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Posted Aug 2, 2010
A Congressional subcommittee last month noted that a non-binding IRS ruling leaves "unsettled" the question of whether ancillary airline fees for bags and add-ons should be taxed. As the National Journal's Transportation Experts blog explores the debate, the National Business Travel Association is undecided for now, executive director Mike McCormick said.
Posted Jul 20, 2010
United Airlines parent UAL Corp. posted a second quarter profit of $273 million, emerging from a long financial slump and improving on some closely watched year-over-two numbers. The company cited favorable corporate and premium booking trends and particularly strong transoceanic performance. Analysts speaking with the company's executives on a Tuesday conference call sounded generally impressed. UAL's stock closed the day up more than a buck to $22.01. Why? According to UAL executives, capacity discipline and fees.
Posted Apr 30, 2010
There are still many questions that need to be answered about airline ancillary fees. What else might the airlines charge for? Will there be a good way for managed travel programs to track them? When will TMCs be able to collect them at point of sale? And the list could go on for quite awhile from there. One thing we do know for sure, airline ancillary fees are here to stay.
Posted Apr 13, 2010
Mergers in the Air...
Goodness, gracious! We have a lot to talk about this week. United and US Airways have announced they are in serious merger discussions. I honestly think my chances of winning the Masters are greater than the chances of this merger actually happening. The list of reasons why United and US Air cannot pull off this merger is longer than my arm, and I have long arms:
Posted Feb 19, 2010
The rental car companies are in a big hurry to start charging you for no shows. The no show rate on rental cars is now approaching 25 percent. We have heard of travelers that make several car reservations with several different car companies and then rent from the company that has the first shuttle bus to appear.
While this practice saves time it makes the car companies crazy. Our guess is a no show fee will appear sometime this year and it looks like the opening no show charge will be between $5 and $15.
Posted Feb 10, 2010
Beginning May 1st American Airlines will charge coach passengers $8 for a blanket and inflatable pillow on domestic flights that last longer than two hours. You will have to bring your own warmth and headrest for flights less than two hours if you are in coach. But wait there is more. If you purchase American's pillow and blanket, American will throw in a coupon for $10 off your next purchase of $30 or more at Bed, Bath & Beyond. Goodness, Gracious!
Posted Jan 13, 2010
So I've been asking some more nosy questions about how well companies are managing travel. This time we are looking at airline fees that have been unbundled from base fares. The corporate travel industry is struggling to deal with them in a way that is a) standardized for data collection and tracking but b) individualized for airlines that may want to merchandise their services in unique ways. Travel managers and their companies are struggling to deal with these fees, period.
Posted Nov 24, 2009
With all the discussion over ancillary fees there seems to be one that is missing the attention of corporate travel professionals responsible for a global program. In the recent edition of The Wire…from AirPlus, it is clear that travel industry insiders lack awareness of the U.S. Travel Promotion Act--even in countries that stand to be most affected by possible new fees.
Posted Jul 27, 2009
Today, United Airlines announced they were dropping last-minute fees for Mileage Plus frequent- flyer award ticket redemption. Yes, this is not a misprint but a case of an airline actually dropping an irksome fee. Currently, non-elite Mileage Plus members are charged $100 to redeem within six days of travel and $75 within seven to twenty days.
Posted Jun 27, 2009
Why do some suppliers hide mark up or management fees? My role has taken a forensic twist this week as I am on a quest to uncover actual prices, and mark up fees, at every level for our clients.
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