Qantas changing fares once booked

[Snowmoo]

Have booked a trip to Thailand in Jan with Qantas Holidays. We got a final price in a quote which we paid the deposit for.

Now they ring me up today and say the price that I originally put the deposit on has gone up.

Can they legally do this? I would think that based on my limited knowledge of contract law we agreed on a quote which we sealed in agreement by paying a 10% deposit. So how can they adjust the price once this has occurred?

It's a bit like putting something on lay-by and having the price go up whilst it is on lay-by. Imagine the uproar if Big W did this?

What's to stop them from advertising at a low price just to sucker you in knowing that they will put the price up anyway. Surely this is false and misleading advertising?

 

[Travel Guru]

Travel Wholesalers can indeed and regularly do put prices up which affects all bookings not paid in full.

Lately there have even been incidents with the drastic drop in A$ rate of some wholesalers trying to impose price hikes on fully paid bookings.

While as an agent i fully endorse wholesalers putting up unpaid bookings, the second I don't agree with.

Wholesalers will generally provide those with existing bookings the opportunity to pay by a certain date to avoid the rise, and I would certainly be asking QF Hols why they didn't provide that courtesy to you and insist they honour the original price because of it.

Unfortunately there's nothing illegal about increasing prices to stay ahead of currently fluctuations so all you can do is pay in full at the old price if given the opportunity or to wear the change.

Wholesalers couldn't get away with "suckering you in" as they'd be brought down pretty quickly, it's just a case of covering their losses with respect to the A$ drop.

Good luck with it

TG

 

[Snowmoo]

So what's a reasonable amount of time to pay in full?

They ring up today (Monday) and want it paid in full in Wednesday. I have no problem paying in full, just think ringing you up and saying to pay in full within 48 hours (or suffer the consequences) when the original pay in full date was 15th of December is a bit harsh.

Surely they can offer a bit better time of 48hrs to pay in full. I think most families would book these types of trips so that they can budget their holiday saving appropriately over a period of time.

And just like petrol I'm sure they wouldn't decrease the price if we booked at a lower $ rate and it went up.

 

[Travel Guru]

So what's a reasonable amount of time to pay in full?

They ring up today (Monday) and want it paid in full in Wednesday. I have no problem paying in full, just think ringing you up and saying to pay in full within 48 hours (or suffer the consequences) when the original pay in full date was 15th of December is a bit harsh.

Surely they can offer a bit better time of 48hrs to pay in full. I think most families would book these types of trips so that they can budget their holiday saving appropriately over a period of time.

And just like petrol I'm sure they wouldn't decrease the price if we booked at a lower $ rate and it went up.

It's a hard one because on one hand they're probably not legally obliged to notify you, but I would expect 5-7 days notice, which is what i've received with some other companies last week on Europe travel.

48 hrs is a bit tight, but I guess better than the alternative of no notice.

And you're right, they don't, thats half the argument against companies imposing price rises the second the $$ changes, especially on paid in full bookings which has never been heard of before, they're quick to recoup but never too quick to discount when the $$ is around .98

TG

 

[Snowmoo]

Yes the T&C says that the price can change even once we have paid in full. It is not guaranteed until 30 days before departure.

I should ask at what exchange rate (date) they are calculating and then if the exchange rate is higher on the 30th day before departure, ring them up and ask for a refund on the difference

 

[Hvr]

Yes the T&C says that the price can change even once we have paid in full. It is not guaranteed until 30 days before departure.

So has this ever happened to anyone? A fully paid fare and then told that you had to pay more? Seems very unfair.

 

[v8Statesman]

A fare I just purchased has jumped from $1,391 to a whopping $1,808. I have not been asked for the difference. Thank God!

 

[Snowmoo]

A fare I just purchased has jumped from $1,391 to a whopping $1,808. I have not been asked for the difference. Thank God!

Should read I have not "yet" been asked for the difference.

 

[JohnK]

So has this ever happened to anyone? A fully paid fare and then told that you had to pay more? Seems very unfair.

A few times an airfare has gone up while I have had it on hold but I have never been asked to pay more once an airfare has been paid for and ticketed. There is always a first time though....

 

[Dave Noble]

So has this ever happened to anyone? A fully paid fare and then told that you had to pay more? Seems very unfair.

That is the joy of packages rather than just buying a ticket. The T&Cs are quite different.

Dave

 

[Travel Guru]

I wouldn't expect an airline would come back asking for extra $$ once issued, it's certainly something I wouldn't take lying down.

Lately there's been a "few" reported instances of wholesalers requesting additional collections from fully paid pax though i've not had first hand experience myself.

Seems extremely unfair and goes against everything I believe in with regard to the protection of paying in full.

TG

 

[opusman]

Seems extremely unfair and goes against everything I believe in with regard to the protection of paying in full.

I don't really know how this segment of the industry works so I may be naive in suggesting this, but to me this seems extremely dodgy. I wonder if it's because these flights, even if fully paid for, haven't actually been ticketed yet - if the wholesaler was sitting on the funds to earn interest for a while before actually passing the money onto the airline?

Surely once the flight has actually been ticketed there can be no further adjustments made to price.

 

[Travel Guru]

I don't really know how this segment of the industry works so I may be naive in suggesting this, but to me this seems extremely dodgy. I wonder if it's because these flights, even if fully paid for, haven't actually been ticketed yet - if the wholesaler was sitting on the funds to earn interest for a while before actually passing the money onto the airline?

Surely once the flight has actually been ticketed there can be no further adjustments made to price.

I very much doubt if to be honest for the following reasons:

1. Ticket numbers have to be generated through to the agent making the booking in order to stop the booking auto cancelling

2. The interest gained would be quickly lost when they missed a TTL, had the booking auto cancel etc and had to pay a higher fare...mistakes like not ticketing can be extremely expensive to fix in the industry.

I haven't seen anyone suggest airlines are collecting additional funds once paid in full, only wholesalers, and it would be to cover the change in currency with the land portion which is obviously paid to the local operator in the local currency.

Lets hope this practice doesn't become wide spread, as an agent i'd find it extremely difficult to call a client who has paid in full and request more money, it just doesn't sit well with me.

TG

 

[oz_mark]

Lets hope this practice doesn't become wide spread, as an agent i'd find it extremely difficult to call a client who has paid in full and request more money, it just doesn't sit well with me.

I would also question whether it was a legally enforceable term.

 

[Travel Guru]

I would also question whether it was a legally enforceable term.

As would I, but given the tight margins for agents, who should have to wear it?

Hopefully it doesn't become widespread and the authorities stamp it out quick smart, it certainly won't do the industry any favours.

TG

 

[creeno]

Just saw this interesting & topical article in today's 'Travel Daily':

MOST wholesalers increasing prices due to the plummetting Australian dollar have at least given agents a little warning (TD Fri), but this is a bit much.

Mexico specialist wholesaler Pulse Holidays is levying extra charges on bookings fully paid some weeks ago, outraging agents who claim the practice is wrong.​

Pulse Holidays, not to be confused with well-known Brisbane boutique corporate agency Pulse Travel, offers packages to Mexico, Cuba and Jamaica and is based in Kenmore in western Brisbane. Stuart Ingram, of Victorian agency Beaumaris Travel centre, told TD yesterday that his firm had paid in full for a Mexico package through Pulse on 29 Sep.​

However yesterday he was advised that his clients now need to pay a further currency-related surcharge of a whopping $1530. Ingram said a Pulse consultant advised that “travel agents need to be more aware of booking conditions,” citing a brochure clause where Pulse reserves the right to “increase the price of any travel arrangements up to the date of departure.”

AFTA ceo Mike Hatton told TD “a surcharge should not be payable on a package that has been fully paid and payment completed. “It is my view that once it is paid for that is it and no further charges apply - a quote is a quote and has to be honoured, and especially after full payment.”

Pulse Holidays didn’t comment before TD’s deadline today.

MEANWHILE the wild variations in the Aussie dollar are continuing to prompt currency revisions, with more wholesalers including Qantas Holidays, Tempo Holidays, Driveaway Holidays and Jalpak announcing price rises - but giving some grace to make full payment to avoid the increases. Interestingly Jalpak’s 30% levy only applies to new bookings - not to bookings already deposited.

 

[Alanslegal]

A good friend of mine works for a relatively large TA group and once a customer makes a payment in full, that's it.

If her TA does not ticket on time and the fares go upwards, the TA cops it on the chin. That's why sometimes she works till late to ensure tickets are ticketed on the day its paid or else her TA could potentially lose $$$

 

[straitman]

That's why sometimes she works till late to ensure tickets are ticketed on the day its paid or else her TA could potentially lose $$$

... or the opposite of course :!:

 

[Travel Guru]

... or the opposite of course :!:

Trust me Bill, you lose on 99 before you win on 1 with fares.

TG