Airline fees -- and passengers' ire with them -- didn't originate last year. But they certainly came into their own.
What the airline industry terms "ancillary revenue" became a critical source of monetary lifeblood for many carriers in 2012. Thus what a leading industry analyst defines as income "generated by additional activities that yield revenue for airlines beyond the core movement of customers from A to B" means that some airlines can't live without those fees now.
MORE: Which airline fees are worth the extra money?
2013: Five trends to look for in travel this year
There's little surprise that in 2012 we saw more types of airline fees, increases in individual fees, and more airlines combining fees into "bundled" packages. All this ancillary revenue has generated additional problems with airline-pricing transparency for consumers. This is why more attention is being paid to airline fees in Washington, prompting some travel organizations recently to petition the White House to ensure the U.S. Department of Transportation impose rules so "consumers can see, compare and buy the complete air travel product." Airlines have resisted these efforts, claiming the costs of integrating complex booking systems with third-party partners would be prohibitive.
And as I pointed last year with "Travel's f-word: Fees obscure bottom-line prices," other sectors of the travel industry are emulating airlines, as fees also have become ubiquitous with rental cars, hotels and cruises.
Truth in numbers
Think you're well traveled enough to consider yourself an expert on airline fees? Put your knowledge to the test with our airline fee quiz:
1) The Amadeus Worldwide Estimate of Ancillary Revenue projects that for airlines globally in 2012, such income will total:
A) $6.1 billion
B) $16.1 billion
C) $26.1 billion
D) $36.1 billion
2) This represents a significant increase in ancillary revenue since 2008, when such income totaled:
A) $2.5 million
B) $25 million
C) $250 million
D) $2.5 billion
3) The marketing firm IdeaWorks tallied 50 airlines worldwide and found the highest ancillary percentage of any carrier's total revenues—33.1%—for the latest full year was generated by a U.S.-based airline. That means for every $3 earned, $1 came from fees. Which airline topped the list?
A) JetBlue
B) Spirit
C) Virgin America
D) United
4) Non-Premier members of MileagePlus can make same-day flight changes on United Airlines for:
A) no charge
B) $25
C) $50
D) $75
5) The fee for your carry-on bag—that's right, your carry-on bag—if you choose to pay at the airport counter or kiosk when flying on Spirit Air totals:
A) $50
B) $40
C) $30
D) $20
6) Oberto Beef Jerky can be purchased onboard Alaska Air for:
A) $3
B) $4
C) $5
D) $6
7) In 2009, Continental Airlines announced a switch to "cashless cabins" and began requiring charge cards for all in-flight purchases in order to make it ________ for customers.
A) faster
B) safer
C) more secure
D) more convenient
8) The fee to have your itinerary mailed to you by Virgin America totals:
A) $20
B) $12
C) $10
D) $2
9) On US Airways, one small domestic dog, cat or bird can travel in the cabin for:
A) $75 each way
B) $75 round-trip
C) $125 each way
D) $125 round-trip
10) The Choice Essential package on American Airlines includes no change fee, one checked bag and Group 1 boarding for:
A) $38 round-trip
B) $48 round-trip
C) $58 round-trip
D) $68 round-trip
11) Finally, some good news. JetBlue and Southwest are different than all other domestic airlines when it comes to fees for checked baggage because:
A) first bags are free on JetBlue and Southwest
B) first and second bags are free on JetBlue and first bags are free on Southwest
C) first bags are free on JetBlue and first and second bags are free on Southwest
D) first and second bags are free on JetBlue and Southwest
12) Although JetBlue and Southwest are not alone in bucking certain aspects of the fee trend, you have to search for other good news where you can find it. In fact, back in October SmarterTravel.com provided a guide to "Eight airline perks that are still free" in this section, which included the tidbit that on some chilly domestic flights a free blanket is provided by:
A) Hawaiian
B) JetBlue
C) US Airways
D) All of the above
ANSWERS (with citations in links)
1) D; 2) D; 3) B; 4) D; 5) A; 6) D; 7) D; 8) A; 9) C; 10) D; 11) C (jetBlue | Southwest); 12) A
How'd you do? If you're not as savvy about airline fees as you thought, keep the following in mind:
- Always make sure you're clear on the cost of all airline services and products—before you book, and no matter how you book.
- If you're unsure about the total cost of add-on fees and you're concerned about the bottom line, contact the airline directly (bearing in mind that such communication itself can generate fees).
- Always book flights with a charge card, to be protected under the Fair Credit Billing Act.
MORE: Travelers hit with fees every step of the trip
MORE: What airline fees are coming next?
MORE: Read previous columns
Bill McGee, a contributing editor to Consumer Reports and the former editor of Consumer Reports Travel Letter, is an FAA-licensed aircraft dispatcher who worked in airline operations and management for several years. Tell him what you think of his latest column by sending him an e-mail at USATODAY.com at travel@usatoday.com. Include your name, hometown and daytime phone number, and he may use your feedback in a future column.
Source: http://www.news.theusalinks.com/2013/01/09/airline-fee-quiz-theyre-even-worse-than-you-think/
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