Are
Internet Fares Really Lower than Agency Fare?
Portland,
OR - July 12, 2002 - With the current perception by
many business travelers and some travel managers that
they can purchase lower-priced tickets on the internet,
TOPAZ put agencies and internet travel sites to the
test. Between January and June, 2002, TOPAZ compared
approximately 19,000 agency-booked itineraries with
various internet travel sites including Orbitz, Expedia,
Travelocity and carrier-specific sites. TOPAZ found
that the itineraries booked through a designated corporate
travel agency averaged $116 less than the same itineraries
booked on the internet travel sites. The average agency-booked
fare during this time period was $478 while the average
fare booked through the internet sites was $594.
"There is a high level of perception by many travel-
industry individuals that corporations must have access
to the 'lower fares on the internet' in order to provide
a worthwhile corporate travel program. We have not yet
seen the evidence to support this belief," states Valerie
Estep, President, TOPAZ International, Ltd. TOPAZ found
lower fares on the internet only 8% of the time while
77% of the time the cost for the same itinerary was
higher on the internet travel sites compared to a corporate
travel agency.
Overall, the savings realized was 19% for itineraries
purchased through a corporate travel agency - compared
to the same itinerary if purchased through the specified
internet travel sites. "While sometimes fares found
on the internet are lower than those offered by corporate
travel agencies, they are not typically an 'apples to
apples' comparison, but rather an itinerary within the
parameters of a corporate travel policy vs. one that
might not even involve the same travel days," says Estep.
TOPAZ will continue to monitor the fares available on
travel internet sites along with fares offered by corporate
travel agencies in order to provide valuable information
for the travel industry. In addition, with the increase
in online booking systems being implemented at many
corporations, TOPAZ is now including this data in their
research. About TOPAZ International, Ltd. TOPAZ International,
Ltd., based in Portland, OR, is an airfare auditing,
benchmarking, and statistical information firm specializing
in the use of knowledge and technology to reduce travel
costs for business.
Overbooking
Q.
I've had problems both on airlines and at hotels with
being denied access even though I had a confirmed reservation.
How can this be?
A.
Airlines, hotels, and car rental companies all overbook
their inventory; i.e. they "sell" more seats,
rooms, or cars than they actually have. As infuriating
and as disastrous as this can be for the hapless traveler,
the truth is that the practice is common because "no
shows" are common. Much like a hostess, the vendors
have to try to guess how many "guests" will
neither cancel their reservations nor show up. Since
they have no way to store their product for later sale,
they try to estimate based on history; and often they
guess wrong.
Q.
So how can I avoid getting bumped?
A.
Well, there's not much you can do regarding car rentals,
but for airlines and hotels, the secret is to get there
before other people. Air passengers need to actually
go to the gate and check in early. If the flight is
overbooked, you may have some control. Be sure you arrive
before the cutoff time for that airline--usually 20-30
minutes. If you are late, you have no recourse. Your
seat can be sold to another. Airlines are required to
start solving the problem by asking for volunteers to
forego the overbooked flight for some level of compensation,
usually including a guaranteed seat on the next flight.
If not enough people "volunteer," the airline
will start to bump passengers, usually the late arrivals.
Q.
What are my rights if I get bumped?
A.
If you were on time, your "rights" depend
on the airline's ability to rebook you on an alternate
flight. If they can get you to your destination within
an hour of the originally scheduled time, they have
fulfilled their obligation. If you arrive within 2 hours
of the original time , you will receive compensation
up to $200, depending on the cost of your overbooked
flight. If you arrive more than 2 hours (4 hours on
international flights) later than the original flight,
your compensation will be higher, up to $400, depending
again on the cost of the overbooked flight. This compensation
will usually be in the form of air tickets or vouchers
to be used for future air tickets on that airline. If
being bumped causes provable extraordinary financial
loss, consider not accepting their compensation at this
point. You may want to deal with the customer relations
department at a later time. Consider the actual loss
and the costs of negotiating or even of attorneys before
making your decision. There are some exceptions to the
above procedures. For example, flights arriving INTO
the US and aircraft with fewer than 60 seats are exempt
from these guidelines. There may be other exceptions,
as well.
Q.
Does the same apply to canceled flights?
A.
Flight delays or cancellations are a separate matter.
The first item to consider is the cause of the delay.
If it is weather or other "acts of God," there's
not much the airline can do. If the delay is due to
mechanical or personnel problems, however, the airline
will try to accommodate you on their next available
flight. You may want to be firm in requesting this,
even if it requires odd routing. If you insist, they
may rebook you on a different carrier, but under most
circumstances, they are not required to pay any differences
in costs, so be careful before making the change.
Assertive
passengers may receive minimal amounts for meals or
phone calls if the delay is lengthy. However, keep in
mind that this is a PR gesture. They are not required
to provide such amenities, or hotels rooms. They are
usually more generous if you are stuck in a connection
city than if you haven't started your flying day yet.
Q.
OK, but what about the problem of getting to the hotel,
only to find no room available, even when the reservation
was guaranteed to my credit card?
A.
Remedies here are more a matter of individual hotel
policy rather than law. The least you can expect should
be help in obtaining a room in a comparable hotel, transportation
to that hotel, use of a phone to call people who need
to know of the change, and perhaps some compensation,
up to the cost of one night at the alternate hotel.
Problems
With Luggage
Q.
I arrived but my luggage didn't. What did I do wrong?
A.
Probably nothing. It happens. Assuming you put your
name, address, and phone contact on a luggage tab (and
inside, too!!), your luggage will probably get to you
soon. Considering the complexity of the itineraries
involved, the airline record is actually quite good.
Q.
Yes, I suppose so, but meanwhile, I'm here without my
toothbrush and tuxedo. What do I do?
A.
Well, first, register this lesson for your next trip.
Consider what you can do without, and then take everything
critical with you on board as carry-on luggage. That's
for your NEXT trip. For now, go to the airline's luggage
desk. There are some limited possibilities. The airline
may be willing to reimburse you for some small expenses
(such as tuxedo rental) or provide you with an emergency
kit with razor, shampoo, etc. (hotels also usually have
such things) Their liability for lost or delayed luggage,
however is limited currently to $$1,250, no matter what
the actual value of the missing items might be, and
the amounts they're willing to pay for delayed luggage
(as opposed to lost forever) will probably be much less.
If
the luggage is declared lost, you will need to provide
a list of all the missing items. The airline may even
require sales slips for that brand new Nikon you've
listed. Be sure you keep a copy of your claim, as well
as your original luggage claim tags and your ticket.
And then be persistent.
Q.
This sounds like a nightmare. What can I do to minimize
the problem?
A.
Well, it can be a nuisance, at least. Hint #1: Don't
take anything you can do without. Leave expensive jewelry,
for example, at home. Never, never check money, negotiable
items, travel documents, or medications that you can't
manage without.
Hint
#2: Consider baggage insurance. Your travel agent can
help you with this.
Hint
#3: Check your homeowner's policy. You may have some
coverage for lost items.
Keep
in mind, however, that you can't collect from both your
insurance and the airline.
Hint
#4: Consider buying the new locks available that allow
TSA inspectors to unlock and then relock you checked
luggage. Then, check the locks before you leave the
airport to be sure they're in tact. If not, look
to see if something's missing. If a TSA inspector
opened your luggage, you should find a card stating that
inside the bag.
Hint
#5: Report any damage beyond normal
wear and tear before you leave the airport, while you can show the damage
to an airline representative. This is more credible
than claiming via phone at a later time.
Other
Tips for Savvy Travelers
Pay
for air tickets with a credit card if you can. This
protects you against carrier bankruptcy after your purchase
but before you travel. In addition, some cards carry
automatic flight insurance for items purchased with
the card.
When
traveling to a remote country, take a small rubber ball,
the kind that comes on a paddle or with jacks sets.
They come in handy as stoppers to collect water. For
some reason, stoppers in hotels in some areas just don't
exist.
Pack
all leakables in zip-lock plastic bags. Take a few spares
for the hand-wash items that didn't get dry. Take a
washcloth in your carryon luggage to use to freshen
up. Store it in one of your spare plastic bags.
Many
people use business addresses on luggage rather than
alert thieves that they are leaving home for a while.
If you don't have a business address, ask a friend if
you can borrow theirs.
Carry
copies of your medical prescriptions with you whenever
you travel, especially if you cannot do without the
medication. At least if you lose your blood pressure
medicine or your insulin or similar critical items,
you can tell the local doctor exactly what you need.
Unless
required to leave your passport with authorities or
hotel personnel, carry it on your person or leave it
in the hotel safe. North American passports are a negotiable
item on the black market and are not easily replaced.
For
the reason above, savvy travelers make a copy of the
pages in their passport and the current visas and keep
the copy in a place separate from the passport itself.
Consider
exchanging funds before you leave the US. Unless the
currency rate changes drastically (and who can predict
that?,) you can save quite a bit in ATM or hotel fees
by converting a larger sum ahead of time.
When
returning from a foreign country, spend their coins.
Most exchange agencies will not purchase coins, only
bills.
Remember
that the early-bird principle applies to many things
in the travel world--to preferred airline seats, best
fare availability, choice cruise cabins, etc. And the
early boarder has better access to stowage space for
carryon luggage.
Q.
Wait a minute. I booked my holiday ticket in the summer.
Then
in October, a lower fare came up, but I was stuck with
my original ticket. What's the deal?
A.
It happens. If the new fare is lower than the original
by an amount that exceeds the change penalty (depending on the airline involved,)
you MAY be eligible for a refund. IF the airline you're
ticketed on is offering the new fare, and IF you can
meet the requirements (such as advance purchase time,
minimum stays, season, day of the week) of the new fare,
and IF the inventory type required for the new fare
is available on the flights you're already confirmed
on (whewwwww), then you can probably receive a refund.
Q.
So wouldn't I be better off waiting to see what fares
come up?
A.
It's a gamble. If you can gamble with your trip, you
may be lucky. If not, beware. Availability of seats
becomes more of a problem as time gets closer, fares
get canceled, rules change.
Q.
Does my health insurance cover me in other countries?
A.
BEFORE you leave the US, check your personal health
insurance policy to see if it covers you in other countries.
It probably does not. Consider purchasing insurance
that will reimburse you for health care received, emergency
evacuation, etc.
Back
to top
|
