Many of
us probably know someone who has flown on one of the ‘ultra-low-cost’ airlines
infamous for their add-on fees. But the major airlines have been plenty busy
establishing their own new fees as well. Many travelers want to know, ‘how bad
is it going to get?’ They wouldn’t make us swipe our credit card to use the aft
lavatory...would they?
We
can’t say for sure it will come to that, but we can reasonably predict fees are
the new norm; they’re here to stay. And they will only increase in cost and
quantity.
We
think the fee explosion is just a symptom of the larger problem in the industry
right now. The airline industry model is antiquated. The airlines need fees
because they aren’t making money selling flights.
That
may seem hard to believe for anyone who has clicked the purchase button for a
flight lately, but for the most part, it’s true. Airlines’ costs have risen and
competition has done enough to keep them from being able to raise their fares
to keep up. As if that weren’t enough to make them look for new revenue, the
GDS are taking their cut off of almost every flight booked, and even most
flights searched for.
What is
a GDS, and why should you care?
GDS
stands for Global Distribution System. They originated to provide travel agents
with quick access to airline inventory, or available seats on flights. Today,
you most likely get your flight pricing information through a GDS via one of
the many online search engines like Expedia or Kayak. These sites are just more
modern versions of travel agents, but they need the same access to know what
flights have available seats and what the prices are. The thing is, the GDS
charge airlines a small fee each time they provide this flight information, and
often when bookings are made from the information they provide.
Most
airlines feel like they have to play ball. After all, travelers can’t book
flights with you if they don’t know that you have a competitive fare. There are
notable exceptions—Southwest Airlines is famous for requiring you to visit
their website to search for and book flights—but they will remain the
exception. Travelers most likely won’t visit a dozen or more websites each time
they want to catch a flight. And the fees the GDS charge airlines are only
increasing.
The
fees from the GDS coupled with rising operational costs—like fuel—have left the
airlines looking for new ways to generate revenue. And airlines have a hard time increasing the
cost of the flight because of the competition in the industry. This is why all of the fees have started to pop up.
Some airlines are now using fees as an incentive to consumers to purchase
flights directly on the airlines websites. Other airline fees are simply a way
to increase revenue beyond the ticket price, no matter where you book.
For
now, airlines will continue looking for new ways to bring in money. So what’s a
traveler to do?
We
can’t save you from every airline fee, but we know we can save you money on the
cost of your tickets. And we’re continually searching for ways to add more
value to your membership with us—whether that’s eliminating fees or saving you
on other travel costs.
But
ultimately we are seeking to change the travel industry itself. We exist to
make travel cheaper and more enjoyable for you. That’s why FlyinAway puts
routes on sale based on what our members want. And we let you bid the price that
works for you, saving you money on each ticket. We’ve already saved our members
over $20,000 on flights. Changing a multi-billion dollar industry isn’t easy.
But it’s time for some change. We hope you can join us on our mission, and we
look forward to saving you money and making your travel experience better.
