Revenue and Data Management

The US Department of Transportation (DOT) is being urged to move swiftly on transparency of all airline fees.

Even as Open Allies for Airfare Transparency praised the Department for adopting a rule requiring improved disclosure of baggage fees, the group mentioned that much more work needs to be done quickly to provide full disclosure of baggage and other major fees, such as for seating and boarding, before purchase, to enable meaningful comparison shopping across airlines of the “all-in” (fare+fees+taxes) price of a ticket.

The Department has announced plans for a supplementary rulemaking to address full disclosure of these fees through all distribution channels airlines choose to use, but recently delayed that rulemaking, with the result that consumers likely will not see full disclosure until 2013.

“Open Allies agrees, and underscores the urgency of swiftly taking the decisive steps to assure consumers access to all optional fees at every point of sale. Otherwise, consumers face another year, or longer, of confusion and complexity, with no meaningful way to compare offerings across airlines to secure the best deal on the all-in price of air travel,” said Art Sackler, Open Allies for Airfare Transparency executive director.

The group mentioned that airlines have disaggregated, or “unbundled,” fees for many services, including baggage, seating and boarding, and added that details on those fees are not published and updated continuously like the cost of the base airfare.

The group emphasised that with 50 percent or more of all airline tickets purchased via traditional travel agents or online travel sites, it is imperative that up-to-the-minute and transactable fee information be provided through every distribution channel in which an airline chooses to sell, so that businesses and consumers can fully compare prices and purchase at points of sale of their choosing.

It is being highlighted that consumers will have to wait until 2013 to compare airfares that include fees as the Department has further deferred its consumer rulemaking III. DOT’s delay has been caused by a requirement to do a cost/benefits analysis of its proposal, and the need to competitively bid out the contract for the analysis.

Although unavoidable, that delay is a real problem for air travellers, Sackler earlier this month. “It means another year or more of confusion, complexity and no meaningful way to compare across airlines and find the best deal on an all-in price.”