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So what ABOUT those fuel surcharges?



 
 
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  #1  
Old October 27th, 2008, 05:14 AM posted to rec.travel.air
Ablang
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Posts: 123
Default So what ABOUT those fuel surcharges?

Good News: Oil is dropping like a stone. Not So Good News: U.S.
airlines aren't dropping their fuel surcharges much at all, beyond
some cuts on international routes. And here's why: the airlines
don't have to drop fuel surcharges -- not as long as they can find
passengers willing to pay for them, and so far they have found such
passengers -- the business travelers. They pay the brunt of it, and
until these Road Warriors start to significantly reduce their travel,
the surcharges will remain. One thing you can do to avoid fuel
surcharges: buy your tickets at least 14 days before departure and
you'll avoid many of the surcharges aimed at business travelers.
Meanwhile, Sen. Robert Menendez of New Jersey asked airline execs to
lower surcharges in the U.S., saying "American families are
struggling" but not much has changed. Something else you can do:
follow FareCompare's "Fuel Surcharge Watch" Chart for the latest
developments, and definitely look out for the fees you can avoid --
which you'll find on FareCompare's Domestic Airline Fee Chart --
remember, bring your own food, pack a pillow, and always use a carry-
on bag. FareCompare.com CEO Rick Seaney adds, "My biggest all-around
money saving tip is, always head to FareCompare.com before you fly --
we can show you how to stretch your budget by finding the cheapest
airfare available. And don't forget, I've got tons of money--saving
tips on my blog -- the aptly named RickSeaney.com." Thanks, Rick
  #2  
Old October 27th, 2008, 07:54 PM posted to rec.travel.air
Bob Myers
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Posts: 204
Default So what ABOUT those fuel surcharges?


"Ablang" wrote in message
...
Good News: Oil is dropping like a stone. Not So Good News: U.S.
airlines aren't dropping their fuel surcharges much at all, beyond
some cuts on international routes. And here's why: the airlines
don't have to drop fuel surcharges -- not as long as they can find
passengers willing to pay for them,


Well, duh. Welcome to Market Pricing 101. You ALWAYS
charge as much as the customers are willing to pay for a given
product or service. The name of the game is maximizing your
revenues/profites, and nothing else. Whether you wrap it all
up in a total price or break parts out and call them "fuel
surcharges" or some such is a marketing question, not an
economic one.

Bob M.


  #3  
Old November 16th, 2008, 06:07 PM posted to rec.travel.air
Jesper Lauridsen[_1_]
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Posts: 463
Default So what ABOUT those fuel surcharges?

On 2008-10-27, Ablang wrote:
Good News: Oil is dropping like a stone. Not So Good News: U.S.
airlines aren't dropping their fuel surcharges much at all, beyond
some cuts on international routes. And here's why: the airlines
don't have to drop fuel surcharges -- not as long as they can find
passengers willing to pay for them, and so far they have found such
passengers -- the business travelers.


Who cares about "fuel surcharges". What matters is the final price, how
that is distributed over base price, taxes, airport fees, fuel surcharge,
because-we-feel-like-it charge etc, makes no difference.
  #4  
Old November 18th, 2008, 04:04 PM posted to rec.travel.air
Robert Neville
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Posts: 43
Default So what ABOUT those fuel surcharges?

Larry in AZ wrote:

The airlines have a lot of losses to make up, if they ever can...


Fuel surcharges have nothing to do with making up losses or the price of fuel.
All they are is a means of raising prices and minimizing the loss of demand from
a price hike.

The other poster was correct - as long as the airlines are selling tickets,
those fuel surcharges will stick around, until a government or court tells them
to stop with the false advertising.

Actually, the financial wiz kigs running the airlines love all the extra
charges. It allows them to advertise super fantastic sales on the base price,
but keeps the final price paid quite high.
 




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