Don’t you hate it when the price of your flight has doubled between ‘add to basket’ and checkout? Well, it looks like the days of that particular nasty surprise could be numbered.
According to some new research by the UK government, three quarters of transport providers are guilty of ‘drip-pricing’ — that’s adding extra (but necessary) charges to the advertised price of a journey.
To combat this frustrating phenomenon, the UK’s Department for Business and Trade will launch a public consultation to evaluate how best to crack down on companies which add so many hidden fees.
We all know the list of these hidden charges, from paying for baggage to seat reservations – they’re known as ‘ancillary products’. The ‘unbundling’ of charges for a ticket has become a major part of many airline’s business models, generating £81 billion in 2022.
Some airlines argue that by breaking down the costs that come along with a ticket, such as food and drinks or cabin baggage, actually helps consumers get cheaper fares and offers them more choice. The government has said it will consider the interests of the industry as well as customers.
According to i, EasyJet is one airline which rakes in the cash thanks to the hidden fees, with a one-third increase in their revenue per seat between October 2022 and March 2023. Meanwhile, Ryanair’s ancillary revenue has increased by 15 percent in the first quarter of this financial year.
Other British airlines which charge very high hidden fees include Wizz Air, Jet2, Tui, British Airways and Virgin Atlantic.
What’s more, even more extra charges at the airport can apply if you don’t follow the provider’s terms and conditions. An elderly British couple, Ruth and Peter Jaffe, recently made headlines after they were charged £110 by Ryanair to check in. They thought they’d done so online, but it turned out to be for the wrong leg of their journey.
Apparently, the new proposals will ensure this clarity is provided not just in the transport industry but also across entertainment and hospitality. Fake reviews and confusing labels will be evaluated in another consultation.
‘Modern-day shopping provides a great wealth of choice [but hidden fees] can make those choices increasingly confusing and leaves customers unsure about what product is right for them,’ said business minister Kevin Hollindrake to the BBC.
Similarly, earlier this year, the US government announced a clampdown on ‘junk fees’ across many industries, including the charges airlines put in place for families wanting to sit together. The call from President Biden was to adopt ‘all-in’ and upfront pricing.
With the UK consultation due to begin on Monday 11 September, this could be the start of a long path towards more transparent airfares.
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