No more 'free' flight sales

[Dave Noble]

....
The reforms are in addition to amendments to the Trade Practices Act, effective from this Tuesday, which outlaw so-called component pricing, where taxes and charges are either hidden or "asterisked".

This means an air fare sale launched in Australia by Tiger Airways as late as this month, advertising "free" air fares that required the payment of additional taxes and charges, will be illegal from this week.

Full article at No more 'free flights' air fare sales

Dave

 

[harvyk]

All I can say is it's about time... This should have happened years ago...
The thing I really love is the fact that car dealers will also be included under the laws, the idea that until now someone could offer a product or service for sale, and yet we the consumer had no hope of ever purchasing the product \ service for that price because of hidden "taxes" and "charges"

 

[Mal]

And this is one of the reasons Virgin Blue has scurried to get a "direct debit" (of sorts) system in place for their booking engine as a substitute for people paying credit card fees.

Also, BestFlights has tightened up their advertising as well in preparation for these changes.

Overall I think they will be good for consumers.

 

[Slats7]

About time!

 

[Travel Guru]

Agreed, good move both for the public and agents.

TG

 

[Evan]

Agreed, good move both for the public and agents.

TG

May even help agents as there is then less inventive for an airline to try and move as much of the fare to a tax component and as such potential for more commission is higher base fares. Not something i expect anybody to notice as it would happen over a longer period of time i would guess.

 

[odysseus]

Good to hear, as long as it followed and enforced, unlike last time that air fares were meant to be fully inclusive.

 

[Saab34]

So does that mean that Tiger could use "TAXES ONLY" or "JUST PAY TAXES" etc.. or something along those lines..? It sounds just as effective as "Free Seats" did...and its still the same fare price in the end..:idea:

 

[bambbbam2]

When they say 'all-inclusive' pricing, I presume the credit-card fee rort will still be maintained?

 

[Mal]

When they say 'all-inclusive' pricing, I presume the credit-card fee rort will still be maintained?

Yep, where an alternative option exists for payment without a fee. Eg, Qantas B-Pay, Jetstar bank Transfer or Virgin Blue's new POLi implementation, then fares can be advertised at a non-credit card fee inclusive price.

 

[Dave Noble]

When they say 'all-inclusive' pricing, I presume the credit-card fee rort will still be maintained?

It isn't a rort and is quite different. The Credit Card fee only has to be paid if payment is made by credit card and can be avoided by not using a credit card

Dave

 

[Cabbage]

It isn't a rort and is quite different. The Credit Card fee only has to be paid if payment is made by credit card and can be avoided by not using a credit card

Dave

It is a rort if you fly Tiger or Virgin, where no CC alternative currently exists

 

[bambbbam2]

It's also a rort because it doesn't reflect the actual cost of providing the merchant facility.

A $6.60 charge on a <$100 fare IS extortion.

 

[Dave Noble]

It is a rort if you fly Tiger or Virgin, where no CC alternative currently exists

I would agree that if there is no other method of payment then that is bad and hopefully will require that it be incorporated in published fare with new rules

Dave

 

[Dave Noble]

It's also a rort because it doesn't reflect the actual cost of providing the merchant facility.

A $6.60 charge on a <$100 fare IS extortion.

I wouldn't call it a trick or fraud since it is easily circumvented in most cases

Dave

 

[Saab34]

It is a rort if you fly Tiger or Virgin, where no CC alternative currently exists

Tiger is removing the $5 fee from Today for payments made by debit cards. All Credit cards still incurr the fee.

Virgin seem to have Bank Transfer now, so it seems that all domestic carriers offer a $0 fee alternative.

 

[DTM1]

It is a rort if you fly Tiger or Virgin, where no CC alternative currently exists

The law requires the publication of a single price (defined as the minimum quantifiable consideration) that a consumer must pay.

This means, that if any charge is unavoidable (in every circumstance), then it must be included in the single published price, as long as it is quantifiable.

If the charge is avoidable (ie you can pay by debit card and not have to pay a fee), then it need not be included, even if most people pay by cc.

 

[Commuter]

It's also a rort because it doesn't reflect the actual cost of providing the merchant facility.

A $6.60 charge on a <$100 fare IS extortion.

I wouldn't go quite far to call it extortion but it is disproportionately and inappropriately high IMHO, and it is impossible to avoid if booking a last minute ticket, or if you are not an Australian bank account holder.

I personally think CC fees should be built into the ticket price, and so does the fuel surcharge. The only items that I believe should not be included in the ticket price is taxes and externally imposed fees that are charged per passenger/ticket.

 

[Flashback]

I wouldn't go quite far to call it extortion but it is disproportionately and inappropriately high IMHO, and it is impossible to avoid if booking a last minute ticket, or if you are not an Australian bank account holder.

I personally think CC fees should be built into the ticket price, and so does the fuel surcharge. The only items that I believe should not be included in the ticket price is taxes and externally imposed fees that are charged per passenger/ticket.

In the reverse though, on a $2,000 ticket the % is quite low.

 

[Commuter]

In the reverse though, on a $2,000 ticket the % is quite low.

Most $2,000 tickets would be for an international flight, which incur $25 fee, I believe - which, to me, is not that low.

At least Qantas doesn't charge CC fees 'per person per sector', for which I am thankful.