Fee transparency to be increased for US airlines

New rules may force carriers to give travel agents data on baggage and other fees.

Travel Insurance News - 15/07/2010

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US airlines may be forced to provide travel agents with much more information about surcharges for baggage and other items. New rules may be introduced in an effort to make it easier for consumers to shop around. Travel agents sell around sixty per cent of airline tickets, via online services and through corporate and independent travel services, but airlines supply them with little or no data on baggage and other fees, says the Government Accountability Office (GAO).

The GAO highlights the lack of fee transparency and says it sees the provision of such data to travel agents placing little burden on airlines. As a result of the GAO’s report, the Transportation Department could be driven to introduce regulations requiring airlines to supply fee information in route and fare schedules given to travel agents. US legislators are also said to be considering introducing fee-disclosure laws.

Airlines, pressured by rising costs, a global depression and several painful episodes, such as the volcanic ash cloud May and the SARS scare, are eager to find ways to boost their revenues. Many are turning to surcharges in a bid to ease the burden of rising costs or to pad their incomes. Some see these moves as back-door price increases and are demanding greater fee transparency.

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