Should the government step in to regulate airline "junk fees?" #Airlines
Why the Govt Must Intervene on Airline “Junk Fees”
Over the years, the evident advantages of air travel, coupled with its exceptional convenience in specific scenarios, have led to a significant increase in the number of Americans choosing to fly. Since 2020 alone, there has been a 111% rise in air travel preferences. It's foreseeable that these numbers will continue to surge in the years ahead.
However, for those who frequently embark on air travel, you may have noticed at least once that the initially perceived ticket price doesn't match the final amount you pay. Often, an airline "junk fee" has been included in the charge. To clarify, junk fees are concealed costs or charges that emerge after a product or service decision is made, often just before purchase. In some instances, these charges only come to light post-purchase.
Recent evidence suggests that Americans are frequently subjected to these hidden fees, often more frequently than they realize. Consider this: a White House report from June 2023 unveiled that Americans collectively pay up to $65 billion in junk fees annually.
Notably, the airline industry stands as the third-largest contributor to this issue in the country, accumulating nearly $6 billion in such fees each year.
This prompts the question: what steps can be taken to address this situation? Unfortunately, there is not much an individual consumer can do alone. Boycotting a product or service entirely, while feasible in other contexts, does not hold the same influence as it does with air travel.
Despite alternative travel options, not all are viable, particularly when long distances and speed are necessary. Consequently, the most viable course of action is for the government to intervene and effectively tackle this issue of recurring junk fees.
As the embodiment and protector of public interests, it's appropriate for the government to step in and address this issue promptly. However, it's important to not only have authorities intervene, as President Joe Biden is attempting, but also to execute this intervention correctly. Incorrect action can have dire consequences, particularly straining the aviation industry and leading to increased costs for accessing the same services.
While an immediate solution might involve a complete ban on airline junk fees, there's a possibility that this approach could exacerbate problems. The aviation industry is highly competitive and operates on thin profit margins, making an outright ban likely to worsen the dynamics.
Hence, the Junk Fee Prevention Act makes practical sense on paper. Rather than eliminating junk fees indiscriminately, this legislation mandates that airlines and related service providers fully disclose all charges associated with their services. This way, consumers have a transparent understanding of the total cost of the services upfront, including mandatory fees, taxes, and other expenses.
This legislation aligns with the sentiments expressed by Reps. Alexandria Ocasio-Cortez, Chris Deluzio, and Jan Schakowsky in a letter to House colleagues, asserting that consumers deserve upfront price transparency to prevent surprise fees and enable easy comparison shopping.
President Biden echoed these sentiments by acknowledging that while junk fees may not significantly impact the wealthy, they can be a burden for the majority of Americans, for whom budgets are often meticulously planned.
The fundamental truth remains: it is counterproductive to engage a service without knowing its full cost until a point of no return. While some might be able to afford unforeseen expenses, many individuals budget their finances meticulously, deserving a clear picture of the precise costs instead of being caught off guard.
The longer we tolerate these practices, the further we move away from critical factors like price transparency in airline tickets. Despite various potential solutions, involving the government and correcting the situation appears to be the most feasible, effective, and sustainable approach.
The accessibility and ease that everyday Americans associate with air travel hinge upon it.