Consumer Groups Demand Common-Sense Reform as Airline Fees Reach Record High

The DOT heard consumer protection groups’ recommendations on fees U.S. airlines have for baggage, ticket changes and cancellations, and more.

The Department of Transportation’s (DOT) Advisory Committee for Aviation Consumer Protection (ACACP) held a meeting Tuesday to discuss ever-changing airlines’ baggage policies, change and cancellation fees and resort fee disclosure.

The ACACP, an advisory body to the DOT, evaluates the department’s aviation consumer protection programs and makes recommendations for new programs as needed. The ACACP will submit a summary of its final recommendations to DOT Secretary Anthony Foxx by September 15.

Consumer advocacy group the National Consumers League (NCL), called for common-sense reforms, including a requirement that cancellation and change fees be refunded if vacated seats are able to be resold. The non-profit also asked the DOT to require airlines to prominently disclose cancellation and change fees across all sales channels, including airline websites and online travel agents.

In 2014, the airline industry garnered $3 billion in revenue from cancellation and change fees alone.

“These fees are a cash cow for the airline industry,” said NCL Vice President John Breyault in a press release. “Consumers often can’t predict when they’ll need to change their itinerary. If the airlines are going to sock them with $200 change fees, they can at least be upfront about the fact that they’re going to do it.”

Breyault also asked the DOT to consider mandatory hotel resort fees, which hotels charge consumers for items such as in-room coffee, newspapers and local phone and fax service.

The NCL recommended that the DOT require mandatory hotel resort fees to be included with the rates for bundled airfare and hotel packages so consumers can compare rates and make informed, budget-conscious decisions.

“Consumers cannot make informed buying decisions without clear and accurate disclosure of important fees and surcharges before they reach the point of sale,” said Breyault. “This is even more important in the market for airfares and hotels, where consumers often find themselves captive in situations where it’s difficult to fight unfair fees.”

David Berg, general counsel for airline-industry trade group Airlines for America said fees benefit both consumers and airlines because travelers get cheaper tickets and airlines are assured that more seats are filled with nonrefundable tickets, USA Today reported.

“They did not just spring into existence,” said Berg, who is also a member of the advisory panel. “They are grounded in the economics of running an airline efficiently.”

The ACACP, mandated by the Federal Aviation Administration’s Modernization and Reform Act, consists of four members – Kathleen G. Kane, Attorney General for Pennsylvania and Chair of the Committee; Berg, Senior Vice President and General Counsel at Airlines for America; Deborah Ale-Flint, Director of Aviation at Oakland International Airport; and Charles Leocha, Chairman and Founder of Travelers United.

Tuesday’s meeting can be watched in its entirety here.

[Photo: iStock]