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

[MEL_Traveller]

Purchasing aircraft is a cost of doing business.

lol... imagine if you bought a fare from SYD to MEL for $89 and then there was a $10 'comfort fee' for aircraft financing.

After all... having an actual airplane is really only for the comfort of the passengers right?

Or is that a convenience?

Either way, we'd still be slugged for it. :-|

 

[juddles]

That's actually what they did say.

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

No, your bolding is incorrect. You should have bolded “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.”

There are fees for comfort (like best seats) and there are fees for convenience (like sitting home using your credit card to make a booking)

 

[daturtle]

Well if it's being used for CEO bonuses then it's definitely a comfort fee. Bigger desk with a bigger chair.

 

[juddles]

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.

Make it a level playing field where every airline can only show a single, total, unified, cost of a fare, and I would agree.

 

[juddles]

.. if it's being used for CEO bonuses....

That somehow this charge has been married to CEO bonuses is just plain nonsense.

(but daturtle, I did enjoy your humour )

 

[dajop]

Of course it's a convenience and comfort fee. Those paying by poli don't have to pay it because it is far less convenient sitting at you computer entering your bank account details than it is entering your credit card details ...

 

[juddles]

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.....

As the charge has no correlation to the cost of the credit card transaction, a name of "Booking and Service Fee" is ok. The fact that it is only charged to most credit card payments doesn't change that. It is a set fee for paying a certain way. Nothing is hidden. There will always be people who will shout that it is a "rort" etc, and to these people the only name they would accept is "Nasty Rorting Obscene Gouge Fee". But that is ridiculous. If someone is unable to compare the final cost of a ticket with Carrier X vs an alternative ticket booked with Airline Y, they shouldn't be buying tickets.

 

[JohnK]

There are fees for comfort (like best seats) and there are fees for convenience (like sitting home using your credit card to make a booking)

A lot of businesses give you a discount for purchasing online instead of in person or over the phone. And no credit card surcharge.

Credit cards are a cost of doing business. How the Reserve Bank ever approved credit card surcharges is beyond me.

 

[MEL_Traveller]

No, your bolding is incorrect. You should have bolded “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.”

There are fees for comfort (like best seats) and there are fees for convenience (like sitting home using your credit card to make a booking)

Well the thing is this...

If it is a surcharge for the 'convenience' of using a credit card, the fee should be limited to the actual cost of the transaction for that particular passenger.

If you argue that it's a fee for comfort, you can charge what you want (like some airlines do for exit rows).

 

[juddles]

A lot of businesses give you a discount for purchasing online instead of in person or over the phone. And no credit card surcharge.....

And I bet you that their profit margin is MUCH greater than that of an airline.

Airlines are cutthroat businesses. If you consider "profit" to be bad, then at least acknowledge that your local corner store "gouges" you a hell of a lot more than QF. As does your plumber, the supermarket, the tyre shop, and your local bottleshop

 

[juddles]

Well the thing is this...

If it is a surcharge for the 'convenience' of using a credit card, the fee should be limited to the actual cost of the transaction for that particular passenger. ...

Exactly not! QF state very clearly, it is a fee based on what the market will accept. It is not set based on the credit card cost. It is based on what they believe the market will wear. How could they be more honest about that??

 

[MEL_Traveller]

Exactly not! QF state very clearly, it is a fee based on what the market will accept. It is not set based on the credit card cost. It is based on what they believe the market will wear. How could they be more honest about that??

Because that's not explained when you come to pay for your ticket.

it's been explained by a Qantas official at some investigation into their credit card fees.

When the majority of passengers go to pay on the QF website, all they see is an inflated credit card fee which bears no resemblance to the fare they are about to buy.

 

[juddles]

.........When the majority of passengers go to pay on the QF website, all they see is an inflated credit card fee which bears no resemblance to the fare they are about to buy.

And if they bother using up just 5 seconds of their lives, there is simple information of methods of payment that do not incur the fee.

 

[medhead]

No, your bolding is incorrect. You should have bolded “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.”

There are fees for comfort (like best seats) and there are fees for convenience (like sitting home using your credit card to make a booking)

The thing is I don't want the convenience of sitting at home. I want to go out to an office and pay them cold hard cash

 

[Mattg]

Exactly not! QF state very clearly, it is a fee based on what the market will accept. It is not set based on the credit card cost. It is based on what they believe the market will wear. How could they be more honest about that??

They could be more honest by not calling this apparently non-credit-card-related fee a "Booking and service fee" or, in the case of Qantas, a "card payment fee" - and only making customers who pay by credit card pay the fee.

 

[mannej]

They could be more honest by not calling this apparently non-credit-card-related fee a "Booking and service fee" or, in the case of Qantas, a "card payment fee" - and only making customers who pay by credit card pay the fee.

There is also a card payment fee for those using a debit card on QF, albeit it is much less (~$2.50) domestically.

 

[juddles]

Guys, I understand most of the arguments, I think that some are unrealistic, and think that we all have to acknowledge that Qantas and Jetstar are trying to do business in a difficult world. Yes, funny names and fees and all that stuff is wrong. But don't blame Qantas for something that is universal.

I am in a different time zone so am off to bed - defending QF can be exhausting

As always, love the AFF debate.

 

[MEL_Traveller]

Guys, I understand most of the arguments, I think that some are unrealistic, and think that we all have to acknowledge that Qantas and Jetstar are trying to do business in a difficult world. Yes, funny names and fees and all that stuff is wrong. But don't blame Qantas for something that is universal.

I am in a different time zone so am off to bed - defending QF can be exhausting

As always, love the AFF debate.

its not universal! qantas doesn't charge fees for booking by credit card from other countries! only Australia!

 

[JohnK]

And I bet you that their profit margin is MUCH greater than that of an airline.

Airlines are cutthroat businesses. If you consider "profit" to be bad, then at least acknowledge that your local corner store "gouges" you a hell of a lot more than QF. As does your plumber, the supermarket, the tyre shop, and your local bottleshop

I know airlines are in a difficult market. Surcharges or component pricing are not the solution.

Increase airfares. Or pay executives less. Cut down the costs of business. Do away with lavish offices.

I was on a peak Qantas flight SYD-BNE last Sunday. Chose 4D/4E. Less than full flight. We had a shadow. What's worse only 3 in business class. I cannot remember the last time I saw a Qantas flight that was not full in business let alone have that many spare seats.

I suspect airfares are too high. Slugging people surcharges is not the answer. They need to streamline business costs. The lavish office style of the past is over. Move on if you want to survive. That's what a CEO is supposed to do. Not sulk.

 

[NoName]

The thing is I don't want the convenience of sitting at home. I want to go out to an office and pay them cold hard

What would they do if everyone started paying them in physical cash? They'd be stuffed. Imagine the expense they'd incur from having hundred of people running to the bank each day with thousands of dollars in cash, the extra insurance they'd have to fork out for etc etc. Paying electronically is as much a convenience for QF as it is for the customer.