Travel fees, to many, may feel like the least of their concerns. But for those who are traveling or plan to travel this summer travel fees may prove to be the next headache. There are plenty of junk fees out there to consider, even beyond the hidden costs of flying or lodging. There are transaction fees, convenience fees, resort fees — and even a beef-cost surcharge.
That’s what Alan Levine says he found on his bill when he stopped at a steakhouse in Moab, Utah, recently.
“My server claimed the beef-cost surcharge was standard,” says Levine, a retired editor from New York. “But I had ordered chicken.”
Junk fees — hidden, mandatory extras added to your final bill — have mushroomed in recent months and travelers are crying foul. The government is waging a public war against these annoying extras, but businesses still love hitting their customers with extras because fooling them into paying more is highly profitable.
How much do they love them? Consider what happened when the Department of Transportation (DOT) recently said it would start requiring airlines to quote an all-in price on airline tickets instead of separating fees for carry-on luggage and canceling or changing a reservation. In response, the airline industry sued the DOT last week, claiming it had overreached its authority.
As for latest junk fees or travel fees, it turns out there’s a reason they’re multiplying. There are also proven ways to avoid these unethical extras.
Travel Fees Crossing a Line
Fees are everywhere when you travel — and worse, companies seem completely unwilling to remove them.
* Junk fees are getting creative. Instead of a mandatory resort fee in addition to the room rate, tour operator Phyllis Stoller found a $30-per-day “urban fee” on her Los Angeles hotel bill. The fee covers a daily newspaper, phone calls and free internet. “I wasn’t paying attention when I checked out and paid it,” she says.
* The unwanted extras are often impossible to justify. How about a 3 percent transaction fee? That’s what Robert Kraus, a meeting planner from Alexandria, Va., found on his recent hotel bill in Chicago. When he asked about it, a representative told him it was to cover the cost of paying by credit card. So Kraus offered to pay with cash. “They said they couldn’t waive the fee,” he says.
* Often, the fees can’t be explained. Alan Craig, the retired CEO of an automotive accessories company, recently found a $2 surcharge at a hamburger restaurant. No one could tell him what it was for or whether it was mandatory. “I paid it, but I let them know these fees are bad for business,” he says.
Bottom line: Travelers will probably feel like they’re drowning in junk fees this summer. They’ll be kicking themselves because somewhere in the fine print or in their hotel folio, the mandatory extras were disclosed. And businesses have proved reluctant to remove the junk fees.
Why So Many Junk Fees?
Why are junk fees spreading despite government intervention? Businesses are under relentless pressure to turn a profit, and junk fees are a shortcut to higher earnings, say experts.
“Appearing to provide the lowest cost of travel is a great way to attract customers,” says Eric Chaffee, a law professor at Case Western Reserve University. “Even if it is, in fact, not true.”
That’s especially true of airlines, and one reason why the U.S. airlines are suing the federal government. The true cost of flying is far higher than the airfare you’re being quoted.
“Airlines have begun to charge for a lot more things in order to stay in business,” adds Chaffee. “Hiding these fees until later is one way of ensuring that.”
But hiding fees — basically, not disclosing the true price of your product — irritates customers. Price transparency, which is what the government wants, “is the fair thing to do,” he says.
It’s not just airlines that are being targeted by the government. A California ban on junk fees, which will outlaw many restaurant surcharges, will go into effect on July 1. And there, too, the restaurant industry is reportedly considering a lawsuit to fight the ban. (The law disappointingly allows car rental companies and car dealerships to continue charging some fees. Oh well, you can’t win ’em all.)
Bottom line: There are so many junk fees because they make businesses so much money.
How to Avoid Travel Fees
Travelers need not play victim to hidden travel fees. A few simple precautions can help.
* Always read the fine print. Junk fees are often hidden in plain sight. Businesses disclose them on their websites or in the confirmations the emails they send. They read them over the phone in monotone (they’re reading from a script) and in a way that’s utterly forgettable. Pay attention. Don’t zone out. Read the fine print.
* Fee-Proofing Plans. Join an airline loyalty program to gain protection yourself from fees such as luggage surcharges. “Obtaining status can help you save money in the long run,” says Bob Bacheler, the managing director of a medical transportation service, and a frequent traveler. But just be careful to not trade one set of fees for another. Some co-branded credit cards have high annual fees.
* Go Fee-Free. There are travel companies that have taken a stand against junk fees. For example, Southwest Airlines doesn’t charge passengers for checked or carry-on luggage. Most name-brand car rental companies (Avis, Enterprise, Hertz) quote all-in prices. The other car rental companies, not exactly. Find these fee-free businesses and patronize them. It sends a message that you want fair pricing.
Junk Fee Charges? What to Do
Those who have read the fine print, joined a loyalty program and patronized a fee-free business can still got stuck with a junk fee or two.
Levine, the editor who got slammed with a beef-cost surcharge for his chicken dinner — and was told that it was a standard charge — had a ready response.
“I told them that my standard way of dealing with thieves is to walk away,” he says. “They took the charge off the bill.”
If a business slaps on a hidden junk fee, one can do three things. First, let the company know you are unhappy with the fee and ask it to remove the charge. Second, never do business with the company again. Third, warn friends and associates about the unethical whether it’s on social media, a letter to the editor, or a review on a restaurant website. Sooner or later, businesses will receive the message.
– Christopher Elliott founded Elliott Advocacy, a nonprofit organization that helps solve consumer problems.
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