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Will $10 Holiday Surcharge Save Airlines or Tick Off Travelers?

By Barbara E. Hernandez | Sep 29, 2009

Airlines are planning a $10 surcharge for flights on Nov. 29, Jan. 2 and Jan. 3 (that’s the Sunday after Thanksgiving and the Saturday and Sunday after New Year’s Day, respectively.) The surcharge will already be placed in the fare ticket each way by American Airlines, with Delta, US Airways and Northwest airlines also following suit.

The new cost is just one of many new fees charged by airlines to create more revenue at the expense of  customer loyalty and service. So is this simply a case of price-gouging or good business?

“It’s not so much a surcharge as a quick way to upcharge for those premium days. Yes, it brings in a lot of sorely needed revenue to the airlines — but to the detriment of holiday travelers, who are already paying stiff fares for those high-traffic days,” said FareCompare.com chief executive Rick Seaney. Last year, air travelers had the last laugh by booking last minute and getting great fares, but industry insiders say that’s unlikely to happen this year.

Apparently the hefty holiday air ticket will be akin to hotels charging more on weekends, holidays or during conventions. I’d like to say that is unheard of, but it isn’t. When booking travel, some flights — namely those not leaving at 5:45 a.m or on a Wednesday — tend to be higher-priced, even if only by $10 to $25.

So far, Air Tran Airways, Southwest and Continental airlines have stated they are not matching the surcharge. I would advise them to publicize that fact and capitalize on holiday cheer — or at least on the falling Consumer Confidence Index.

Bay Area resident and award-winning business journalist Barbara E. Hernandez has covered tourism, real estate and personal finance. Her clients include the New York Times, Los Angeles Times, San Francisco Chronicle and Washington Post.

BNET User Analysis

Web Buzz:
  • More airlines are adding that $10 holiday surcharge

    Dallas Morning News - 57 days 21 hours 50 minutes ago

    Rick Seaney of FareCompare.com says that US Airways and Delta Air Lines/Northwest Airlines have joined American Airlines and United Airlines with a $10 holiday surcharge. People will face that $10 charge if they fly on Nov. 29, the Sunday after Thanksgiving, or on Saturday, Jan. 2, or Sunday, Jan. 3 -- all peak travel days. Writes Seaney:...

  • Late-night news -- a $10 post-holiday surcharge?

    Dallas Morning News - 58 days 13 hours 2 minutes ago

    FareCompare.com sent out an alert Thursday evening saying that two airlines -- United Airlines and American Airlines -- are imposing a surcharge. Here are the details from FareCompare's Graeme Wallace: "On Thursday's 8pm (EDT) airfare feed, United Airlines matched a move initiated by American Airlines on Wednesday. Both airlines are now...

  • Airlines Set a Premium Fee for Holiday Travel

    BusinessWeek - 58 days 20 minutes ago

    Posted by: Justin Bachman on September 25 A new $10 surcharge for three popular travel dates this winter could make visiting family more expensive. American Airlines (AMR) imposed a $10 charge on domestic flights for Nov. 29 (the Sunday after Thanksgiving) and on Jan. 2-3, the weekend that many people will be returning home from Christmas and/or...

  • You Have No One to Blame But Yourselves

    Aviation Week - 55 days 3 hours 36 minutes ago

    The United Airlines counter at BWI Airport.   Photo by Benet Wilson I was watching the NBC Nightly News last night and saw this piece on the moaning and kvetching about the $10 fee airlines are adding to ticket prices on flights flown Nov. 29, the Sunday after Thanksgiving, and Jan. 2 and 3.  The fee was created by American Airlines, and...

  • The truth about those controversial $10 holiday airfare charges

    Consumer Traveler - 54 days 2 hours 32 minutes ago

    Last week, several airlines added a $10 "miscellaneous" charge for flights on on Nov. 29, Jan. 2 and 3. -- those are the peak travel days after Thanksgiving and New Years. The news sent the travel blogosphere into something of a frenzy. My colleague Janice Hough this morning predicted the "holiday surcharge" was only the beginning of a new fee...

 

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