Friday, August 28, 2015

Car Rental Taxes and Fees Going Haywire

Socking travelers with exorbitant taxes and fees has become a sport.  Airlines, hotels and car rental companies are now cash cows for cities, states, municipalities, airports for revenue generation.  Travelers do not vote in the places they visit, so they have become easy targets. For international airline tickets, taxes and fees are often higher than the "base fare" of a ticket.  Airlines have added their own surcharges since they only pay taxes on base fares.
Car rental companies taxes and fees are approaching parity with the "base" rental rates.  On a recent example, we requested a quote for a passenger needing a car in Austin, Texas, one of the lower jurisdictions for taxes and fees in the country, and were quite surprised to see this breakdown:

Taxes & Fees

Here is a breakdown of the estimated taxes, fees, and surcharges that apply to your reservation when you pick-up your rental car:
Weekly Rate (2 x $144.90)          $289.80
Airport Concession Fee35.97
Local Tax66.46
CUSTOMER FAC FEE83.30
VEH LICENSE FEE28.00
ENERGY RECOVERY FEE6.00
Total Taxes, Fees and Surcharges219.73
Grand Total: $509.53

"Vehicle License Fee"?, "Energy Recovery Fee"?, "Customer FAC Fee"? These names actually make the airlines look good!  How about a "Steering Wheel Fee"? or "Tire Tread Fee"?
www.premieretravel.com

Tuesday, August 25, 2015

The 3 Gulf Carriers Nobody Talks About

Emirates, Qatar and Etihad  (AKA: EQE) have been the three carriers making the headlines lately.  Expanding aggressively worldwide with new fleet of planes, state of the arts facilities and excellent amenities and on board services, these carriers have taken the lead in opening up new markets and giving passengers attractive choices.

In the same geographical area, well endowed, but keeping low profiles, three other gulf carriers are only there to serve limited markets and without the fanfare and the frills of the EQE.
Kuwait Airways is not known for great on board service and they have not attempted to bring their brand to the 21st century as evidenced by their logo.  Gulf Air had the opportunity to shine in the eighties but chose not to expand even though they were the largest "gulf" carrier then.  Finally Saudia is the most serious of all. No fun, no alcohol served, and ultra conservative in the way they operate.  All 3 carriers are averse in having connecting passengers through their airports, a key point in the success of the EQE. www.premieretravel.com

Monday, August 17, 2015

FAA Software "Upgrade" Grounds over 1200 Flights

The FAA, notorious for shooting itself in the foot, claimed another act over the weekend.  While the FAA did not disclose the nature of the problem that grounded hundred of flights Saturday and Sunday,  the likelihood of a software upgrade glitch remains the probable cause.
The FAA's seemingly endless string of glitches continues as the NEXTGEN satellite upgrade, well behind schedule, inches on with costs of over $40 Billion.
www.premieretravel.com