Travel @ AsiaOne

Why does travel industry shun transparent fares?

Travel agencies perhaps want to entice and excite you, to have you call them up to find out more and, in the end, be encouraged to sign up for that dream holiday. -ST

Wed, Oct 29, 2008
The Straits Times

By Karamjit Kaur

When I first started reporting on budget airlines, I unwittingly misled my readers.

It was September 2005 and Tiger Airways had just burst onto the aviation scene with unbelievably low fares of $1 for flights to Thailand.

Malaysia's AirAsia hit back with fares of 49 cents, then 29 cents and, finally, free seats.

But what about airport taxes, fuel surcharges, insurance fees, convenience fees, administrative charges and God knows what else, an agitated reader asked me. 'Do you know you are misleading your readers?'

He was right.

Needless to say, I am 110 per cent behind the Advertising and Standards Authority of Singapore (Asas), which has made it a requirement for all airlines and travel agencies to reveal full fares from Nov 1.

No more hidden charges and no more advertisements with '$0 fares' flashed in big, bold print while the words 'Conditions apply' or 'Excludes prevailing taxes and fees' sit at the bottom in microscopic font.

My only grouse is that the Asas did not do this earlier.

Such rules already exist within the European Union and in Australia and New Zealand.

The Consumers Association of Singapore (Case) first gave the matter a public airing in 2006.

Its president Yeo Guat Kwang told The Straits Times then that faced with a growing tide of complaints from frustrated travellers, the consumer watchdog would take the matter up with the Ministry of Trade and Industry.

Last year, Case received 969 travel-related complaints, and in the first nine months of this year, that number was 845.

Why it took more than two years to get this off the ground is perhaps best answered by the reactions of the travel industry to the new rules.

Here are some:

'This is going to make things really difficult for us.'

'How come other industries don't have to reveal everything?'

'Travellers already know that the fares quoted do not include taxes and surcharges so there's no need to advertise the full amount.'

'They can always call and find out anyway.'

Such comments baffle me because whenever I asked travel agencies and airlines why they did not reveal full fares, the common answer was that if they did and nobody else followed, they would be disadvantaged.

'People would think we are more expensive,' they said.

If the experience of Singapore Airlines is anything to go by, such worries are unwarranted.

The airline which has been voluntarily disclosing full fares in all its advertisements since January has not had any negative impact from the move.

If anything, consumers appreciate the transparency, said spokesman Stephen Forshaw.

But never mind. Even if travel agents and other carriers were worried that revealing all would harm them in some way, it should not be an issue now since the full-disclosure ruling is to apply to all.

With a level playing field, why is there still a big fuss?

I would hate to think that the real reason the industry objects so fiercely to full disclosure could be that travel agencies want to be deliberately vague.

They want to entice and excite you, to have you call them up to find out more and, in the end, be encouraged to sign up for that dream holiday.

Whatever the reasons, this will hopefully change from next month. I say 'hopefully' because while the ruling is an important first step, policing it will be a bigger challenge.

Travel agents are bound to rebel and when they do, Asas - an advisory council to Case - must stick to its guns.

Media giants Singapore Press Holdings and MediaCorp, which are represented in the advertising council, have agreed not to publish or air advertisements that do not meet the new guidelines. They must enforce this strictly.

Mr Robert Khoo, chief executive officer of the National Association of Travel Agents Singapore, said: 'I don't know if the media is going to scrutinise every advertisement. If they do and reject (those that do not meet the guidelines), travel agents will have no choice but to follow the guidelines...Unless the media insists (on the new rules), I don't think they (the travel agents) will listen to the association'.

The cyber world will be tougher to monitor. Case says it will do random checks and follow up on consumer feedback for online ads.

Recalcitrant agents and airlines can also be taken to task under the Consumer Protection (Fair Trading) Act - an avenue for consumers to take action in the face of unfair practices.

In the end, though, it is the consumer who must make a stand. Say 'no' to travel agents and airlines that do not reveal all. Shun them. Boycott them. Have them reported. Only then can things be set right.

karam@sph.com.sg

 


This article was first published in The Straits Times on 27 October 2008.

 

 
 
 
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