The Biden-Harris administration has just announced the adoption of a non-reversible rule to protect passengers, effective in July. The administration is targeting surprise charges applied by airlines when purchasing tickets. Admittedly, theBiden administration does not go so far as to call these charges into question. It does, however, require airlines and ticket agencies to inform consumers of the fees charged from the outset. For example, a first or second piece of checked baggage, hand baggage or fees applied when cancelling or changing a reservation.
Consumers will be able to avoid unnecessary or unexpected costs which can add considerably to the price of a ticket that, at first sight, seemed cheaper. The Biden administration estimates that consumers should save more than 500 million dollars each year. " Airlines should compete for passengers, not for who can charge the most surprise fees." said Pete Buttigieg, US Secretary of Transportation.
New rules from the Department for Transport require airlines to be transparent with their customers. In recent years, additional charges have become a growing source of revenue for airlines. Statistics from the Bureau of Transportation prove that airline revenues from baggage fees increased by more than 30 % between 2018 and 2022. At the same time, operating revenues increased by less than 15% during the same period. The DOT also believes that the complexity of surcharges is increasingly confusing passengers.
More details provided to passengers
The Transport Secretariat already requires airlines and travel agencies to quote net fares only. This means that the price displayed includes all mandatory charges imposed by the carrier, but also by the government. For the first time, the new rule requires airlines and travel agencies to disclose additional service charges, which are essential to consumers' purchasing decisions, at the same time as the total price of the ticket.
Among the details that airlines will have to provide are the fare differences applied according to the weight or size of the baggage. Additional charges for changes to reservations must also be detailed. Airlines will also have to point out that every ticket purchased includes an allocated seat. So there is no no obligation to purchase a seat reservation. Finally, they must provide information on all standard charges and charges specific to passengers. This also includes any discounts for passengers on frequent flyer programmes.
