Regulations

Business Travel Group Insists On Full Disclosure Of Airline Fees

Posted on October 1, 2014

GBTA executive director Michael McCormick (R) interviewed United Airlines CEO Jeffrey Smisek at the 2011 and 2014 GBTA Conventions.
GBTA executive director Michael McCormick (R) interviewed United Airlines CEO Jeffrey Smisek at the 2011 and 2014 GBTA Conventions.

ALEXANDRIA, Va. – The Global Business Travel Association (GBTA) called on the U.S. Department of Transportation (DOT) on Sept. 30 to move quickly to require all airlines to increase their transparency and disclose all baggage and other ancillary fees.

According to comments filed by GTBA as part of the DOT’s Proposed Rulemaking on ancillary fees, travelers and booking agents, as well as corporate travel managers and buyers, must be able to understand the total cost of travel before purchasing an airline ticket.

“The lack of consistency and transparency in the pricing and application of ancillary fees in all categories of travel, but especially for air travel, is a major challenge for business travel managers,” said GBTA Executive Director and COO Michael W. McCormick.  

GBTA, the voice of the global business travel industry, noted that with consolidation of the airline industry, airlines have accelerated the practice of unbundling services that were traditionally part of an airline ticket, such as baggage fees. These ancillary fees represent a growing source of revenue: baggage fees rose from $464 million in 2007 to $3.35 billion in 2013 and reservation change fees rose from $915 million in 2007 to $2.8 billion in 2013.

A recent GBTA study examining the transparency and trackability of ancillary fees found that only 21% of travel managers are tracking ancillary fees, such as baggage fees, although those fees now account for more than eight percent of total travel spend.  

“With better insight into how these fees work, travel managers can make more informed choices,” McCormick explained to the DOT. “Business travelers and their companies must be presented with an accurate and trackable view of fares and fees.”

Official text of GBTA comments here

View comments or post a comment on this story. (0 Comments)

More News

Pennsylvania Unveils Guidelines For Driverless Cars

The state’s variable climate and geography make it an ideal testing ground for self-driving vehicles.

Classifying Uber's Business Model: A Complicated Affair

Governments have every right to regulate a digital platform that arranges rides and provides work for its citizens.

Industry Leaders Adjust Political Agenda For Trump Era

The NLA is sizing up a post-Nov. 8 legislative and regulatory scene that could yield breakthroughs as well as new unknowns.

Mass. TNC Drivers Face Background Checks Sooner

The state will conduct Criminal Offender Record Information and Sex Offender Registry Information background checks and consult motor vehicles records.

What Will Trump's Transportation Pick Mean For TNCs?

Department of Transportation Secretary nominee Elaine Chao has shown friendliness to the gig economy.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blogs

See More

See More

See More

See More

LCT Store

LCT Magazine - December 2016 $12.95 GLOBAL/INTERNATIONAL ISSUE COVER STORY: * The Coolest Operators on the Planet * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close