Flying Under The Radar: Low-Cost Airlines' Hidden Costs

Flying Under the Radar: Low-Cost Airlines' Hidden Costs Are budget airlines the cheapest way to fly? You'd be surprised. The practice of inventing and hiking up costs is rife among low-cost airlines across the board. While they are trying to keep overhead costs down in a competitive industry, they have recently started charging more for details that most consumers don't even notice. In addition to the much bemoaned baggage check-in fee, there are also credit card surcharges and phone reservation costs that seem to come from the shadows. Find out how you can spot the tricky, but all-too-common add-ons. Low Cost U.S. Airlines Extra Charges* JetBlue Southwest Virgin America Spirit Average Ticketing Changes $100 $0 $75 $100 $68.75 Making Reservations Over Phone $15 $0 $15 $20 $12.50 First Checked Baggage $0 $0 $25 $25 $12,50 Second Checked Baggage $30 $0 $25 $25 $20 Carry-On Bags $0 $0 $0 $30 $7.50 Priority / Select Seating $10-30 $15-30 $8-16 $11-25.33 Entertainment / Media (movies, headphones, etc.) $8 $7 $7.50 Pillow / Blanket $7 $0 $12 $6.33 More Leg Room $10 $15 $25 $16.67 In-flight Food $0 $0 $3-10 $2-5 $1.25-3.75 Bringing Pets Aboard $100 $75 $100 $100 $93.75 Travel Insurance Box Checked by Default No No No Yes Total for Each Airline $280-300 $90-105 $277-284 $335-346 O * Domestic Flights | Note: dashes denote features not offered by airline or information not found. In-flight food, if any is provided, costs an average $1.25 - $3.75 on U.S. airlines. This does not include the price of alcoholic beverages, which can range from $3 - $6. At $335 to $346 in potential add-on fees, Spirit Airlines is most guilty of skyway robbery. Yet, despite creating dissatisfaction for their $30 carry-on baggage fee, they still managed to emerge as a leading low-cost carrier. Bringing Sparky aboard with you may cost you up to $100 on many U.S. airlines. "We charge you a really cheap fare and if you want to buy other stuff, we'll sell it, but that's your call," "What airlines are really selling is convenience, and the more they make convenience an add-on for which you must pay extra, including baggage fees, the more some customers will recoil. the CEO of Spirit Airlines said in an interview with ABC News. Wall Street Journal Online Low Cost European Airlines Extra Charges* easyJet (UK) Ryanair (IRE) Transavia (FR) Average Ticketing Changes $50 $55 $49 $51.33 Debit/Credit Card Surcharge $6 $8 $7 Fuel Surcharge $0 $0 $42 $14 Check-in Online $0 $7 $0 $2.33 Making Reservations Over Phone $24 $16 $7 $15.67 First Checked Baggage $25 $24 $0 $16.33 Second Checked Baggage $55 $55 ---.......--- In-flight Snack / Meal $2-7 $6-9 $4-8 $4-8 Bringing Pets Aboard $56 $56 Travel Insurance Box Checked by Default Yes No Yes $107-112 $171-1740 $158-162 Total for Each Airline * Domestic Flights | Note: dashes denote features not offered by airline or information not found. All Euro and GBP values were converted to U.S. Dollars. Exchange rates relevant as of October 2010. Intangible Extra Costs What some of the U.S. budget airlines charge an unreasonable amount for, many of their European counterparts neglect to even offer. For example, Ryanair and EasyJet don't allow pets in the cabin, and, with the addition to Transavia, neither of those airlines offer connecting flights. Of the three European airlines reviewed, Ryanair tacked on the most expensive package of potential extra fees, with the total ranging from $171-174 A study led by IdeaWorks revealed that Ryanair's total revenue, raised through their ancillary or extra fees, soared by 73 percent between 2006 and 2008. Sneakiest Hidden Charges Phone Reservation Fees Travel Insurance Noise Isolation Surcharge Debit or Credit Card Surcharges Online Check-in Fee EasyJet, Transavia, and Spirit Airlines are guilty of having the travel insurance option automatically checked on during the booking process. It is up to the consumer to manually un-check it. Only the European airlines participate in this questionable, revenue-raising practice. Ryanair and easyJet both charge $8 and $6, respectively, for debit or credit card usage on ticket purchases. Of all the airlines shown, only Ryanair is able to sneak in a $7 online check-in fee. In-person check-in at the airline was made unavailable to any passenger traveling after October 25, 2009. Transavia charges 4 Euros for noise isolation, which is quietly added on to tax fees. The U.S. airlines reviewed have an average of a $12.50 surcharge for phone reservations. Many of the low-cost airlines tack on phone booking surcharges to reduce call center costs and encourage the less expensive option: booking online. Sources: MSNBC.com | WhichBudget.com | Wall Street Journal | CompareAirlineFees.com | USA Today mint.com %24