The Price Of Government Meddling
You probably won't have any idea how much government meddling is going into your plane ticket, thanks to a new DOT rule that kicked in on January 26. It requires airlines to add in all taxes and government fees that get stuck onto the ticket and reveal the total ticket price in advertising and marketing.
Come on...does anyone not realize that taxes and fees will be tacked on to the price of the $6 from Houston to Paris!!! fare? Do we really need the government to remind us of that? Thom Lambert blogs at Truth on the Market about a problem with the new rule:
How consumer-friendly is this rule? Won't it be easier to raise taxes and fees when they aren't presented as a line item, when consumers aren't "startled" to see the exorbitant amount they're paying for government services?...Consumer advocates ... lauding the new Department of Transportation rule ... don't seem to realize that higher taxes are bad for consumers and that taxes are more likely to rise when the government can hide them. They also seem to care little about consumer sovereignty. Don't consumers have a right to know how much they're paying to have scads of Homeland Security officers bark orders at them and gawk at their privates?
via @overlawyered
Now what I'd like to see is the smart(ass) airline come up with an invoice like:
Jim P. at January 28, 2012 11:08 PM
I do think all the airlines' fees need to be in the advertised price. I really dislike that I have to research and figure out what the real cost is. One trip I was planning my flight to point A had a baggage fee - I was to stay one day there to meet with someone - then flee to point B to stay a week(no fee) - then home (no fee). That and they need to reasonably describe things. The included "Afternoon snack" turned out to be 4 of those micro pretzels and one of their cups of soda/water/coffee.
Same thing with hotels...what is up with the non-optional resort fee and house keeping fee?
The Former Banker at January 29, 2012 12:34 AM
I was under the impression that this was supposed to help as it would include the 'checked bag' fees which are usually $25 or more per trip.
What they need to do is change the way the airlines are taxed, so that the fees are not taxed at a different (lower) rate than the airfare.
Isn't it funny how these fees were added when the price of fuel was high, but didn't go away when the price of fuel fell? That's odd.
DrCos at January 29, 2012 4:38 AM
I think this is great, frankly, I travel a lot and I hate it when planes lie and say their fare is $800, and then it ends up being $1200. If airport fees were consistent across websites and airports it would be one thing, and I could mentally add the $400 or $300 or whatever when looking at prices, but they aren't.
This will make my life much easier, as we travel frequently and when you have to click every individual link to see the real price it takes a long time.
NicoleK at January 29, 2012 5:42 AM
Back in the day, in Japan, the price was the price. There was sales tax, baked into the price. Mentally, we've all adjusted to the additional sales tax here, but travelling, you never know what's taxed, or at what rate.
The airline fees and taxes are big enough, and numerous enough, that they should be disclosed. Like mortgage fees and taxes. Because a few bucks aren't normally a problem, but the unexpected few hundred dollars is. At least for this one percenter.
MarkD at January 29, 2012 7:52 AM
They're being required to add in all of the taxes and Gov't fees, but not their own? That seems odd. The airlines do a lot more hiding and blindsiding you with fees than the government does.
I've said it many times - If an airline advertised a HIGHER fare, and said "All inclusive, not a pennt more", they would gain a LOT of business, even if their price was MORE than the other airlines after adding in all the other surprises and up-sells.
Vinnie Bartilucci at January 29, 2012 7:56 AM
Hmm... Delta's Web site, to name one, gives both the list price and the price with all taxes and fees added. Does this mean that they can no longer do that?
Cousin Dave at January 29, 2012 9:59 AM
Yeah, now I can pay that $25 dollar baggae fee whether or not I have a bag
lujlp at January 29, 2012 11:25 AM
Hmm... Delta's Web site, to name one, gives both the list price and the price with all taxes and fees added. Does this mean that they can no longer do that?
Dave, it was my impression that the new rule was going to require the total price to be displayed along with the list price, not in place of it. And, according to this article in Seattle Times, that's the case:
JD at January 29, 2012 11:47 AM
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