request a breakdown. If it’s 45 degrees outside, you’ll probably not use the pool; and if your visit is a quick overnight, you may not have time to go to the gym. If you do not use the services, ask for these charges to be removed when checking in. Resort fees may also be waived (often upon request) when a member of a hotel loyalty program, such as with Starwood.”
WiFi fees are rarely an optional feature for travelers. Ironically, the more you pay for your stay, the more likely you’ll also pay for WiFi (average $24 per day); and charging for Internet tops the J.D. Power study as a major reason for the decline in satisfaction. You can avoid this additional cost by logging on in the hotel lobby for free rather than enjoying the convenience of in-room access; hit nearby free WiFi hot spots, such as Starbucks; or join complimentary hotel loyalty programs, such as Fairmont President’s Club, and receive free Internet in your room. If you travel often enough, adding the feature of tethering to your mobile device may be worth the additional fee.
At drive-to destinations or for travelers with a rental car, parking fees rack up quickly when valet parking can be as much as $50 per day. Scott recommends self-parking or driving around the hotel for more reasonable parking options.
WHEN YOU SHOW UP at the rental car counter, you’ll often be asked to add collision-damage waiver insurance, or CDW, of as much as $16 per day; with a seven-day rental, that quickly adds up to $112. What you might not realize is that you may already have coverage with your personal auto insurance within the United States and Canada, and with your credit card company when traveling abroad. Before you take that road trip, make a call to both to confirm coverage. Then, when you show up at the counter jet-lag weary, you can firmly decline the coverage, knowing you’re protected. Early returns can also be penalized, so confirm the agency’s policy before assuming earlier is better.
ANOTHER PESKY EXPENDITURE can be foreign transaction fees, ranging from 3 to 7 percent. Sidestep the airport kiosks, as these typically offer the worst exchange rates and highest transaction fees. Withdrawing cash from an ATM typically has a lower fee attached. Prepayment of hotel and car rentals before traveling also helps avoid those fees. Consider using a credit card such as Capital One which doesn’t charge extra for purchases or currency conversion.
The good news is that by being aware and proactive, you can avoid paying the majority of these aggravating travel fees.
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