United Passes Fees To Agents

United Airlines has decided to pass on credit-card fees to travel agents when customers book their trips with said agents. The airline threated a $75 per ticket penalty to agents who charge the fee to United’s account. Increasing the cost of operations for agents has caused a ground swell of opposition. Agents claim that customers will eventually bear the burden of the shift if other airlines follow United’s lead. Earlier in the year, United Airlines made headlines by deciding to charge larger passengers for two seats instead of one.
United Airlines © Matt Hisnta

It’s not a surprise that airlines are beginning to shift fees to travel agents. The industry is struggling with the downturn in the economy. In this case, agents are most likely correct in predicting that fees would eventually be passed on to consumers. It has become a pattern in the airline industry to use fees to keep airline tickets low in search engines, but keep the same profits coming in.

Is the shift in fees from airlines to agents and travelers a smart policy?

 

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