Archive: September, 2009
American Express Co.'s travel advisory unit today forecast that travel costs are likely to rise slightly next year, reflecting pent-up demand coupled with changes in supply. Business class air fares will see some of the greatest fare increases because of the need for businesses to keep traveling internationally. A few stats from the report are in a Travel Weekly trade-newspaper article found here.
At the same time, Amex officials said at a news conference that there is a "new normal" level of business travel, with companies scrutinizing every trip by every traveler, that will keep cost increases modest. More use of teleconferencing -- like the techology Amex was using to broadcast its news around the world -- is part of a serious effort to keep costs down and find ways to measure ROI, or return on investment, of every trip.
One of the most interesting tidbits from the forecast was a note that when measuring average air fares, what can't be precisely included is how "ancillary fees," such as for checked bags, add to the cost of air travel. Best estimate by the Amex experts: Add about 15 percent to the cost of the average air trip to get the true bottom line figure these days.
I will tell you more about the data that Amex reported in an upcoming column.
As those who have read this blog and my print column in the past know, nothing raises the hackles of my readers like the idea of allowing cell-phone calls on U.S. airlines during the hours the plane is in the air. You, and lots of others, including flight attendants, are very much opposed to lifting the ban on talking (not necessarily texting or Web-browsing) during a flight.
But airlines in some other parts of the world seem to have found a way to do it that isn't driving passengers mad. Read more about what's happening overseas here, and then tell me -- as you usually do on this topic -- what you think.
Two news stories today provide some illumination on the airlines' financial woes and one of the ways the industry is dealing with it. The International Air Transport Association reports that customer demand is stabilizing but airlines remain largely without profits. Read more here.
The second article reminds us that airline fees to check bags, in particular second bags on international flights, have gone up. It's now $50 for that second bag going on flights to many countries. A link to that story is here.
The Sunday after Thanksgiving is traditionally the busiest travel day of the year and the major airlines this week have given you another reason to plan travel on a different day. The carriers are matching a United move to add a $10 "miscellaneous surcharge" -- where do they come up with the phony names for a fare increase? -- for travel on Nov. 29, and Jan. 2 and 3. The January days tend to be the heaviest for Christmas-New Year's travel.
I was alerted to this new fee by Rick Seaney, CEO of the FareCompare Web site, who says that the last-minute holiday fare sales of last year are unlikely to be repeated this year. Check it out at http://www.farecompare.com/
Read this news in conjunction with the post below about how much airlines now collect in change and cancellation fees.
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- Baggage bungling at PHL
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