Congress Calls for More Airline Fee Transparency

The draft Omnibus Appropriations Act just released by Congress includes language that would require airlines to be far more transparent about all of the extra fees consumers are charged when booking a ticket.

The appropriations act, which covers the fiscal year 2018, is still making its way through reviews and includes language addressing baggage fees, seat upgrade fees and insurance fees tied to airline tickets.

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In December 2017, the U.S. Department of Transportation withdrew a proposed rule that would have required airlines to prominently disclose ancillary fees.

The new language included in the appropriations act does not carry the force of law but is a clear signal of intent from Congress.

The appropriation’s report language states that “The department has, in recent years initiated a process to establish more transparency in displaying the total prices of airfare tickets and related charges. Whether consumers are purchasing directly from the airlines or through ticket agents, consumers should have clear and accurate pricing information when choosing among various air transportation options.”

The report goes on to state that currently, fees for additional services can be difficult to determine when searching for airfares. As a result, consumers may be unable to understand the true cost of travel when comparing prices.

The measure seeks to have guidelines established that would result in airlines or any for-profit seller of commercial air transportation displaying, on the airline’s website or the metasearch site, full ticketing charges, including seat price and any additional fees the consumer will pay for such things as baggage, seat upgrades and optional flight insurance.

“As a result, all the charges should be clear to the consumer, at the time of the initial search, and the anticipated total charges fully disclosed,” states the language in the report.

Congress is requesting that a report on the progress of its proposed guidelines be provided to the House and Senate Committees on Appropriation within 180 days of passage of the appropriations act.

The American Society of Travel Agents (ASTA) issued a statement supporting the new language being put forth by Congress.

“We applaud Congress’ call for DOT to act on ancillary fee transparency,” Eben Peck, ASTA’s executive vice president of advocacy, said in a statement. “While a far cry from the full transparency in and consumer access to airline ancillary fees ASTA has been pushing for since 2011, the department’s 2017 proposal requiring that consumers be notified of airline bag fees at all points of sale, including through travel agents, was a step in the right direction.”

ASTA’s statement noted that the organization believes strongly that withholding important airline information from consumers who engage the services of a professional travel advisor harms the traveling public, and that those who purchase their travel through agents should be as informed and empowered as those who buy directly from airlines.

“With Congress pushing DOT to revisit the issue, we intend to continue our efforts in Washington to make sure these travelers can see, compare and buy ancillary services through their agent,” Peck said.

ASTA’s 2017 consumer research, published earlier this year, found that 79 percent of travelers support requiring airlines to disclose all fees up front. In addition, 75 percent of Americans believe the government should prohibit airlines from charging for carry-on bags and 66 percent support the prohibition of checked-bag fees altogether.

Further, according to the ASTA, study Americans are seven times more likely to say the government favors airlines over passengers.