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Category: Financial / Topics: Knowledge

Hidden Fees

by Dan Seagren

Posted: October 9, 2011

Not all fees are hidden, thankfully. On the other hand…

Not all fees are hidden, thankfully. On the other hand, maybe it is better in some cases to be ignorant. However, there are a lot of hidden fees. It is not our intention to defend or debunk these fees. Nor can we avoid them and we often wouldn't dare think of not paying for them.

To illustrate, my wife and I are privileged to have a son and daughter in the travel business which is notorious in some ways for hidden fees. Here is an example of what recently crosses my desk but did not come from either one of our children.

Unless otherwise indicated, companies listing fares on Xxxxxxxxx may not include all applicable taxes, charges and government imposed fees. The following overview has been prepared to give you an idea of what additional fees and taxes may apply.

Passenger Facility Charges: Passenger Facility Charges (PFCs) of up to $18.00 USD may apply depending upon the itinerary chosen.

Federal Excise Tax/Segment Fee: A federal excise tax or segment fee of up to $3.70 USD does apply per flight segment, if this tax is not included already in the advertised fare. A flight segment is defined as one takeoff and one landing.

September 11th Security Fee: A September 11th Security Fee of $2.50 USD applies per flight segment. A flight segment is defined as one takeoff and one landing.

U.S. or International Departure and Arrival Charges: U.S. or international government imposed taxes and fee of up to $200.00 USD may apply depending upon the itinerary chosen.

Shipping & Handling Fees: Some travel companies or their agents may impose shipping and/or handling fees if you request paper tickets or for certain types of transactions.
Service Fee: Companies listing offers on Xxxxxxxxx may charge a service fee.

Itinerary Changes/Cancellations/Refunds: Itinerary changes, if permitted for the fare, may have a change fee of up to $150.00 USD that will vary by market, carrier and specific fare rule.

You may notice that nothing above included fees for blankets, pretzels, baggage or use of the restrooms, non-alcoholic beverages, excessive girth (often uncharged) and others. A recent report showed how lucrative it was in 2010 for baggage charges. Of course, people will carry on baggage to avoid the fee which often clogs overhead bins making it tough on standbys and late comers.

This is not only a lament but a fact of life. Still, it may be cheaper to go from New York City to San Francisco by bicycle. Perhaps paying fees isn't all bad.



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Dan Seagren is an active retiree whose writings reflect his life as a Pastor, author of several books, and service as a Chaplain in a Covenant Retirement Community.

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Posted: October 9, 2011

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