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Goodbye $99 seat sale, hello truth in advertising.
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| kotsy |
About friggin' time! honestly! Now if we could just apply the same principal to ANY retail price like in europe...
| quote: | Originally posted @ http://www.moneyville.ca/article/11...ttawa-says?bn=1
Tell the truth about airfare costs, Ottawa says
Goodbye $99 seat sale, hello truth in advertising.
Frustrated consumers have long complained the $99 ticket really wasn’t $99, once taxes, airport improvement fees, security charges and fuel surcharges were added in.
The federal government announced Friday it will bring in new regulations requiring all Canadian airlines to clearly advertise what the passenger will pay.
“This will allow consumers to easily determine the full cost of airfares in order to make informed choices,” said Steven Fletcher, minister of state for transport.
However, it will probably take a year before the new rules go into effect as the government consults with airlines.
“It’s long overdue — truth in advertising,” said Michael Pepper, president of the Travel Industry Council of Ontario. “It’s great for consumers.”
Pepper said this finally levels the playing field especially in Ontario, Quebec and British Columbia, where travel agencies, which are provincially regulated, are required to advertise the total cost.
The airlines have long resisted such a move, but as other countries have adopted such requirements, they now say they’re willing.
New rules in the United States go into effect in January while Europe has had a similar consumer protection rule in place since 2008.
“It’s an evolution,” said George Petsikas, president of the National Airline Council of Canada, which represents the country’s largest passenger carriers. “We’re happy to work with the government in setting up the rules.”
For Canadian airlines, the key is ensuring all carriers are subject to the same rules. That means foreign carriers that market their flights here must abide by Canadian regulations, Petsikas said.
WestJet said it welcomes “all-in pricing to provide the travelling public with comparability among all airlines.”
Air Canada said for years it has publicly stated “we would happily comply with whatever advertising rules the government wishes to implement provided they apply equally to all carriers, domestic and foreign, against which we compete.”
Echoing its rivals, Porter Airlines said: “We look forward to working with others to create a level playing field for how fares are advertised.”
Olivia Chow, the NDP’s transport critic, called it outrageous that it’s taken so long for the government to act.
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| failsafe |
So let me get this straight.
It's okay for McDonald's to advertise a $5.99 meal and not include tax in the price.
It's okay for Ford to advertise a $25,000 truck and not only omit taxes, but a load of extra costs that Ford tacks onto the price.
It's okay that Sears can advertise a $1000 mattress and not include the tax in the price.
It's NOT okay for an airline to advertise their price for a seat, despite the fact that ZERO of the additional charges go towards them?
Certainly I understand that there's much more markup involved in the airline seat, but that markup is entirely taxes. It's not anyone is tricked here. It's not like you click on the $99 Orlando special, and BAM your visa shows $300 on it. |
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| geroin |
| quote: | Originally posted by failsafe
It's okay that Sears can advertise a $1000 mattress and not include the tax in the price.
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a $1000 mattress won't cost me $3000 when i go to check out |
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| kotsy |
| one thing at a time... let's get airlines under control first then tackle other taxed items |
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| patpicos |
| quote: | Originally posted by failsafe
So let me get this straight.
It's okay for McDonald's to advertise a $5.99 meal and not include tax in the price.
It's okay for Ford to advertise a $25,000 truck and not only omit taxes, but a load of extra costs that Ford tacks onto the price.
It's okay that Sears can advertise a $1000 mattress and not include the tax in the price.
It's NOT okay for an airline to advertise their price for a seat, despite the fact that ZERO of the additional charges go towards them?
Certainly I understand that there's much more markup involved in the airline seat, but that markup is entirely taxes. It's not anyone is tricked here. It's not like you click on the $99 Orlando special, and BAM your visa shows $300 on it. |
you are missing the point.
How often do you shop for a car or a mattress in comparison to a flight.
The fees on flights make it nearly impossible to do comparison from apple to apple. There are simply too many options.
Showing the full price up front will simplify the price checking process because you dont have to go 2-3 steps in the booking process to see the actual price.
imo, things like fuel surcharges should be directly in the ticket cost. Unfortunately, because that makes their price look higher, they make it as a charge.
With this change, everyone is on the same level. |
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| I_Am_Vince |
| We should have taxes and everything included in the price and just show the final price like in the UK. Price tag of 6 quid, I pay 6 quid. No need to calculate 13% on top or at a restaurant adding tip. A $20 menu item becomes $25 after tax and tip. |
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| The Ear |
| quote: | Originally posted by I_Am_Vince
We should have taxes and everything included in the price and just show the final price like in the UK. Price tag of 6 quid, I pay 6 quid. No need to calculate 13% on top or at a restaurant adding tip. A $20 menu item becomes $25 after tax and tip. |
That's b/c Scots suck at math dude. :toothless |
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| failsafe |
| quote: | Originally posted by devnull
With this change, everyone is on the same level. |
everyone was on the same level before. For an identical route, every carrier, no matter who, pays the same airport taxes, security taxes and just regular taxes.
So your toronto -> vancouver will always have been cheapest with the lowest advertised price. Regardless if it was with air canada, westjet, or some charter company. |
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| jester |
Montreal to Monterrey (roundtrip)
Air Canada - $1,118
American Airlines - $682
This is with the taxes and fees. Yet Air Canada flight is $436 more.
Goes to show, how ed we get with Air Canada. True, AA is bankrupt. So I wouldn't trust flying with them. So I'd be stuck flying with United which is $840. |
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| Cro_Addict |
| quote: | Originally posted by failsafe
So let me get this straight.
It's okay for McDonald's to advertise a $5.99 meal and not include tax in the price.
It's okay for Ford to advertise a $25,000 truck and not only omit taxes, but a load of extra costs that Ford tacks onto the price.
It's okay that Sears can advertise a $1000 mattress and not include the tax in the price.
It's NOT okay for an airline to advertise their price for a seat, despite the fact that ZERO of the additional charges go towards them?
Certainly I understand that there's much more markup involved in the airline seat, but that markup is entirely taxes. It's not anyone is tricked here. It's not like you click on the $99 Orlando special, and BAM your visa shows $300 on it. |
What?
On all those items (except car) I know it is 13% on top. For flights this is not the case. Fees/Charges are always different. |
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