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Hotwire: Hidden Fees in their “Complete” Prices

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When it comes to shopping for travel, the price that catches your eye is not always the price you pay. And rarely is it lower than advertised.

Hotwire.com is a site that offers discounted airfares, hotel, and car reservations by not disclosing what airline, hotel or car rental agency you are contracting for until after you pay. (It is like Priceline without the price guessing games.)

On it website, Hotwire advertised car rental rates as low as “$13.95 with no hidden fees.”  Just beneath that it listed Boston with rates as low as $5.95. What a deal!  Clicking on that link brings up the typical pricing form where you enter dates of travel.

For a one day rental from March 28 to March 29, the system returned the following price:

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Yes, it is $3 higher than the lowest price, but it still a great deal. The asterisk after “$8.95 per day” goes to this:

*MOUSE PRINT: 

* Rates are shown in US dollars. Total cost for Hotwire Discount rates includes applicable tax recovery charges and fees.

Indeed, this is more good news — $8.95 is price you really pay. Or is it?

*MOUSE PRINT: On the next screen, the truth is revealed:

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Adding the taxes and fees makes the total cost of the car triple the advertised price!

Unfortunately, the problem of advertising incomplete prices is not limited to Hotwire. Most car rental companies, airlines, cell providers, and cable companies attract you with seemingly low priced packages only to relegate to the fine print or your first bill what the true total and complete price really is.

All these services have extraordinarily high fees, charges, and taxes added to the promoted price which can bring the total to 30%, 40% or more than advertised. Here’s a novel idea: companies should make the price you see be the price you pay! 

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American Airlines AAdvantage: Miles to Expire in 18 Months

American AAdvantageThe nation’s oldest and largest frequent flier program quietly announced on June 1 that anyone who does not earn or redeem miles at least once every 18 months will lose all the banked miles in their accounts. Previously, the time limit was three years.

The American Airlines’ AAdvantage Program now comes in line those of US Airways and United Airlines that cut their inactivity period to 18 months at the beginning of 2007.

*MOUSE PRINT:

AA chart

Translation: While the change doesn’t go into effect until December 15, 2007, it is retroactive. So, miles that you earned as recently as June 15, 2006 could expire this December rather than in 2009, if you have had no account activity since then. Here is the new policy.

An easy way to earn miles (and keep your account alive) is to buy something online at a store that gives AA miles with every purchase, or donate a minimum of 250 miles to certain charities.

If you lose all your miles, American Airlines will generously allow you to buy them back for $50 per 5000 miles, plus a $30 processing fee.

No doubt, AA’s new policy will AAnger many travelers.

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Skybus: Airfares as Low as $10*

Skybus

In a few weeks, a new low-cost airline called Skybus will start flying from east and west coast cities to Columbus, Ohio.

The big lure will be $10 airfares.

Skybus is trying to pattern itself after some very low cost European carriers like Ryanair. The company says, “We’ve developed a very simple operating model that produces a dramatically lower cost structure to fly people safely and reliably from where they are to where they want to go.”

What are their secrets for cutting costs?

*MOUSE PRINT:

1. They have no phone number! 

“Seriously. We’d love to chat, but those phone banks are expensive.”

2. They charge you for everything (except using the toilet):

– “The first two [checked] bags are 5 bucks apiece.”

– “That also goes for blankets and pillows–which, by the way, you get to keep if you buy.”

– Want a good seat?  “You can pay 10 bucks extra to board our brand-new A319 airplanes before anyone else.”

3. You must buy their food if you want to eat:  

“Hungry? Thirsty? Bring cash. Oh, and don’t sneak food onboard unless you brought enough for the whole plane.”

4. Don’t expect many employees:

 “… to keep our costs low, at most airports our agents serve “double duty”, moving from the check in counter to the gate when it’s time to board a flight. This means that if you arrive at the airport less than 30 minutes from your scheduled flight, there may not be agents available at the ticket counter to assist you.”

5. You won’t find Skybus at some of your favorite airports: They use less crowded, cheaper, and less convenient airports such as Portsmouth, NH (instead of Boston), and Bellingham (instead of Seattle).

6. Got a complaint?

“We can’t guarantee a personal response to your message…”

7. Fares “from” $10:

They may only have as few as 10 seats at that low price.

Despite these quirks and unexpected “features”, Skybus may revolutionize low-cost air travel in the US, and put pressure on other airlines to lower fares.

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