Airlines can't exclude fees from price

[jeffrey]

Just received this:

"As a valued customer, we would like to make you aware of the Department of Transportation's new price advertising rule and the steps that we are taking to be in compliance. This price advertising rule affects all airlines and requires that advertised fares include all government-imposed taxes and fees that the Customer is being asked to pay.

The fares displayed will now include all government excise tax, government segment fees, September 11th security fees, and airport passenger facility charges. It is important to note that fares have not increased, but that the initial fare display now includes all government-imposed taxes and fees. Customers have always paid these taxes and fees; however, previously these taxes and fees were added to the fare at time of purchase...."

I do remember reading about this in the past and it is good to know all those fees upfront. Of course, this will not include the airline imposed fees such as fees for baggage, etc.

[bjl584]

The airlines are against this new law. They apparently don't want to disclose all of their fees. It will interesting to see how things play out.

[Like2Plan]

I like this. It makes comparing fares a lot easier as well as understanding how much something is going to cost all in.

[disneysteve]

I like this. It makes comparing fares a lot easier as well as understanding how much something is going to cost all in.

I agree. This is a great idea. I wish hotels would be forced to do the same.

I don't really think the airlines should oppose this since it affects all of them equally. Yes, Southwest's apparent rate will rise but so will Spirit's and United's and Delta's. It still keeps everyone on an equal playing field.

I do wonder how this changes something like Spirit's $9 fare club? Will that now become the $14 fare club?

[disneysteve]

An e-mail today:

The Hidden Tax Sale!
As always, we have our famous ultra low fares on spirit.com, but the listed fares are now distorted because the U.S. Department of Transportation is forcing us to HIDE all of their taxes and fees in the fares you see, including our sale fare advertisements.

Taxes and fees can be different by destination, by country, based on whether you are flying into or out of an airport, and so on. You get the point – it makes it too difficult for us to provide the list of fares. In fact, by the time we could figure out how to calculate that, you'd be done with your vacation already.

So, instead of providing you our ultra low sale fares in a transparent format, we're going to have to just provide you with the routes and dates. We promise there are some great fares on those dates though – check them out!

Prior to this new regulation, we have NEVER sold a ticket without a customer knowing what their full price would be – we always showed the fare and the taxes and fees, but separately to ensure transparency. Now the government wants to combine those. You tell us - which do you think is more transparent? We think this lack of transparency that is being forced by our government is an outrage, and we encourage you to let your elected officials know that we should reduce regulation that burdens the American people.