Tagging Miles

Big time bloggers and Transparent Airfare Act

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For those of you who follow the larger points blogging world, and travel arena’s, its been an interesting week. As a result, I spent the last few days in retrospect. Big time bloggers and MS tactics I’m torn as I write this. Those that read TaggingMiles regularly know that I try to highlight stewardship, research, and caution with MS (here and here), and have made it a point not to be too detailed on techniques or particular “gigs.” Some have reached out to me privately, and I welcome that, it allows greater opportunity for a conversation, and to ensure that folks understand the risks. On Tuesday, Brian posted something that was viewed by many as over the line. I attempted to weigh in with my thoughts as well. Here was the last exchange:

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His argument, was that he was only sharing public information to save many people money, and make many points. I don’t disagree with those points. The problem that I saw, was that he didn’t really highlight the risks (account shutdown for example). My point was not necessarily that he was killing a deal, but rather putting out a carrot without highlighting that it might in fact have a string attached. I get it. His job is to provide content that will generate revenue through clicks and credit card sign-ups. As I commented on Matt’s post, I think of this as slaying bison from the train car. As the story of the bison hunting went, eventually, changes happened. Marathon Man may be our “Buffalo Bill.” I think Matt made an even better point than I could make on the risks, just don’t get distracted by the title.

All of those new MSers' with AP accounts shut down.

All of those new MSers’ with AP accounts shut down.

Pending legislation may impact how airline fares are displayed/advertised Joe wrote Thursday about how the Transparent Airlines Act was approved by the US House of Representatives on Monday, 28 July 2014. The industry lobbying group Airlines for America (A4A) has a graphic I actually like that shows how much the industry is taxed. trasparent airfares act pic So, while Joe played the even, unbiased writer, I’m not. I don’t believe the fact that air transportation is taxed at 21% makes the Transparent Airlines Act right. I think Seth at Wandering Aramean has it best summarized. In a nut shell, Seth highlights that airlines can show what the government taxes and fees are presently:

there is absolutely nothing preventing the airlines from identifying that split at any point in the fare advertising process, so long as they also show the full fare. Many airlines already do show the split on their websites as part of the process. These four all show the numbers before a customer clicks off the search results page:

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Joe and I have made a point to highlight regulatory / tax related topics occasionally, such as the transparency act, TSA’s new overseas electronic device restrictions and increased September 11 fees, because we feel that it is important to be aware of them. I just wanted to put a finer point on this one, because the traveling public has become acclimated to seeing prices a certain way, and this will upset the proverbial apple cart. Conclusion As I said before, its been an interesting week. As I think more about my interaction with Brian, the thing that frustrates me the most is not that he “outed a deal” – he didn’t, I think we can all agree, its been out there. I don’t know how many followers or subscribers Brian has, but I would guess its more than 40,000. I think there’s a subset of them that may be harmed by this, and not because Brian is getting credit card sign-ups. I’ve made it a point to focus on research and the scientific method. I further proposed a nearly academic analogy of Manufactured Spend to Maslow’s Hierarchy of Needs. The point is, for folks to be successful at MS, you need to be at that point where you can take a few breadcrumbs and figure out how to recreate–or better–bake the loaf. Perhaps the most important “trait” of MSers is creativity. That said, I’m still trying to figure out what the real answer is on the MSing posts, and I’ll be following the Airline Transparency Act in the hopes that the Senate knows the definition of “transparency.”

Ed. Note: The Tagging Miles Sunday Editorial is a weekly reflection of the authors opinions. Opinions expressed here are author’s alone, and do not necessarily reflect those of Saverocity.com, or any blogger in the Saverocity family of blogs. No compensation nor incentive was given to mention or link to any product or service in this article.

What the Transparent Airfares Act of 2014 Means for You

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Since March, the travel community has been watching the proceedings around H.R. 4156, better known as The Transparent Airfares Act of 2014. In what some are calling a sneaky move, the bill was placed on the suspension calendar earlier in July. And on Monday, July 28, the House of Representatives passed the Transparent Airfares Act by a verbal vote, not requiring a vote count from the floor. With a simple majority, the bill will move on to the Senate for another vote, before ending up on the President’s desk to be signed into law.

Both sides have their reasons for being for or against the Transparent Airfares Act. More importantly, both sides want you to believe that the future of the bill will change the way we fly forever.

A Brief History of The Transparent Airfares Act

The Transparent Airfares Act was introduced to the House of Representatives on March 6, 2014. The bill was introduced by Rep. Bill Schuster, a Republican from Pennsylvania, and co-sponsored by a bi-partisan group that includes Democrats Peter DeFazio, Rick Larsen, and Nick Rahall, as well as Republicans Tom Graves and Frank LoBiondo.

The bill went to the House Transportation Committee, and sold as a clarification of the 2012 Department of Transportation mandate that required airlines to advertise airfare with taxes and fees included.  The bill was presented under the auspices that “Virtually all consumer products are sold at a base price, with taxes added on at the point of purchase… H.R. 4156 will allow air carriers and ticket agents to display the actual cost of air travel in a clear and transparent way–enabling passengers to see the base airfare as well as the government-imposed taxes and fees.” Without a hearing on the bill, the Transportation Committee recommended the bill for passage without amendment.

Who Supports The Transparent Airfares Act

Several organizations, including the U.S. Travel Association, Airlines for America (the advocacy group for the American air carriers), and the National Taxpayers Union have expressed their support for the passing of the Transparent Airfares Act. The proponents of the bill tout that having the additional transparency would allow travelers to make better decisions when it comes to their travel. Additionally, travelers would be able to fully understand how much of their flight is the airfare, and how much is taxes.

In a release sent immediately after the House passage of the Transparent Airfares Act, Airlines for America wrote: “…nearly $63, or 21 percent, of a typical $300 domestic round-trip ticket is actually federal taxes and fees in disguise. Under current law, many consumers shop for travel, unaware how the higher TSA fee or the other federally imposed taxes are impacting their advertised airfare prices.” Each of the proponent groups agree that the bill would provide travelers the transparency they deserve, so they can understand where their taxes and fees are going.

Who Opposes The Transparent Airfares Act

Many travel and consumer watchdog organizations, including the American Society of Travel Agents, have expressed their dissent for the Transparent Airfares Act. Opponents say that allowing the bill to pass would allow airlines to advertise deceptively low airfares that would bait the traveler into buying into a price that doesn’t exist.

American Society of Travel Agents CEO Zane Kerby said in a release: “This bill would allow airlines to deceive travelers about the actual cost of a flight, a fight they already lost in 2012 when the Department of Transportation put rules in place to prevent precisely this situation…There is no evidence of consumer harm under the DOT rule, only benefits for the traveling public.” The opponents agree that not being able to compare full airfare could ultimately hurt the public and their travelers through unnecessary expenses.

What Can You Do About The Transparent Airfares Act?

Having passed through the House of Representatives, the bill now moves to the United States Senate for debate, and ultimately a vote that could send The Transparent Airfares Act to the President. It is important to let your Senator know where you stand on the bill with a letter, phone call, or e-mail. Regardless of what side of the bill you stand on, it’s vital that every traveler get involved in this important bill that could have monumental effects on how we fly.

Where do you stand on The Transparent Airfares Act? Let me know where you’re at in the comments below!

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