Qantas says Jetstar doesn't levy credit card surcharges - but a 'comfort fee'

[MEL_Traveller]

Yup - you heard it right - Qantas says there is no such thing as a credit card surcharge with Jetstar. But rather it's a 'comfort fee'.

Qantas defends credit-card ‘surcharge’ as being a ‘comfort fee’

And here's some nice spin, Qantas says:

“Qantas significantly under-recovers its total cost of card acceptance through its card payment fees,”

notice the 'total' cost? Like... we're paying for people in other countries on whom we don't levy recovery costs?

 

[medhead]

I thought it was called a convenience fee. Either way one has to wonder if this is legal. Both convenience and comfort should be an integral part of the good or service. I thought there was a legal requirement to state the full price upfront.

As for the total cost thing. Already been discussed, but it's true. Qantas makes people buying the cheapest fares subsidise those on the most expensive fares. Someone of a $599 fare to Singapore faces the same $30 fee as someone on a $15000 first class fare. $59 domestic fare - $7, $729 domestic business fare - $7. That in Australia not even getting into other countries.

 

[Mattg]

They're kidding right??? Knowing the airline is ripping me off doesn't make me feel "comfortable" :!:

Also, wouldn't in be fairer (and simpler) if the credit card surcharge was a percentage of the actual fare paid?

 

[JohnK]

Comfort fee? Convenience fee?

Are the accountants at Qantas not being paid enough and are overworked to be able to determine all costs to be included in airfares?

If Singapore Airlines can include $25 "convenience fee" on all airfares sold in Australia then Qantas can do the same thing.

Credit card surcharge. Fuel surcharge. Scam. No other way to describe it.

 

[Mr_Orange]

Yup - you heard it right - Qantas says there is no such thing as a credit card surcharge with Jetstar. But rather it's a 'comfort fee'.

Qantas defends credit-card ‘surcharge’ as being a ‘comfort fee’

And here's some nice spin, Qantas says:



notice the 'total' cost? Like... we're paying for people in other countries on whom we don't levy recovery costs?

That has got be one of the funniest things I have read in some time. So what extra 'comfort' does the $8.50 get me exactly????

 

[Buzzard]

Yup - you heard it right - Qantas says there is no such thing as a credit card surcharge with Jetstar. But rather it's a 'comfort fee'.

Qantas defends credit-card ‘surcharge’ as being a ‘comfort fee’

And here's some nice spin, Qantas says:



notice the 'total' cost? Like... we're paying for people in other countries on whom we don't levy recovery costs?

It gave me "comfort" - comfort that they didn't rip, er I mean charge me $10!

Next they'll have a new slogan. Get a Grip, Get a Comfort Grip.

 

[medhead]

I think I'm going to email them to ask how I can pay cash dollars, since I don't need the comfort.

 

[juddles]

Someone in this thread needs to take the QF side - so I will.

I have absolutely no problem with the fee. It is, like every single other fee and charge, part of the overall revenue of the airline. They need to make a profit, which is not easy in the airline industry. In a field where "everyone" has little add-ons, and so forth, and every customer can instantly compare "fares" online, it would be financial and business suicide for QF to simply advertise the full and final cost of a ticket.

 

[Mr_Orange]

Someone in this thread needs to take the QF side - so I will.

I have absolutely no problem with the fee. It is, like every single other fee and charge, part of the overall revenue of the airline. They need to make a profit, which is not easy in the airline industry. In a field where "everyone" has little add-ons, and so forth, and every customer can instantly compare "fares" online, it would be financial and business suicide for QF to simply advertise the full and final cost of a ticket.

Err, no, it is the law that they have to advertise the full and final fare!

 

[Mattg]

Someone in this thread needs to take the QF side - so I will.

I have absolutely no problem with the fee. It is, like every single other fee and charge, part of the overall revenue of the airline. They need to make a profit, which is not easy in the airline industry. In a field where "everyone" has little add-ons, and so forth, and every customer can instantly compare "fares" online, it would be financial and business suicide for QF to simply advertise the full and final cost of a ticket.

Sorry but I don't agree that the credit card surcharges should be revenue for the airline. The credit card surcharge should accurately reflect the transaction cost of paying by credit card. A credit card fee should not be revenue for the airline. If they want to make more money, they should increase fare prices and advertise the full price upfront. I do agree that it wouldn't be fair if one airline did this and not the others, but they should all be forced to do this - then the playing field would still be level.

 

[juddles]

.... Qantas makes people buying the cheapest fares subsidise those on the most expensive fares. Someone of a $599 fare to Singapore faces the same $30 fee as someone on a $15000 first class fare.....

medhead, are you serious? you think that discount Y fares subsidise full F fares??

I do see your point that the fee is the same no matter what the fare price is, and I can understand that an argument could be made for having percentage-based fees. But claiming that the poor subsidize the rich people's luxury air travel is a bit over-the-top left wing, even for you

 

[juddles]

.... The credit card surcharge should accurately reflect the transaction cost of paying by credit card......

Why? QF are not claiming this is a fee to recover the cost of a cc transaction. If they were claiming that, then I would agree with you. But QF are openly stating it is a charge for the purchase method overall, not the actual cost of the transaction.

 

[MEL_Traveller]

medhead, are you serious? you think that discount Y fares subsidise full F fares??

I do see your point that the fee is the same no matter what the fare price is, and I can understand that an argument could be made for having percentage-based fees. But claiming that the poor subsidize the rich people's luxury air travel is a bit over-the-top left wing, even for you

As far as I'm aware, it's fact.

Qantas determines their total world-wide credit card fee liability, and divides that amongst tickets purchased from Australia.

A first class passenger with a $12000 fare should be paying $120 (well, probably a lot less because Qantas would have negotiated special deals with CC providers, but for the sake of simplicity, let's assume 1%).

But the first class passenger doesn't pay that, they only pay $30. So where does the shortfall of $90 come from? It comes from the economy class passenger who has paid $30 in fees on a $1800 booking... with a 'profit' to Qantas of $12.

 

[Mattg]

Why? QF are not claiming this is a fee to recover the cost of a cc transaction. If they were claiming that, then I would agree with you. But QF are openly stating it is a charge for the purchase method overall, not the actual cost of the transaction.

If the fee is charged because I'm paying by credit card, how is it not a credit card fee? Their attempts to claim otherwise are IMHO nothing more than an attempt to stop the RBA from cracking down on the practice, and their argument doesn't really hold water for me.

 

[juddles]

Yup - you heard it right - Qantas says there is no such thing as a credit card surcharge with Jetstar. But rather it's a 'comfort fee'.

QF called the charge a "comfort fee" ?? No they didn't. That is a misrepresentation invented by the journalist. And that should be embarrassingly obvious to anyone who critically reads the article.

 

[juddles]

...Qantas determines their total world-wide credit card fee liability, and divides that amongst tickets purchased from Australia.....

Qantas are very clear that this charge is not a recovery mechanism for the credit card fees.

 

[MEL_Traveller]

QF called the charge a "comfort fee" ?? No they didn't. That is a misrepresentation invented by the journalist. And that should be embarrassingly obvious to anyone who critically reads the article.

That's actually what they did say.

Here's QF's quote, my bolding on the relevant sentence:

“Jetstar’s Booking and Service Fee (BSF) is a market based fee. It is not a cost recovery mechanism for a type of card payment and is not correlated to costs associated with credit cards,” Qantas said.
“The BSF is one of a variety of fees applicable in addition to Jetstar’s basic ticket price that allow its customers to choose the level of comfort and convenience they desire.”

Qantas could have said the BSF allowed customers to chose the level of convenience they require... but they didn't. They chose to include the words 'comfort' as well.

So the BFS is a fee for comfort. And convenience.

Hang on... two things??? Maybe they should charge double!

 

[JohnK]

Someone in this thread needs to take the QF side - so I will.

I have absolutely no problem with the fee. It is, like every single other fee and charge, part of the overall revenue of the airline. They need to make a profit, which is not easy in the airline industry. In a field where "everyone" has little add-ons, and so forth, and every customer can instantly compare "fares" online, it would be financial and business suicide for QF to simply advertise the full and final cost of a ticket.

The credit card surcharge is a rort. A scam. Cream to pay executive bonuses in tough times.

Purchasing aircraft is a cost of doing business. Fuel is a cost of doing business. Salaries are a cost of doing business. Catering are a cost of doing business. Maintenance is a cost of doing business. Office space is a cost of doing business. All included in cost of airfare.

Isn't collecting revenue a cost of doing business? Why have it separate as a surcharge? See my first sentence above.

 

[medhead]

Someone in this thread needs to take the QF side - so I will.

I have absolutely no problem with the fee. It is, like every single other fee and charge, part of the overall revenue of the airline. They need to make a profit, which is not easy in the airline industry. In a field where "everyone" has little add-ons, and so forth, and every customer can instantly compare "fares" online, it would be financial and business suicide for QF to simply advertise the full and final cost of a ticket.

The concept of the fee is not the issue. The problem is the weaselly naming of that fee. Or should that be misnaming, deceptive naming.

medhead, are you serious? you think that discount Y fares subsidise full F fares??

I do see your point that the fee is the same no matter what the fare price is, and I can understand that an argument could be made for having percentage-based fees. But claiming that the poor subsidize the rich people's luxury air travel is a bit over-the-top left wing, even for you

My comment is clearly related to the credit card fee only, as per the context and topic of this thread. You've made a mistake to assume I'm talking about subsidising the fare. Qantas' "total cost" line itself says that the cheap fares credit card fee subsidises the merchant cost on the expensive fares.

Someone paying $7 on a $59 fare is paying well over tote for the credit charge cost of the merchant, versus someone paying $30 on a $15000. A great proportion towards qantas' total cost of accepting card payments comes from those on the cheap fares. Qantas does separate credit card cost from the provision of service cost, creating a situation for considering these things in silos.

 

[Mattg]

As far as I'm aware, it's fact.

Qantas determines their total world-wide credit card fee liability, and divides that amongst tickets purchased from Australia.

A first class passenger with a $12000 fare should be paying $120 (well, probably a lot less because Qantas would have negotiated special deals with CC providers, but for the sake of simplicity, let's assume 1%).

But the first class passenger doesn't pay that, they only pay $30. So where does the shortfall of $90 come from? It comes from the economy class passenger who has paid $30 in fees on a $1800 booking... with a 'profit' to Qantas of $12.

How many of their passengers are actually first class passengers paying $15,000? And how many are actually economy passengers? By my calculations, there are 74 economy passengers for every first class passenger, across the entire international network where the $30 credit card fee is charged.