No more 'free' flight sales

[oz_mark]

Looking at rental car websites, looks like the ACCC has some work to do there, although some are better than others.

 

[Dave Noble]

The ACCC promises to come down hard on breaches of new travel consumer laws, writes Clive Dorman.

The travel industry has been warned there will be no grace period for changes to the Trade Practices Act to outlaw component pricing, by which a supplier advertises a price that doesn't include additional taxes and charges.

The changes were enacted last week but had been in the pipeline for three years, since they were first proposed by the previous federal government.

Two industries travel and automobiles were singled out as the biggest users of component pricing in Australia, even though three of the four domestic airlines have voluntarily observed a pricing-transparency code for most of the past three years.

Now, the agency that will enforce the new legislative changes, the Australian Competition and Consumer Commission, says no mercy will be shown to lawbreakers.

"It's not as if it has crept up on people without notice, without warning," says ACCC chairman Graeme Samuel.

ACCC to come down hard on breaches of travel consumer law

 

[oz_mark]

Good. Hopefully that means when a car dealer advertises a price, it is a driveaway price. Includes dealer delivery etc etc.

 

[odysseus]

Good. Hopefully that means when a car dealer advertises a price, it is a driveaway price. Includes dealer delivery etc etc.

Yes, there was a separate report a couple of days back that it's forced most manufacturers to remove RRP pricing entirely. For most, it's not on their web site, and not in press releases; only the wording to "Refer to dealer." That's actually a step backwards!

The issue is that different dealers have different delivery pricing, so it makes it impossible to give a set price; some are looking at postcode entry, but of course that's unreliable, as well as arguably overkill for what this should be about.

 

[oz_mark]

Yes, there was a separate report a couple of days back that it's forced most manufacturers to remove RRP pricing entirely. For most, it's not on their web site, and not in press releases; only the wording to "Refer to dealer." That's actually a step backwards!

The issue is that different dealers have different delivery pricing, so it makes it impossible to give a set price; some are looking at postcode entry, but of course that's unreliable, as well as arguably overkill for what this should be about.

I don't buy this. Manufacturers of any product are not allowed to dicate to retailers the price that something is sold at. Many products manufacturers have RRP prices on their website. These don't bind retailers to these prices.

I think the manufacturers are just playing games and trying to protect vested interests in the industry. The whole 'dealer delivery' thing is a sham.

However, there may be an issue giving an Australia wide RRP, due to the differences in stamp duty, insurance etc, but doesn't seem to have stopped them advertising drive-away, no more to pay prices in the past.
Anyway, the changes have been coming a while, and most airlines in Australia were already complying (aside from the CC fee, to which they have found a way around!)

Now if we can just get all the rental car companies in line, where the price on the first page is the price that includes all the stuff you can't avoid when renting a car.

 

[Dave Noble]

The issue is that different dealers have different delivery pricing, so it makes it impossible to give a set price; some are looking at postcode entry, but of course that's unreliable, as well as arguably overkill for what this should be about.

I disagree. It is only thru their business model that they have tried to mask the true cost of a car in advertising by excluding that which should be included. Other industries can manage to handle the costs of delivering goods to their outlets quite happily

I think it is good that if tv adverts can mo longer have microprint on the screen masking the $19,999 price that they put in big print is not really the price

Dave

 

[Dave Noble]

Now if we can just get all the rental car companies in line, where the price on the first page is the price that includes all the stuff you can't avoid when renting a car.

I believe that this is coming too. In fact , looking at the hertz site now, if I select a car , it tells me the full price on the screen

Dave

 

[odysseus]

I disagree.

I'm not sure what you're disagreeing with.

As for the pricing, other industries do incorporate their pricing within the cost, but other industries which deal in the retail sector also sell much smaller items - delivery would not make up as much of the cost of your loaf of bread as it does cost to deliver a car.

Is it used as a form of padding by dealers? Most likely, but then you can also negotiate with them more readily on the cost than you can with other items too, so they take a bit more off here, then try to recover a bit there. As for it being padding, it can also be said the same thing applies even to the flat credit card fee charged by the airline.

None of this is saying that I like it, but it's still a reality of the current model (just like tipping in another context). I suspect they find it easier to try to work around the limitations with advertising pricing than to entirely re-cast the sales model they have in place with dealers.

 

[serfty]

... As for it being padding, it can also be said the same thing applies even to the flat credit card fee charged by the airline ...

Not at all, see earlier posts in this thread.

The airlines have had to change the way they advertise things in relation to CC fees. If there is no other option but to pay by CC and incur a fee - this fee will need to be included in the advertised price.

So, in this context, can one avoid the "Dealer Delivery Fee"? Perhaps by bpay rather than loan? Or cash? (probable more true than it seems).

 

[Dave Noble]

Not at all, see earlier posts in this thread.

The airlines have had to change the way they advertise things in relation to CC fees. If there is no other option but to pay by CC and incur a fee - this fee will need to be included in the advertised price.

So, in this context, can one avoid the "Dealer Delivery Fee"? Perhaps by bpay rather than loan? Or cash? (probable more true than it seems).

I wondered about Qantas and payments for travel within 7 days. I don't know how new a development it is, maybe people will have seen it for ages, but it is now possible to pay online on the Qantas site with debit mastercard; just need them to add debit visa and easy for many people to avoid the credit card fees without having to do a separate bpay transaction


Dave

 

[Dave Noble]

I'm not sure what you're disagreeing with.

As for the pricing, other industries do incorporate their pricing within the cost, but other industries which deal in the retail sector also sell much smaller items - delivery would not make up as much of the cost of your loaf of bread as it does cost to deliver a car.

Is it used as a form of padding by dealers? Most likely, but then you can also negotiate with them more readily on the cost than you can with other items too, so they take a bit more off here, then try to recover a bit there. As for it being padding, it can also be said the same thing applies even to the flat credit card fee charged by the airline.

I disagree with it being acceptable to class delivery of the product to the retailer being an additional cost. buying online maybe, but not at a shop
The other advertising scam that I'd like to see removed is adverts on tv that show a high spec model of car but then try advertsing the price for a base level car , or even worse, a model that isn't even available for sale in Australia

It would be good to see the car sales industry cleaned up to act like they are operating in a 1st world country and not a market stall in a souk

Dave

 

[bambbbam2]

Looks like the Aussie AA page has not yet been updated - still showing fares without taxes

American Airlines | Special Offers | AA.com Australia

 

[oz_mark]

The other advertising scam that I'd like to see removed is adverts on tv that show a high spec model of car but then try advertsing the price for a base level car , or even worse, a model that isn't even available for sale in Australia

Ahh, the old (in tiny, slightly blurred lettering) '*Overseas model shown' trick.

 

[serfty]

I wondered about Qantas and payments for travel within 7 days. I don't know how new a development it is, maybe people will have seen it for ages, but it is now possible to pay online on the Qantas site with debit mastercard; just need them to add debit visa and easy for many people to avoid the credit card fees without having to do a separate bpay transaction

Dave

I only noticed the debit card option in the last fortnight when I needed to book a flight at short notice of 5 days*.

At less then 7 days, the bPay option disappears to be replaced with the debit card option.

*Short notice for me , most of my flights are booked 3 months or more out.

 

[Dave Noble]

Ahh, the old (in tiny, slightly blurred lettering) '*Overseas model shown' trick.

Overseas model that isn't available or showing a top of range model but giving price of the bargain basement model

Dave

 

[Flashback]

Overseas model that isn't available or showing a top of range model but giving price of the bargain basement model

Dave

Agree.... I think it's absolute rubbish that they do that.

 

[kamchatsky]

What about Virgin? Don't they still have the $3 fee for credit card payment?

 

[oz_mark]

They are supposed to have a payment solution using Poli, but it doesn't seem to be working.

 

[odysseus]

The airlines have had to change the way they advertise things in relation to CC fees. If there is no other option but to pay by CC and incur a fee - this fee will need to be included in the advertised price.

Yes, but it's a lot simpler when it's your own fee, and has some degree of standardisation at that. It's another thing entirely when it's a fee that's paid to your agents/franchisors, and varies based on them, hence the suggestion that they may resort to a postcode calculator to work out what the cost will be in your location.

 

[serfty]

Yes, but it's a lot simpler when it's your own fee, and has some degree of standardisation at that. It's another thing entirely when it's a fee that's paid to your agents/franchisors, and varies based on them, hence the suggestion that they may resort to a postcode calculator to work out what the cost will be in your location.

... either that or advertise the display price for the product in the region being advertised.