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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 Dec 21, 2009
One thing you can say about the European Commission (EC) when it doesn't like something, it acts pretty quickly. With the powers of judge, jury and executioner, the EC has broader powers than those of the usual sovereign state authorities.
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 Aug 10, 2009
Finally it seems that the esteemed powers that be in Washington DC pay attention to the Professor's Blog. OK so that is what I would prefer to believe other than to think that independently the US Senior Congressman from Minnesota and Chairman of the US House of Representatives Transportation Committee came up with this idea on his own. And what is the idea? Taxes: ie That the process by which ancillary revenue is charged to the customer by the airlines was actually lowering the amount of potential revenue that the US government received for things like the FAA. (Oh yes and paying back some of its recently increased obligations). I say potential because this has not been proved.
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.
Posted Jun 19, 2009
Many suppliers add fees that go unnoticed by travelers. Airlines add baggage fees, hoteliers add resort fees, car rental companies add fuel fees, entertainment tickets add service fees….the list goes on and on. Seeking revenue boosts, suppliers create new fees.
Posted Apr 1, 2009
I heard it again yesterday, and I need to object for the record.
It seems to have become dogma for travel management companies to urge travel managers not to focus on TMC fees so they can focus on much larger travel costs more effectively. The warning is usually uttered with appropriate gravitas by senior level TMC exec in a dark suit, doing their darn-dest to convey the wisdom of age and experience. "Don't be lured by the sirens of quick fee savings," they warn ominously, "lest you be ruined on the craggy rocks of fiscal profligacy." And then the inevitable: "You realize that agency fees are only about 3 percent of total travel spend. Some folks even have pie chart Powerpoints illustrating the comparison between 97 percent and 3 percent. Wow!
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