Airlines eye credit card merchant fee's in looking for more ways to save money.
Nov 5, 2002 | 7:54 pm
#1
Original Poster
Join Date: Oct 1999
Location: Third planet from the Sun
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Airlines eye credit card merchant fee's in looking for more ways to save money.
Currently, the airlines pick up the credit card merchant fee's whenever a credit card is used to pay for travel. The airlines get a very good rate -- rougly 1.5% but with the total amount charged each year these fee's are a significant cost. There has been lots of talk about the airlines wanting to push the merchant fee's onto the travel agents. If they are able to do this(this is a big if), expect extra fee's whenver you pay for your ticket with a credit card.
Nov 5, 2002 | 10:54 pm
#3
Join Date: Jul 2002
Location: Washington, D.C.
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Well, gate agents on many airlines only accept credit cards. Credit card payments are an integral part of reservations, especially when debit memos are issued directly to customers. I don't see what you describe ever happening. Transition to EBT possible, but annoying, though.
[This message has been edited by sowalsky (edited 11-05-2002).]
[This message has been edited by sowalsky (edited 11-05-2002).]
Nov 6, 2002 | 12:33 am
#5
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Travel agents are not independent merchants either in the legal sense or a practical sense when it comes to selling airline tickets. The inventory and price are totally controlled by the airlines. Travel agents are exactly what the term says, agents of the airlines when it comes to selling tickets, not independent merchants. It is the airlines that are selling the tickets and travel agents are merely one vehicle by which that is accomplished.
Nov 6, 2002 | 12:54 am
#6
FlyerTalk Evangelist
Join Date: Mar 1999
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Having said that, the agency contract can be written such that the money flows vary depending on whether the transaction was made via credit card, cash, or other. And I think that's what the airlines are mulling about.
Of course, the last thing you'd ever want to do is pay for an airline ticket by cash -- when an airline shuts down, you want the bank holding the bag, not yourself!
Of course, the last thing you'd ever want to do is pay for an airline ticket by cash -- when an airline shuts down, you want the bank holding the bag, not yourself!
Nov 6, 2002 | 4:20 am
#7
Join Date: Mar 2002
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Consolidators already do this from my experience in the UK and Australia. They'll add 3% when paid by credit card, more for Diners or AMEX. For that matter at least one discount airline (Virgin Express) does this too.
I would have thought if the airlines wanted to do this, it would be passed on to the passenger (and therefore the agent) by way of another FEE/TAX. No idea how hard that would be to implement, but the cost ought to compare favourably with the revenue brought in.
- Simon
I would have thought if the airlines wanted to do this, it would be passed on to the passenger (and therefore the agent) by way of another FEE/TAX. No idea how hard that would be to implement, but the cost ought to compare favourably with the revenue brought in.
- Simon