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Excerpts From Clark's Shows: Travel

Jul 16, 2009 -- Airlines involved in price-fixing of fuel surcharges

The price-fixing of fuel surcharges is something that really burns Clark up. When the cost of a barrel of oil dropped, the surcharges did not go away. Anyone smell a rat here?

The Wall Street Journal reports that this rat may be bigger than previously thought. The CEO of Virgin Atlantic Airways admits he was involved in the price-fixing of fuel surcharges with British Airways and other unnamed airlines.

Need another clear indication that fuel surcharges are just a bogus ploy? Consider this: A shorter international flight often has a higher surcharge than a longer flight.

There is a simple way to fix this: Require airlines to quote the entire price of a ticket (including fuel surcharges) in advertisements, to travel agents and on the web.

Clark is upset that no one at Virgin or BA is going to prison over this debacle. Every executive involved at every airline should go to jail. Monetary slaps on the wrist are not enough.

On a brighter note, airfares for both domestic and international travel will be fantastic this fall. Why? Air travel is discretionary and people simply aren't traveling like they once did. So look for deals from September up to mid-December -- except right around Thanksgiving.

And when you get where you're going, the hotel rates will be great too. The Smith Travel Research firm says the average room rate has dropped 10% year over year.

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.

Mar 11, 2008 -- Cruise fuel surcharges being refunded

Were you one of those cruise customers who got hit with a fuel surcharge fee after you booked on Royal Caribbean or Celebrity? Florida's attorney general has reached a deal to refund this rip-off surcharge to customers. The cruise industry is controlled by a small number of players who act in utter arrogance, so Clark is pleased to see this latest development. He completely supports the right of any business to jack their rates to whatever they want before a sale. But to tack on bogus fees after the fact is disgusting. While the attorney general deserves kudos, where was the FTC on this issue?

May 17, 2005 -- Moving industry infiltrated by crime

One in seven people move every year, and most have some kind of horror story to tell. Unfortunately, the moving industry is being infiltrated by organized crime. There are two types of moves: state-to-state moves, and local moves (regulated specifically by the state or not at all). There is a loophole allowing criminal activity in the laws written by Congress for state-to-state moves. They either try to extort money from you, steal your possessions, or a combination of the two. The New York Times reported that two consumers who were scammed set up a group, Citimove, to help people learn about moving scams. The scams (both state-to-state and local) work by the movers quoting an original price, picking your things up, and then calling weeks later with a ransom to get your possessions back. Clark stresses that moving preparations need extreme care and caution. Movingscam.com is a good website to learn to protect yourself. Moving.org will help choose a certified mover for a state-to-state move. Purchase insurance coverage from your movers because they are not responsible for anything stolen or lost without insurance.

Dec 22, 2004 -- What to do about bereavement fare ripoffs

You’ve probably heard of bereavement fares, right? These are the supposedly “discounted” fares people pay when a loved one dies or is about to die and the relative must find a flight to the funeral or deathbed. We all know that bereavement fares are a huge ripoff, though. Clark thinks we need a viable solution for this shameful situation. But a recent ‘solution” proposed by the Feds may just create more of a problem than already exists in Clark’s opinion. A bill percolating in the U.S. Senate would force the nation’s airlines to sell the lowest priced tickets to people who can prove they are going to a funeral. It sounds like a good idea. But when the government interferes in the free market, things often turn out worse. The idea came about because someone in the Senate was charged a very hefty fee to attend a funeral at the last minute. The senator took action and now has gotten Congress to do away with this law. But Clark doesn’t think we need a heavy hand from Washington to take care of this problem. People simply need to look around for other fares in different cities and give their business to one of the discounters. Discounters now charge about one-fourth of what full fare airlines charge on a bereavement fare. So, take just a couple of minutes to search discounters even when you are grieving. Check out travel from other airports and other days. It’s the little changes that make a difference in airfare. Capitalism will take care of this problem.

Apr 05, 2004 -- Top 10 scams in the U.S.

Clark often reports on ripoffs going on in the consumer world. Today, he has a Top 10 list of scams, schemes and scandals, provided by the state regulators who watch over financial analysts and brokers. Drum roll please…. The No. 10 scam is variable annuities. If you don’t know what these are and you don’t have any, good. If you do, you don’t want to put any more money into these plans. They have massive commissions and are absolutely horrible for your wallet. No. 9 are scandalous mutual fund companies. No. 8 is Internet fraud. No. 7 are “high yield investment” scams. Some that Clark has received calls on involve exotic overseas investments that are a complete scam. Insurance agents who sell people bogus investments come in at No. 6. Most insurance agents are honest, but a number of them have been involved in very scandalous affairs. No. 5 are church ripoffs. Just because someone seems religious does not mean that person is on the up and up. At No. 4, phony brokers. Just because someone says something is going to be a great investment doesn’t mean it will. Promissory notes – or fake CDs – are No. 3. These are promises that someone will pay you later if you give them money. But there is no guarantee, and it’s not safe. No. 2 is any kind of scam against seniors. If you’re not involved in your parents’ finances, be nosy! And, the No. 1 scam in the U.S. involving your wallet are Ponzi schemes. These are schemes where criminals recruit people to pay back other people who have invested, and then you have to recruit someone once you’re in. Eventually, these collapse because there are no more people willing to “invest.” There a lots of people who will sell you sizzle, but that’s all it is.
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