The US Department of Transportation is proposing a rule to require airlines and travel search sites to disclose all their charges upfront beyond the preliminary airfare.
This affects the US market but it could indicate the start of a trend across the globe, to give consumers a fairer deal and force airlines to no longer conceal ‘unbundled’ elements of fares.
The rule would add transparency to searching for and booking travel and would affect US airlines, foreign carriers and third parties such as online travel agencies and search sites that display fares.
“Airline passengers deserve to know the full, true cost of their flights before they buy a ticket,” says US Transportation Secretary, Pete Buttigieg. “This new proposed rule would require airlines to be transparent with customers about the fees they charge, which will help travellers make informed decisions and save money.”
The Travel Technology Association, representing brands including Expedia, Kayak, Skyscanner, Booking.com, Travelport and Amadeus, says it supports the proposed requirements. “Consumers, specifically ones that travel only once or twice a year, often are not aware of what products and services are included with their airline tickets. Airline models differ from airline to airline where some do not charge extra for bags or seats while others do, and prices can range significantly,” says Stewart Alvarez, Interim President and CEO.
“Additionally, seats can be available at the time the airline ticket is purchased by the consumer and a few days or weeks later may not be, making it difficult for a family travelling to sit together.”
The department is also proposing a requirement for airlines to enable consumers travelling with a young child to purchase seats with the fare at all points of sale. And it requires airlines to provide “useable, current and accurate information regarding baggage fees, change fees, cancellation fees and adjacent seating fees for families travelling with young children, if any, to ticket agents that sell or display the carrier’s fare and schedule information”.
White House Press Secretary, Karine Jean-Pierre, says the proposal is intended to “spur competition among airlines, expose and limit airline fees and, most importantly, save money for American families”.
The public will have 60 days to comment on this proposal before it can be finalised, but it is still unclear how long it may take to put the rules in place.
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