Monday, December 01, 2008
What's With "Local Payments?"
Many adventure travel companies offer easy ways to see the world beyond the big city, fancy hotel method that most travelers are accustomed to. By venturing into smaller cities and lesser known locales, these companies can often give you a wonderful valuable time, and usually for a relatively decent price. But what's with that "local payment?"
On its surface, it sounds like a hidden charge and a way for the tour company to milk a few extra dollars out of you along the way. The truth is that this fee is actually a great way to save money, and a hallmark of a responsible travel company. Local payments stay local, and when the order of the day is putting together an out of the way location, its often the easiest way to get the money to the local hosts and hotels.
"Local payment is common in Adventure Travel," says Robert Sharp of Out Adventures. "It helps keep cash in the local communities and the costs down because the money would otherwise have to be wired over." In many cases, these far and away hotels and restaurants do not have the ability to accept credit cards or bank checks and even wire transfers can be difficult to estimate. "Group leaders pay for meals in smaller locations and keeps cash flowing in the local communities." Sharp estimates that without the local payments, the total cost of the trips would be five to ten percent higher on top of building in the local payments
These payments generally run between 10 and 15 percent of the cost of your travel package. Although it may feel like a hidden cost, in the end its only hiding good things.
On its surface, it sounds like a hidden charge and a way for the tour company to milk a few extra dollars out of you along the way. The truth is that this fee is actually a great way to save money, and a hallmark of a responsible travel company. Local payments stay local, and when the order of the day is putting together an out of the way location, its often the easiest way to get the money to the local hosts and hotels.
"Local payment is common in Adventure Travel," says Robert Sharp of Out Adventures. "It helps keep cash in the local communities and the costs down because the money would otherwise have to be wired over." In many cases, these far and away hotels and restaurants do not have the ability to accept credit cards or bank checks and even wire transfers can be difficult to estimate. "Group leaders pay for meals in smaller locations and keeps cash flowing in the local communities." Sharp estimates that without the local payments, the total cost of the trips would be five to ten percent higher on top of building in the local payments
These payments generally run between 10 and 15 percent of the cost of your travel package. Although it may feel like a hidden cost, in the end its only hiding good things.
Labels: adventure travel, fees, out adventures, travel
Thursday, November 06, 2008
Delta finally caves, charges for first checked bag.
For months, Delta stood alone. The last of the legacy carriers to allow passengers to check a bag has finally caved to peer pressure, however, and effective December 5, this policy is no more. Starting next month, any Delta passenger checking a bag will be charged $15 for that first bag checked on a domestic flight. (First Class and Elite frequent fliers are exempt.) However, the new baggage policy and other fee announcements aren't bad news for everyone.
In fact, if you normally check two bags? It's now cheaper to do so on Delta. Instead of charging a fee for each bag, Delta charged a relatively high $50 fee for the second bag checked, inconveniencing roughly 20-25% of passengers who check bags instead of everyone. By spreading the pain around, the second checked bag fee is now going to be $25 instead of $50. Net savings if you pack heavy? Ten bucks.
This does now leave just JetBlue, Southwest and AirTran as the only major domestic airlines to allow free checked bags aboard. Although AirTran may soon change their policy as well.
This doesn't seem to be chiefly motivated by fuel costs, but instead more about normalizing fees across Delta and its soon to be absorbed partner, Northwest which became a part of Delta last month. And although the headline is bad for the consumer, there are other fees which were actually reduced as well. No more $3 charge for curbside check-in, and reduced fees to use a Delta reservation agent instead of their website, dropping from $25 to $20. Also fuel surcharges on frequent flier award tickets are to get the ax as well.
In the end, its mixed news, and mostly negative news at that for the casual flier. But for the frequent flier, in the end it may actually end up a net positive, believe it or not.
In fact, if you normally check two bags? It's now cheaper to do so on Delta. Instead of charging a fee for each bag, Delta charged a relatively high $50 fee for the second bag checked, inconveniencing roughly 20-25% of passengers who check bags instead of everyone. By spreading the pain around, the second checked bag fee is now going to be $25 instead of $50. Net savings if you pack heavy? Ten bucks.
This does now leave just JetBlue, Southwest and AirTran as the only major domestic airlines to allow free checked bags aboard. Although AirTran may soon change their policy as well.
This doesn't seem to be chiefly motivated by fuel costs, but instead more about normalizing fees across Delta and its soon to be absorbed partner, Northwest which became a part of Delta last month. And although the headline is bad for the consumer, there are other fees which were actually reduced as well. No more $3 charge for curbside check-in, and reduced fees to use a Delta reservation agent instead of their website, dropping from $25 to $20. Also fuel surcharges on frequent flier award tickets are to get the ax as well.
In the end, its mixed news, and mostly negative news at that for the casual flier. But for the frequent flier, in the end it may actually end up a net positive, believe it or not.
Wednesday, February 27, 2008
US Airways: Devaluing Miles, Adding Fees
US Airways has given you another couple reasons to fly with someone else. Like United Airlines did earlier this month, the Phoenix based carrier is adding a fee of $25 to check a second bag on their flights. Unlike United, however, no consideration to the consumer was ever provided. Also, they've recently announced a big downgrade to their frequent flier program, by cutting the miles earned on shorthaul flights.
With United, if you paid the highest class of ticket, you can check a second bag for free. Elite frequent fliers also are exempt from the baggage fee and the new baggage policy only applies to domestic flights. Although this is a clear case of wanting to maximize revenue based on higher fuel costs, the conditions of the fee seems reasonable compared to how US Airways is applying it.
With US, you will pay the same fee - regardless of the ticket price. International flights? You pay the fee. Elite and first class passengers are exempt, but given the recent frequent flier enhancement on earning miles, it is getting a lot harder for road warriors to acheive that elite status by eliminating the 500 mile minimum award for flying with them. Cranky Flier has good insight on both this change and the new baggage fee.
Will other airlines follow suit? It's possible, but probably with some more customer friendly provisions attached. Given its recent enhancements, and poor baggage handling history, US Airways is quickly becoming an airline to avoid, providing Ultra Low Cost airline service at legacy prices.
With United, if you paid the highest class of ticket, you can check a second bag for free. Elite frequent fliers also are exempt from the baggage fee and the new baggage policy only applies to domestic flights. Although this is a clear case of wanting to maximize revenue based on higher fuel costs, the conditions of the fee seems reasonable compared to how US Airways is applying it.
With US, you will pay the same fee - regardless of the ticket price. International flights? You pay the fee. Elite and first class passengers are exempt, but given the recent frequent flier enhancement on earning miles, it is getting a lot harder for road warriors to acheive that elite status by eliminating the 500 mile minimum award for flying with them. Cranky Flier has good insight on both this change and the new baggage fee.
Will other airlines follow suit? It's possible, but probably with some more customer friendly provisions attached. Given its recent enhancements, and poor baggage handling history, US Airways is quickly becoming an airline to avoid, providing Ultra Low Cost airline service at legacy prices.
Labels: baggage, fees, frequent flier miles, travel, united, us airways
