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Outrageous change fee

July 5, 2002

Q: I booked a one-way ticket on Continental Airlines from Newark to Atlanta recently. My original ticket cost about $80. However, I later learned I had to leave a day earlier. I thought I could just stand by for a flight but was told no. I then tried to change my ticket. But the $100 change fee makes any ticket whose original price is under $100 worthless.

In order to get another ticket, I would have had to pay $60 – the difference between the tickets – plus the $100 fee. In other words, it would be cheaper for me to buy another ticket. Which is what I did (on Delta – the time was better).

I like Continental, especially the easy access to the terminal in Newark. However, a dumb rule like this makes me skeptical. Why should you have a change fee that’s more than the value of the ticket?

– Norman Oder

A: Continental feels your pain, but it also feels its own pain (last quarter it suffered a net loss of $166 million). The airline offered to let you use the value of your one-way ticket towards the purchase of another ticket, but it won’t budge on the change fee.

I encountered a similar problem on a recent Continental flight from Miami to Newark. I wanted to switch to a flight that left a few hours earlier, but the gate agent said I’d have to shell out a $100 change fee, which was almost as much as the ticket had cost. She said since Sept. 11, the airline had quietly tightened its change policies. Not only is the airline clamping down on last-minute changes at the gate, but if you miss your flight, you could get stuck with a change fee, too.

Does the policy make sense? From an airline’s point of view it does. More fees mean more money. Revenues derived from change fees and other surcharges accounted for $445 million last year (the same as the previous year) according to Continental. But from a passenger’s point of view, this is a silly policy that can only be seen as a ploy to squeeze more money out of you. I don’t think this is what CEO Gordon Bethune had in mind when he touted Continental’s “commitment to great customer service.” But I could be wrong.

It’s no small irony that an airline can delay or cancel a flight with little or no remuneration to the passenger. But if you’re late for a flight, you could get charged a change fee that might be more than the value of your ticket. There is something very wrong with this picture – and very unfair.

You did the right thing by switching carriers. The way Continental enforces its change policy is easily the most customer-hostile in the business, and a completely inappropriate way of thanking you for your business.

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.

4 comments

  • Tonya

    If you want to hear about an outrageous change fee, you should check out Southwest Airlines. I purchased a round trip ticket for $202 to travel on 2/14 from Chicago to Houston, TX leaving out at 8:00 pm. I got off work early and got to the airport in time to make the 2:15pm flight. Though there were at least a dozen empty seats on the flight, SouthWest told me that I had to pay an additional $273 to fly out six hours early. I have the receipt to prove it. $25, $50 or even $100 would have been preferable to $273!

  • Yu Shan

    Regards to Tonya above a year late. Southwest to their credit doesn’t charge a change fee. What you paid was their price difference between a walk up fare and what you paid. In all fairness Southwest never charged you a the $274 to change the ticket. They charged you $274 the “difference” in fare because they don’t do standbys for earlier flights unless there is a delay.

  • chris

    I find that hard to believe from southwest,…i changed my ticket the night before i was supposed to be leaving for a few days later and guess what? it cost me only $7. YES 7,…seven,…7 bucks thats it! i’ve alwasy flown southwest except this month i flew continental to see how they are and i wanted to change a flight to a week later and the ticket cost 120,…they wanted to charge me 150 for a change fee, and another 159 for the NEW ticket price. ARE YOU SERIOUS????????? said the hell with it and will never fly continental again! you can count on that!!!!

  • HS

    The comments here prove one thing. That many people who complain about something don’t understand what it is that they are complaining about. You should consider that before condemning a business practice. As in the above example, one person complained about paying $273 to switch flights, when the policy was to simply pay the full fare because they don’t allow standby. Just like the person who was surprised at paying $7 for the change. The amount of “cost” for a change on Southwest is based on the originally purchased ticket and the newly purchased ticket. Period. There are no fees. I’m not defending Continental, but at least the fee is straightforward. Could they be more flexible? Probably. But to condemn them for sticking to their rules is wrong. Otherwise, you’d better be happy when an airline treats people differently “just because they feel like it” as opposed to treating everyone the same.

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