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Oct 29, 2008 -- Price-fixing of fuel surcharges a complete joke

Price-fixing on fuel surcharges is something that really burns Clark up. What a joke; the cost of a barrel of oil is lower today than it was a year ago. Yet if you buy an international ticket today, you'll almost certainly get ripped off by these bogus surcharges.

A new study from USA Today and FareCompare.com shows that surcharges are not in any way related to the distance you're flying. A shorter international flight can have a higher surcharge than a longer one. It's not legal to fix a price in the United States, but that's exactly what's going on here.

In another example, Christa found a $65 roundtrip international fare -- but when she added in the junk fees it was over $400! Clark says if they want to charge more, fine, do it. But don't lie to customers with phony fuel surcharges.

New Jersey senator Robert Menendez is the only member of Congress making any noise about this perversion of capitalism in the airline industry. Senator Menendez wrote the CEOs of 11 airlines to complain about fuel surcharges. Meanwhile, Clark has heard anecdotally that people are on a buyer's strike over these pricy international tickets.

Yet some things about travel are getting better. Hotels are a deal as people aren't flying and car rental rates are low. Clark is getting his next rental for $16/day -- and he thinks even that is too much! In another example, tourist attractions are cutting prices because they have no customers. So if you can drive somewhere for vacation, then you're getting a real steal of a deal as the cost of gasoline drops.

Finally, the TSA will have a new procedure coming that will allow you to pack big bottles again -- no more of the 3-ounce containers. This is not in place yet, but it's coming at a soon-to-be-determined date.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • Surcharges for spouse to drive
    My ins. agent says this is a rip-off as my wife is covered for anything she drives including rentals.
    This has happened to me before and now when planning a trip, four major co's want to charge me.
  • car rental prices
    with proper shopping rental car prices (before taxes) can be very economical. but what is terrible-and almost to the point of criminal, is the 30-50% taxes and fees tacked on by state and local governments to pay for everything but mostly sports palaces for megamillionaire and billionaire owners and players. don't believe it for a minute when your bought off and paid politician tells you that everyone but you pays these confiscatory taxes and fees in your local area. over half of cars rented in virtually every major city is by locals. remember and don't ever forget that old saying: "the power to tax is the power to destroy". powerful words of wisdom.
  • Fuel surcharges
    Clark,
    With the airline industry losing so much money, how can you say we are getting ripped off? It is a brutal business, and we are lucky many airlines survive, otherwise, the few that would remain standing would charge us exhorbitant prices. Start complaining when their profits are large.
  • cruise surcharge
    I too feel ripped off by the cruise line...i booked in april and got stuck with a $15 a day surcharge even though our cruise goes from miami to the bahamas and back...maybe 400 miles round trip...yet I'm paying the same as people cruising the southern carib as far as barbados (1500 round trip)...the industry claimed this to be a temporary measure to offset the high fuel cost, but it will take an act of congress or a boycott to get it dropped...where is the consumer protection agency during all of this?
  • Fuel Charges - Price Fixing?
    It's not right to say that fuel surcharges equal price fixing. The only thing that matters is the total price, and that certainly is not fixed. It is true that having to figure out the total price after add-ons is annoying, and can be deceptive to those who aren't aware of the add ons.
  • Car Rental
    $16 day is too much to rent a car- what a stupid statement. Clark's books are too much. The car costs $20,000 investment and his books are on 10 cents worth or paper. He is making more profits on his books then the car rental companies are making on their car.
  • fuel surcharge
    I think a industry also that is ripping us off is the cruise industry. I have a cruise booked on one that is charging $11.00 a day WOW!!!. that is $144.00 dollars extra attached to my fare. after oil has fallen 53% over the last 3 months they still have not lowerd there charge. i called them this morning and asked and as of right now there is no plans of lowering or dropping them after the big oil slide, i think we all need to boycott all forms of transportstion that does this.
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