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.