Do airline customers have a right to know taxes and fees before buying their ticket?

The above headline appeared as the United States debate over disclosure of all fees and charges.

• “After a long day of negotiations between Senate aides and committee staffers over wording regarding when passengers will get to know what taxes and fees will be added to their airfares, there was no final agreement.” 1

Ontario travel retailers must include by law all fees, taxes, befor the advertisement begins. Travel agencies registered with the Travel Industry Council of Ontario TICO must include full disclosure of all costs covered by the advertisement including but not limited to applicable airport taxes, departure fees, arrival fees, port fees and taxes, fuel supplement fees, provincial and national taxes, applicable service fees, etc. In other words the bottom line must be quoted and not in the fine print on page 57 of the advertisement.

• the Menendez amendment mandates that travelers get to know all applicable taxes and fees before they begin the purchase process.” 2
• “shall establish rules to ensure that all consumers are able to easily and fairly compare airfares and other costs applicable to tickets for air transportation, including all taxes and fees.” 3

Currently, airlines in the U.S. can hide their fees. They are allowed to mislead its consumers until the final stage of purchase. At least one online discounter also denies the customer much knowledge about their flight purchase until after the non refundable price is paid.The Mendendez amendment will end this deception. The U.S. airline lobby is opposed to laws that will make them tell the truth up front.

The best way to insure transparency in airline ticket pricing is what TICO mandates from Ontario travel retailers.

Most veteran travellers are aware of fees involved in travel. They can be quite hefty. Airlines, consolidators and wholesalers can advertise big bold discount prices but have to include disclaimers. So you will still see many misleading headlines that leave lasting impressions on the vacationers subconscious. Ontario residents are subjected to American ads too. $39 flight to Florida doesn’t indicate $130 airport fees. Read beyond the headline.

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When “Go Travel South” went south, it left many questions on the minds of travel customers.

Foremost among these fears is what can I do if my tour operator or travel agent suddenly goes out of business?

• Travel customers who book their vacation using a credit card should contact their credit card company for a refund for services not rendered.
• Travellers who opt for travel insurance should check if the coverage includes operator default, which provides reimbursement should a tour operator or air carrier go out of business. Travel Insurance usually covers all services not refunded by other means.
• The Canadian Transportation Agency accepts complaints from consumers dissatisfied with the air portion of a travel package. You will not get a refund, but registering complaints may help someone else down the road.
• If your retailler was a registered TICO travel agency then you are covered for bankruptcy losses.

No matter how you slice it, it is darned inconvenient to have to make claims, provide proof of claims and wait for payment of claims.

If it is not discretionary money you are earmarking for your vacation then I would recommend all precautions be taken when paying for your trip. Foremost of which is to use a trusted Travel Professional. They and their past knowledge and experiences can guide you through pitfalls and around mine fields that pock mark the online travel industry. The travel agent is on your side.

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Nova Scotia-based online travel agency “Go Travel South” announced Wednesday afternoon that it is “ceasing all of its operations due to economic circumstances.”

The company founded in Ottawa in 2000 by Hugh Boyle as Go Travel Direct, changed its name to Go Travel South in 2008 and moved its operations to Halifax. Boyle also was connected to Zoom Airlines which declared bankruptcy in 2008.

• Zoom stated it was “desperately sorry” for the inconvenience to customers who were stranded in 2008.
• Go Travel claimed it was “extremely sorry” to have to cancel all the future trips.

Go Travel South sold direct flights to warm destinations including the Dominican Republic and Mexico. The charter company flies out of Ottawa using Flair Air Ltd. Flair Airlines said it would fulfill its obligations and fly back those already away on vacation. Over 2,000 Canadians in the Ottawa area are having their paid vacations shortened or cancelled without much notice. Go Travel South was advertising specials on its website right up to the closure.

To get refunds, customers are urged to contact their credit card providers. The monies will be refunded, but it could take 45 to 90 days or more to credit accounts. If you paid by cheque you are on your own.

A spokesman with the Travel Industry Council of Ontario (TICO) said because the company is based in Nova Scotia, it isn’t registered with TICO, which offers consumer protection through a compensation fund. TICO is advising travellers in this province to make sure they travel with a TICO-registered travel company.

Editor’s Comment:
These all too common stories of deception and outright fraud cause plenty of tears and anxiety for the helpless customers who can do little about their plight. Vacationers are not much different from others in situations where goods and services are not provided as paid for. Home renovators, car repair people, car salesmen, investment brokers, elected politicians and in deed anything connected to politics are but a few of the well known liars in our society. We don’t need safety nets for Canadians, we need true and honest disclosure in all interactions. More truth and less smoke and mirrors protecting the unlawful persons and practices are needed. Don’t hold your breath waiting for our leaders in government or business to respond openly and honestly.

Sources:

• 680NEWS
• CFRA NEWS TALK RADIO
• CBC
• CTV Ottawa
• Toronto Sun

There is an interesting article and subsequent comments in USA Today concerning a group of cruise passengers that could not make their cruise and they wanted a refund from the cruise company. I have found that cruise companies are the brunt of many complaints just because of the nature of their business.

• Passengers have to get to the ports on time.
  • It costs many thousands of dollars for each port delay. Ships can’t wait for the late vacationers.
  • Get travel insurance to cover this situation, especially since most Ontarians have to fly to a foreign port to cruise.
  • Allow for a day or two pre cruise time to work around weather delays etc.
• When accident or illness happens at sea, expenses can rise very fast.
  • Helicopter medical evacuations can quickly cost hundreds of thousands of dollars.
  • Get travel insurance.
  • The cruise line will make arrangements for medical assistance but the traveller has to pay.

The main thrust of the discussions following the article revolved around the cost of the cancelled trip and who would cover that loss. Some said the cruise company (Carnival) should. It’s good P.R. The terms are stated clearly and favour the cruise line. No refund. Get insurance for your travels. See my contribution to the debate below.

Most comments were sympathetic towards the families plight. Some thought it was foolish not to have taken the insurance. Insurance is a cost of doing business and of just living in a modern society. It should be considered a cost of vacationing too.

Here are few reader comments in brief from the original article:

• Buy travel insurance for your cruise
• Don’t put faith in verbal
• Consider spending a little time in the departure port before your cruise
• Everyone hates paying for insurance until the day you realize you need it
• The client made an informed decision to risk losing money
• Why should I pay because you gambled and lost?
• Travel insurance is not just for cruises
• It’s not the cruise line are cold hearted. It’s just… here it comes… wait for it… Business.
• You do know that all the cruise lines would most likely have done the same as Carnival did, don’t you?
• I think it’s totally OUTRAGEOUS for Carnival to have denied THIS particular claim
• What is outrageous is that they did NOT purchase the insurance but wanted Carnival to give them the same benefit as if they had.

My comment:

I think people can still legally drive in some regions without insurance. In some areas of the world riding a motorcycle without the insurance of a helmet is legal. Insurance insures against the unexpected. If you only used a helmet when you expected to have your head smashed into a curb through no fault of your own, which occasion would you choose?

Most people recognize the value of insurance in most life situations. How many businesses are incorporated to protect personal possessions? Most insurance is third party and it costs many people a lot of premiums to protect the inevitable from happening to a few. If Carnival or any other cruise company offered insurance as part of the price they would be using a third party and everyone’s ticket costs would go up accordingly.

Insurance is optional. If you want to save a few bucks don’t get it, but don’t whine about a catastrophe happening to you. Most people can suffer the loss of a vacation and it’s costs. If money is so tight consider going on a picnic to celebrate. Don’t forget to use your seat belts.

Can you afford the cost of repatriating an injured party member plus possibly thousands of dollars in foreign medical services until well enough to travel? Heaven forbid that an air ambulance may be involved.

When you think of insurance you tend to think of saving dollars for premiums, but you should think big. Think of the worst case scenarios and those minuscule premiums become good investments.

Incidentally, Ontario law requires that all travel agents offer, explain and advise all travellers about travel insurance. It is an optional cost and can be refused. Most agents have a standard refusal form that indicates insurance was offered and turned down.

Feel free to wade into the insurance debate.

It’s not quite as dreadful as talking about death or taxes but insurance opinions are right up there near the top of the 10 foot pole.

Source article: USA Today

Use a Travel Agent? We’ll Get You, Somehow!

In a punitive move that is wrong and greedy with no justification at all, Delta Airlines is extorting an extra fee for clients who change any ticket originally booked by a travel agent. The normal $150 change fee is squeezed from its own customers and if they used an agent to help book Delta now wrings an extra $50 fee.

Obviously Delta is trying to force its passengers to book online without help of a knowledgeable travel professional or at least to force online booking sites (Expedia, Travelocity, Orbitz, etc.) to make the changes on the tickets they issue.

Airlines have used online booking bonuses, internet only fares, etc. to lure passengers into booking for their own flights and by passing the agents. But Delta Air Lines has this new hustle. They don’t just compete, but penalize their customers who wish not to book it all by themselves. It makes no sense because Delta doesn’t pay any commission to travel agencies in the first place. Long ago, and becoming more and more widespread, some airlines began reducing or eliminating commissions to their travel agents. Some agencies have already quit dealing with airline tickets all together.

A good friend and travel professional, John R. of  Galaxsea resists selling air with his specialty sea cruises because of the hassles and little or even negative returns on time invested.

United Airlines, American Airlines already charge a Servicing Fee of $25 for voluntary changes of travel agent bookings.

Airlines are creating a system to encourage passengers to make their change with online agencies such as Expedia or ITravel2000. The personal service travel agent is caught in the middle. With no money for booking and punishing a travel agent’s customer are causing many travel professionals to ask why bother with booking air at all.

Customer service is a term the airlines use with tongue in cheek. Travel agents are the latest prey to cross the (self)destructive sights of the airline executives and bean counters.

Are Canadian airlines far behind?

This might be the time to extol the virtues of using a travel agent.
Source and more details at Consumer Traveler

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