QF's New 1% hike on Internet Bookings

[thadocta]

Lindsay, you are beginning to sound like my mother.

Dave

 

[Jetboy]

I just want to ensure that our (great) country has more than one international airline to choose its products and services from. That is the basis of a true free market economy, where a single dominant player doesn't exist to do whatever they want - willy nilly. Anyone would think we have a one-airline communist system!

So how many countries of the size of Australia do you know that can sustain TWO international airlines?

Lets get realistic here.

 

[michaelblain]

Wow - nice exchanges above.

We all know that Australia has never and will never be able to support more than two large network airlines - compass & ansett are prime examples.

The funny thing about the surcharge is that it is simply evolution.

Remember years ago banks started charging people to use over the counter and so they encouraged you to use ATM's and EFTPOS before limiting transactions and charging excess fees, then the mid '90s with the loyalty card programs and now these are charged on an anuual basis, and then they suggested internet banking, soon they will charge for that.

QF is doing what you would expect, migrate a customer to a better distribution channel - internet bookings - then maximise the revenue from that customer.

What is wrong with that?

Have I made any sense?

 

[QF WP]

You made sense Michael - succinct and well structured arguments with which I'm sure a lot agree, but there will be some who will disagree.

 

[Jetboy]

So what's a 1% charge on a red E deal to MEL or the like? Less than a bottle of mineral water. I can't see too many people getting sweaty and hairy over that!

On a RTW F fare it will be about $120.00. Not inconsiderable but then throw in all the other taxes that go with it and what choice do you have? Pay by cheque or cash. The point is, those quick flight bookings will cost you a few extra $$ but if you're planning a big trip, chances are that you can work it out and pay by some other means.

 

[Baysider]

After recently struggling to book flights via my preferred connecting city on the Qantas website, I instead went and did it on travel.com.au. As well as being able to select my preferred connecting city, which the Qantas online booking facility doesn't permit, the final fare was about 4% lower than the lowest Qantas fare.

The moral - forget the Qantas online booking facility and the 1% credit card surcharge, and go visit travel.com.au

 

[shillard]

After recently struggling to book flights via my preferred connecting city on the Qantas website, I instead went and did it on travel.com.au. As well as being able to select my preferred connecting city, which the Qantas online booking facility doesn't permit, the final fare was about 4% lower than the lowest Qantas fare.

The moral - forget the Qantas online booking facility and the 1% credit card surcharge, and go visit travel.com.au

Presumably better value than www.travel.com which tried to convince me that US$494 was a good price for Rome-Milan return, 2 months out.

20,000 QFF points was a much better option.

 

[wleong]

I'm surprised that Qantas is on a merchant fee greater than 1%.

I blame the Reserve Bank for reviewing charges. If the Reserve Bank kept their nose out of Credit Card fees, we would not have to pay additional merchant fees on top of other charges. Hopefully other Merchants do not follow Qantas.

 

[shillard]

I'm surprised that Qantas is on a merchant fee greater than 1%.

Depends on the card - you can bet your firstborn than Amex & Diners cost QF more than 1%, and that's what a lot of their bookings would be on.

 

[dajop]

Presumably better value than www.travel.com which tried to convince me that US$494 was a good price for Rome-Milan return, 2 months out.

20,000 QFF points was a much better option.

Haven't tried travel.com, but for travel ex Australia travel.com.au offers consistently good fares if you book it yourself - just watch the fare rules as you must meet them (eg no flights to Europe via BKK from MEL unless it specifies that transfers in SYD are allowed). Also the 5% discount they offer on domestic flights (including e-deals) is good value.

Any good sites for travel originating outside AU? Travelocity.com occassionally has good options - and often some really bad ones depending on the country.

 

[thadocta]

I'm not going to even bother reading all the posts that have gone on in here in the last few days.... but one small point about the surcharge. Whilst I really don't care about paying a 1% surcharge on a $188 red e-deal to pay by CC, ironically this is the one fare that the surcharge should not apply to! If these are true "web-only" fares, the only means of payment is by CC, and the fares already should already have the credit card merchant fees built in to them.

Just noticed this post, have absolutely NFI why I missed it the first time around.

The problem here is that it needs to be an "all or nothing" approach. Whilst I agree that it is ridiculous having a CC surcharge on a booking which can only be paid for by CC, the alternative of having a surcharge on some bookings but not on others would be a PITA as far as their computers go. Much better to have it apply on everything, and remove the "CC fee" allowance on those web-only fares.

And, FWIW, net fares have come down a lot since this came in, but I suspect tha this is purely because of the decline in domestic travel, and is purely an attempt to stimulate demand.

Dave