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Published: 1/25/2012 - Updated: 3 weeks ago


Rules force airlines to disclose full ticket price

Advertised fares must include all taxes, fees

BY JON CHAVEZ
BLADE BUSINESS WRITER

New rules taking effect Thursday that require airlines to disclose the full price of an airfare are unlikely to affect frequent travelers, local travel experts said.

But consumers who don't often set foot on airplanes may discover that the notion of cheap airfare has become something of a myth in recent years, they added.

Under new federal passenger-protection rules, every airline and online booking site must include all taxes and fees in their advertised fares.

It is no longer legal to list a low-priced rate in large type, then list taxes, fuel surcharges, air terminal fees, and baggage fees in smaller print elsewhere.

"The frequent flier will not be surprised by the cost of a ticket. They already have an idea what the price will be," said Jani Miller, president and chief executive of Toledo's Central Travel agency.

"But the traveler who doesn't travel a lot, they're going to have sticker shock, I think," Ms. Miller said.

"That low price for a family of four sounds good, but even if you include one bag per person, it adds up. Just try to take eight bags with you. It's unbelievable what that adds to the price."

As an example, Ms. Miller said she booked a seat Wednesday for an upcoming flight to Orlando, Fla., a popular destination in the winter for northwest Ohioans.

The airline advertised a price of just under $200. After she got a seat assignment and paid baggage fees, the cost ballooned to $329.

"I think from a consumer point of view and an industry provider point of view, this is going to be a good thing. Pricing has become so complex, and there's nothing more frustrating than when you think you've found a good value and you find it's not," Ms. Miller added.

Sue McCloskey, director of travel services for AAA of Northwest Ohio, said airfares used to be straightforward but have grown more confusing for travelers as airlines added various fees -- for bags, seats with extra room, fuel surcharges -- to what had been included in the overall advertised price.

"When you look at base rate, that doesn't include everything and then up pops all these extra taxes and fees and customers go, 'Oh my, I wasn't budgeting for that amount,' " Ms. McCloskey said. "And baggage fees -- they're all over the place. Everybody does things a little different."

Other new rules prohibit airlines to raise ticket prices after tickets have been purchased for items like fuel cost increases. Also, customers now can hold a reservation for 24 hours without payment, and cancel that reservation without a fee or penalty if the ticket is booked a week or more in advance.

Ms. McCloskey said allowing a 24-hour booking window will allow consumers more flexibility to check other carriers and see if a lower price exists. "Things used to be that way. But airfares change so quickly, they'll even change the same day you book," she said.

Marla Lukasik, a travel agent with Kretschmer Travel Bureau in Sylvania Township, said she believes consumers will like the all-inclusive ticket prices but will adapt quickly to them and not react much. "I think most people are just going to take it in stride, but I'm not sure of that," she said.

However, Ms. Lukasik said the airlines have had a more feisty reaction to the new rules.

"Spirit Airlines is really pushing it. They've been asking me to contact my [congressional] representative to complain about it. They don't really like this at all," Ms. Lukasik said. "And the thing is, Spirit is pretty much out in the open about their fees."

But the airline, she said, has expressed concerns that its competitors will attempt to find loopholes and add fees elsewhere that are not covered by the new rules.

"They're worried about others adding on more fees and still not having the public know about it," she said.

Contact Jon Chavez at: jchavez@theblade.com or 419-724-6128.


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