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Fees, Fees, and More Fees

by Lux Joseph 11. July 2014

Fees for bags, fees for the lounge, and fees for in-flight beverages…the list goes on. Years ago a traveler would purchase a ticket and the sale would be complete. In today’s travel world, the sale is far from complete once you have your airline ticket. Furthermore, some recent announcements show that fees are not going anywhere. For most businesses, once fees are implemented that rarely if never go away. As a traveler, it is important to know the fees that you pay and what they are going to.

The bi-partisan budget agreement in 2013 is what is going to be affecting the restructuring of the passenger fee from TSA. Currently the fees that are in place are $2.50 per leg on a connecting flight with a one way cap of $5.00 and a roundtrip cap of $10.00. These fees will now be a flat fee of $5.60 per one way travel and $11.20 for round trip. These fees go to support t a variety of aviation security expenses.

While the aviation security fees increase may seem practical and necessary to ensure the safety of travel, those fees are not the only ones being introduced around the world. Venezuela’s largest international airport recently imposed a “breathing tax”. Maiquetia International Airport in Caracas recently installed a new air purification system and for those passengers departing out of CCS, they will have to pay a 127 bolivar per-person tax to cover this new piece of equipment. Essentially they have to pay to breathe clean air as this new system will serve to protect the health of travelers and eliminate bacterial growth. While this is beneficial to the travelers, should this expense be passed on to the travelers? Or should this be an overhead cost that the airport absorbs the expense?

Depending on the industry or arena of work, fees are applicable for different situations. Travel agents, including our in-house travel, have a fee for their services. We pay the travel agent for their expertise, knowledge, experience, and guidance. For Commercial Medical Escorts, the cost savings from using our travel agent far exceeds the fees paid. For a long time, American Express Platinum card holders were able to access the Delta Sky Lounge including one guest complimentary. However, as of recently American Express Platinum card holders have to pay a fee of $29.00 for their guest. Complimentary Sky Lounge access for members and their guests was once a benefit of being an American Express Platinum Card Holder, but now it is now another revenue opportunity for the credit card company.

When fees are implemented in any industry, it is important that the consumers see where their money is going and that it has a positive effect. Unfortunately most programs around the world that have new fees imposed are unable to effectively explain or show the benefit to the consumer whom is paying the fees. As you continue to travel, it is important to check with your airline of travel to ensure you are up to date with the most recent fees you can be expected to pay. A great resource for this information is:   http://i.slimg.com/sc/sl/graphic/u/ul/ultimate-guide-to-airline-fees_050114.pdf


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