Airlines are constantly looking for new ways to make money, but their favorite trick is imposing a surcharge without us even knowing it. Allegiant Air, with its sneaky $8.50 “convenience fee” for flights booked on its site, comes to mind. But now two major carriers, US Airways and Continental Airlines, have joined the fun, according to to a respected travel analyst.
Both carriers now have what amounts to a hidden booking fee for tickets bought through their Web sites, according to Henry Harteveldt at Forrester Research.
Go price out a domestic ticket for any of their routes except the northeast (Boston-NY-Washington) shuttles, contrast the total price with Expedia, Orbitz, etc. The US Airways/Continental price will be equal to Expedia, maybe $1 less than Orbitz, and either the same as or $2 less than Travelocity.
Then, go price the same itinerary at Priceline using the retail channel, not name your own price. The ticket will likely be $5 less.
What’s going on?
US Airways and Continental have implemented “fuel surcharges” of $4.65. Why that number? Because when you tack on the federal excise tax, it equals $5. The reason for doing this as a fuel surcharge is that it doesn’t affect the base price listed when doing low-fare searches on metasearch sites like Kayak.
Why are they doing this? Because the airlines feel that if the online travel agencies can collect the $5 service fee, why shouldn’t they – the airlines – get more money too? Now, forget the fact that the agency isn’t paid a “commission” (though the online travel agencies all get some form of remuneration to sell air tickets.
Harteveldt’s conclusion: “Airline sites can no longer be viewed as the absolute best place to buy a ticket.”
If these fees stick — and it’s still to early to tell if they will — I think they could easily spread to other parts of the industry, including hotels, car rental companies and cruises.
This is fascinating. These companies have spent years and perhaps tens of millions of dollars convincing the traveling public that their sites are the best places to buy their products.
Are they about to cash in on our collective ignorance?
Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.
Elliott is consumer advocate 
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