Airline fees

Airline fees

Airline fees

Introduction

There are several challenges for the aviation industry that threaten and influence change radically in the way as travel, shop, and the costs that are expensive for the air travelers. Although air travel has become enormously popular in recent decades thanks to competition and price war that is constantly keeping airlines to attract new passengers (or capture for their own land to those who travel using the services competition), still the vast majority of the future decisions taken with regard to passengers trip, especially rely almost exclusively on the factor "fare," which ends up tilting the balance. Indeed, price is an essential component, and often ends up defining the entire operation. No wonder then that passengers seek by every means possible to save all they can in the cost of tickets, in order to have more money available to use at our destination and maximize enjoyment. In short, the plane ticket is generally considered by the user as a necessary expense but "useless" in the sense that virtually no one takes a plane just to be on board the same, but it always does in terms of another objective principal, which moved to another place, whether for business, pleasure or some other need.

Discussion

A number of contracts between the Global Distribution Systems and Distribution Systems (GDS) and the airlines is looking ways to build a future by experimenting with different ways to reduce its costs by implementing new channels. American Airlines is the only major U.S. carrier to whom all its contracts with three major GDS's are due in 2011 (Salter, 2008). The airlines want to distribute the content that they choose without having to provide all their fees contractually or as it is called in the industry, it is Full Content. Obviously, this allows airlines to discriminate and choose where and with who offer guaranteed rates. It also allows the airline to focus more on the distribution through its own site or alternative sources of distribution. Today, as an example, Southwest Airlines and Interjet use this distribution model. To reduce and choose where and how to distribute the airline content means average savings of $ 12, which can mean millions of dollars in savings for the airline, however, would represent millions of dollars in additional costs to those who rely on the use GDS to distribute the contents of the airlines.

Another factor that could change the way as we buy is the credit cards and discount rates (merchant fees). In the past 18 months, airlines like KLM, British Airways and Finnair have imposed a surcharge on tickets booked in some European markets when used as payment a credit card. In late 2010, British Airways announced that beginning March 1, 2011, will introduce a surcharge on a fee of GBP £ 4.50 (USD $ 7.02) in all economic or discount tickets purchased by credit card through British travel agencies. This practice will be watching for other airlines and evaluated potentially be implemented in other ...