Qantas Accused of Price Gouging

[kangarooflyer88]

Just thought I'd share a story I came across on 9News regarding allegations that Qantas may have been charging customers more due to them having a positive PCR test for those on the forum to discuss further. To be honest, I'm surprised they even managed to get any customer service given the times we're living in. That being said, it does seem a bit underhanded to penalize someone for doing the right thing and self-isolating upon getting a positive PCR test. Less scrupulous people may very well have gotten another test until they received a negative result so they can board.

-RooFlyer88

 

[transpactraveller]

Surprised they didn't claim this was IT error and quietly change it, instead their statement doubles down that they're intentionally inflating the price for people who are rebooking from credit vouchers?

Edit: Are other airlines doing this as well? A quick check of BA's policy suggests not - you can cancel for any reason, get the full amount back, and use it to pay any other fare.

 

[MEL_Traveller]

If NP comes up with a recipe for raw prawn we’ll no doubt be getting them inflight as well

 

[madrooster]

I suspect the issue here is the 'base fare must be equal or higher value than the original base fare' rule is in play. QF reinstated this rule last year I believe for tickets issued on/after 1st Oct.

If they originally paid for a higher fare and want to use the credit for a cheaper date later, then they get stuck with paying the higher fare.

Assuming that this is the scenario, then QF hasn't done anything wrong.

It's listed here: https://www.qantas.com/au/en/manage-booking/credit-vouchers.html

Edit: Are other airlines doing this as well? A quick check of BA's policy suggests not - you can cancel for any reason, get the full amount back, and use it to pay any other fare.

VA has never cared about the new flight being equal or higher value, both now and pre-covid. Their travel bank system, a feature of Sabre, is very good.

SQ you can use the credit across two bookings.

BA and AA you can use the credit across multiple bookings.

QR, JL and NH will refund all tickets, regardless of reason, in full.

LH/LX/OS/SN require equal or higher value unless it's a flex fare then you're allowed to go down in value.

 

[kangarooflyer88]

VA has never cared about the new flight being equal or higher value, both now and pre-covid. Their travel bank system, a feature of Sabre, is very good.

SQ you can use the credit across two bookings.

BA and AA you can use the credit across multiple bookings.

QR, JL and NH will refund all tickets, regardless of reason, in full.

LH/LX/OS/SN require equal or higher value unless it's a flex fare then you're allowed to go down in value.

But what about NZ?

-RooFlyer88

 

[madrooster]

But what about NZ?

NZ is by far the worst - LCC standard. No refunds even if the flight was cancelled by them (except if it involves USA). Their credits work much like VA though.

 

[kangarooflyer88]

I will point out an old adage I have, never cancel your flights until the very last moment. Don't give the airline any courtesy by cancelling in advance even if you know you won't go. Let the airline make an unforced error be it them cancelling them flight or making a significant enough change where the ticket becomes fully flexible. Aside from free cancellations 24 hours after booking on some airlines, I have yet to see a single airline that provides any benefit to cancelling right away over cancelling an hour or two before the flight takes off. Even if nothing happens and you have to cancel outright at the last minute, you get the pleasure of knowing you held one of their seats until the very last minute.

-RooFlyer88

 

[MEL_Traveller]

I suspect the issue here is the 'base fare must be equal or higher value than the original base fare' rule is in play. QF reinstated this rule last year I believe for tickets issued on/after 1st Oct.

If they originally paid for a higher fare and want to use the credit for a cheaper date later, then they get stuck with paying the higher fare.

Assuming that this is the scenario, then QF hasn't done anything wrong.

It's listed here: https://www.qantas.com/au/en/manage-booking/credit-vouchers.html

Nothing wrong legally... but ethically?

QF demands 100% flexibility from its passengers to cancel flights, cancel routes, determine how much and when they will refund you, the ability to substitute planes, cabins and services... yet if the passenger needs flexibility through no fault of their own they stand to lose significantly.

The contractual protections and special rights which the airlines have claimed - and Aussie law supports - date back to the days of DC3s and the difficulty of airline operations 50 years ago.

 

[kangarooflyer88]

Not sure if everyone watched the Current Affairs video linked in the article nor the official video response from a QF representative, both of which were equally amusing. In particular, I call your attention to one customer who had the joy of spending 12 hours on hold to rebook his overpriced fare over the phone with QF since it couldn't be booked online. Now that's what I call customer attention!

I will say that QF is not the only Australian airline with similarly restrictive policies. In particular, I had a return segment on UA from March 2020 that had to be cancelled due to COVID. Agent on the phone told me I could rebook anytime I wanted back to LHR so long as travel commenced before March 2022. Fast forward to October and I'm now told they had to reprice and surprise surprise the return segment was $5,000 fare more than the $1100 I paid for LHR > SYD return on UA.

-RooFlyer88

 

[aikman]

Meh. This won't put a dent on QF's reputation. Most flight credit holders will quietly use up their credits on the higher priced fares. Nothing will change.

As the man in the video who spent 12 hours on hold said, "We support them. We always fly Qantas."

Qantas seems like it has the most deeply loyal customers in the world.

 

[madrooster]

I have yet to see a single airline that provides any benefit to cancelling right away over cancelling an hour or two before the flight takes off.

This is incredibly poor advice.

Depending on the fare and/or carrier, no show fees may apply, including losing the entire ticket value when cancelled less than X hours before departure. It's designed to stop exactly what you describe.

Until Aus opened up in Nov last year, QR considered a cancellation within 72 hours of departure to be a no show where a no show fee would apply.

Some carriers don't let you leave a ticket in credit either so you are forced to move it to a new date at the time that you cancel or you lose the ticket value.

Nothing wrong legally... but ethically?

That is exactly why I specifically wrote legally. Morally, ethically, etc ... I don't agree with the rule being reinstated especially when VA will allow you to go to equal, higher or lower fare. VA even lets you use a credit for someone else to travel. Most other carriers don't allow a name change.

 

[astrosly]

I will point out an old adage I have, never cancel your flights until the very last moment. Don't give the airline any courtesy by cancelling in advance even if you know you won't go. Let the airline make an unforced error be it them cancelling them flight or making a significant enough change where the ticket becomes fully flexible. Aside from free cancellations 24 hours after booking on some airlines, I have yet to see a single airline that provides any benefit to cancelling right away over cancelling an hour or two before the flight takes off. Even if nothing happens and you have to cancel outright at the last minute, you get the pleasure of knowing you held one of their seats until the very last minute.

-RooFlyer88

This can actually go against you if you are unable to contact the airline to cancel the ticket because it couldn't be done online and they are too busy to answer the phone. That happened about a year ago where I wanted to cancel a flight with REx about 2 days before the flight because I was no longer flying and could put my ticket into credit for a fee which was cheaper online but their website didn't not give me the option (even though it was advertised I could and should) but every time I called over those two days I couldn't get through to anyone at REx to cancel the ticket. So I lost $125 because I was unable to contact the airline to cancel as per the conditions offered with the fare.

 

[Lynda2475]

Hence why now that Travel Passes are available and you should insist on a TP which doesn't have the higher price fare rule attached, if you do not feel you will be able to use the flight credit on a more expensive trip later. Where a flight credit is issued you can call up and ask for it to be converted to a TP (many here on AFF have done so).

But also other ways to prevent this such as don't cancel your flight if you get covid, instead reschedule it (changes are free atm). If you do cancel, you don't have to use your credit if there are cheaper flight available, buy them and save your credit for another trip.

And if its international travel, make sure you have travel insurance, then it will cover the gap of cost for rebooking to get home should covid see you delayed overseas (provided of course you choose your policy wisely).

 

[kangarooflyer88]

This is incredibly poor advice.

Depending on the fare and/or carrier, no show fees may apply, including losing the entire ticket value when cancelled less than X hours before departure. It's designed to stop exactly what you describe.

Until Aus opened up in Nov last year, QR considered a cancellation within 72 hours of departure to be a no show where a no show fee would apply.

Some carriers don't let you leave a ticket in credit either so you are forced to move it to a new date at the time that you cancel or you lose the ticket value.

This can actually go against you if you are unable to contact the airline to cancel the ticket because it couldn't be done online and they are too busy to answer the phone. That happened about a year ago where I wanted to cancel a flight with REx about 2 days before the flight because I was no longer flying and could put my ticket into credit for a fee which was cheaper online but their website didn't not give me the option (even though it was advertised I could and should) but every time I called over those two days I couldn't get through to anyone at REx to cancel the ticket. So I lost $125 because I was unable to contact the airline to cancel as per the conditions offered with the fare.

I suppose it definitely depends on the airline's policies and customer services. However, from my experience, things have always worked in my favour when I waited to the last moment. Case in point I had several flights booked for March 2020 to attend a conference in Europe on RyanAir, Malaysian and Alitalia. All of them were cheap one ways with no refunds or cancellation. When COVID hit rather than cancel on my end, I waited for them to do me the favour. Sure enough a week before my flights were to depart I had RyanAir and Alitalia cancelling (with no alternates available so refund) with Malaysian cancelling my original flight and having me fly out the next day. I contacted Malaysian and explained that new time wouldn't work for me and I'd like a refund. Sure enough I got a refund on all these flights. Had I cancelled to get a credit (or worse) I would've been out all that money. Even if I got "credit" for the flight, it remains to be seen whether I'd ever use it given the limited expiry of such credits.

-RooFlyer88

 

[encryptededdy]

Where a flight credit is issued you can call up and ask for it to be converted to a TP (many here on AFF have done so).

Unfortunately in my experience this doesn't work for tickets issued after Oct 1, where there hasn't been a change to the flight by Qantas.

As for the topic of this, yeah I do wish Qantas would just change their policy to always issue a TravelPass. I assume the only reason they don't is to stop people re-booking the same trip if a fare goes on sale.

 

[Lynda2475]

Unfortunately in my experience this doesn't work for tickets issued after Oct 1, where there hasn't been a change to the flight by Qantas.

Which is why travel insurance exists.

If airline cancel you will get a refund or a flexible Travel Pass.

If you get Covid (or another injury) then you claim the difference in costs on your travel insurance, there are ones with $0 excesses available. Or as I said you reschedule (as changes are currently free) and avoid a credit altogether.

 

[madrooster]

Sure enough a week before my flights were to depart I had RyanAir and Alitalia cancelling

This is a VERY different scenario to leaving it to a day or two before departure. Waiting until a few days prior makes absolute sense, but waiting until the day before or day of, is poor advice.

 

[AIRwin]

Complaints about credits:

Qantas accused of 'price-gouging' after consumers pay triple for flights using credits over cash

Evidence including emails, videos and screenshots supplied to the ABC suggests that prices for the same flights were jacked up when a customer used a flight credit or voucher.

www.abc.net.au

 

[Seat0B]

I know it is in the conditions that you can only use the credit for a higher priced fare, but that is really a pretty savage condition that takes advantage of Qantas's market power relative to the low power of the consumer. Also, I think most people are not aware of what this really means until it is time for them to try to use the credit. I really wonder if this is enough to amount to unconscionable contract (I am not a lawyer, just feels like it to me as a lay person). And yes I know that people have the choice (sometimes) to use a different airline.

Pre COVID, I purchased a very expensive Business Class ticket to the USA for a trip that was supposed to be a combined work + holiday trip. The work part got cancelled at last minute, and for various family reasons associated with ill health of elderly parents, I was unable to travel for the leisure part, so I put it into credit.

When I went to use the credit, air fares had fallen so much that the credit was more than the most expensive business class ticket to anywhere in the world. So my only option at that time to use the credit of over $10,000 was to upgrade to First at a further very high cost. I said that therefore I would just have to cancel the credit even though I would not get a refund.

I was extremely lucky that I got a sympathetic agent who said that was ridiculous outcome, and they would just extend the credit by another year for me. It probably helped that at the time I was a WP and well on my way to becoming a P1, which I did achieve shortly after the phone call. Anyway, another year passed and I was still unable to fly before the credit expired, but fares had crept up a bit, new routes had opened up, and so on the last day of credit, I booked for 12 months out, paid only a few hundred dollars for the new fare and ultimately had a wonderful holiday trip 3 years after I originally intended to go.

That was one good experience, and it certainly taught me a lesson. If I think there is any risk at all that I will need to cancel a ticket, I now buy a fully refundable ticket. Then if something good comes up, I can buy that and cancel for a refund. It does mean that there is a timing difference in the cash flow, but fortunately, I can sustain that.

 

[MEL_Traveller]

I think if they say the credit has to be used for a fare of equal or greater value it kind of implies there might be a fare of *equal* value… not the next fare class up which could be hundreds of dollars more?