Qantas wins Choice Shonky Awards

[Flashback]

... for it's $7.70 credit card surcharge per passenger per booking.

Heard it on the news on the radio (JJJ) several times while out on the road just then, haven't had time to look for a web reference.

 

[oz_mark]

Here is a link to an SMH article: Qantas choice for Shonky with sky-high fees

 

[straitman]

A more detailed and accurate set of information is set out below. This is the relevant part the email that Choice Magazine sent to its members. There was no requirement to login to get this so it really is available as public knowledge.

The CHOICE Shonky for Sky high surcharges

goes to

Qantas and Tiger Airways


Thankfully, ads for budget flights that conceal hefty hidden taxes and surcharges have been outlawed, so now the price you see advertised is the price you pay. Well, almost. If you book online, as many do, be prepared to fasten your seatbelt and watch the price soar as the credit card surcharge is added.

Airlines charge flat fees on a per-flight or per-passenger basis – or, in the case of Tiger Airways, both. Depending on the total travel value, these charges are potentially a lot higher than the airlines’ costs. On a $200 credit card booking for a Sydney-Melbourne return flight, Virgin and Jetstar charge $6 and Qantas charges $7.70 – yet Tiger’s fee is $12, or 6% of the fare. That’s a pretty big mark-up on the average fees paid by merchants to process Visa and MasterCard transactions, which are less than 1%, and even on Diners and Amex at about 2%. Internationally, Qantas takes the prize, with a $25 surcharge per passenger, whether it’s a $500 cheapie ticket to Fiji or a $10,000 first-class ticket to Europe. So we’ve decided to award Qantas the Shonky, with Tiger the runner-up.

Airlines deny the surcharge (which Tiger euphemistically calls a “convenience fee”) is ridiculously high. Qantas says it doesn’t even cover costs – it’s apparently not enough to subsidise the merchant service fee liability incurred by the folk at the pointy end of the plane. We concur with the Reserve Bank, which says “there are some cases where surcharges appear considerably higher than these [merchant service] fees. This latter outcome is likely to reflect the market power of the merchants concerned.” In other words, they charge a lot because they can.

If we could just knock this shonky surcharge on the head, we’d only have to worry about fees and surcharges for baggage handling, dodgy meals, hiring headsets, using on board toilets and so on.

 

[moa999]

so Qantas wins because they fly internationally and Tiger doesn't.??
The $25 QF intl fee even on a 'cheapie' $500 ticket (5%) (and there aren't many $50 fares on Qantas international)

is less than Tigers $12 fee on a say $150 SYD-MEL return (and some are cheaper)

 

[WOLF13]

The surcharge is a joke. Hope they get plenty of bad pub out of this.

 

[ColinP]

so Qantas wins because they fly internationally and Tiger doesn't.??

Huh! Tiger don't fly internationally? :shock:
Australia, Singapore, Malaysia, Thailand, Vietnam, Philippines etc, etc.

 

[straitman]

Huh! Tiger don't fly internationally? :shock:
Australia, Singapore, Malaysia, Thailand, Vietnam, Philippines etc, etc.

Only the name is the same :!:

 

[anat0l]

We have a detailed analysis of QF's infraction here: http://www.frequentflyer.com.au/com...ram/qantas-credit-card-service-fee-19964.html

$25 is a lot when you consider most other airlines do not have any international booking fees at all, even if they are airlines which are not based in Australia.

In saying that however, I'm hoping of course that they remove the booking fee altogether. I'm certainly not hoping that they make the said fee percentage based.

Did CHOICE just make up this award? Otherwise, without taking the words "sky high" literally (i.e. must be in airline industry), my vote for shonky sky high surcharges goes to Cabcharge. (Yes, let's not start this whole argument again...)

 

[Mrmaxwell]

Qantas choice for Shonky with sky-high fees

"Qantas says it does not deserve "in any way" the "Shonky" award it received from Choice today, for what the consumer watchdog believes is the airline's "sky-high" surcharge on bookings made with a credit card."

Full article:

Qantas choice for Shonky with sky-high fees

While credit card surcharge fees are becoming ridiculous on all carriers I think it's unfair to single out Qantas....especially with Tiger's eye-popping $6 fee per sector - normally equating to $12 for the average return fare (on a Tiger special fare SYD-MEL at $56 return this is almost 25% of the total fare!)

 

[brett-au]

+1 on cabcharge.

you are paying a premium just to have the cab driver rip out the old 'click-clack' machine and swap your credit card docket for his next tank of fuel.

Did CHOICE just make up this award? Otherwise, without taking the words "sky high" literally (i.e. must be in airline industry), my vote for shonky sky high surcharges goes to Cabcharge. (Yes, let's not start this whole argument again...)

 

[Steve Franklin]

I'm certainly not hoping that they make the said fee percentage based.

I agree. The merchant fee is the cost of doing business. I would prefer Qantas factor it in to the price and then offer discount for bpay/cash? I.e If qantas said to you, you can SAVE $25 by paying for your flight by Bpay, that is far more palatable.

If I pay for an international flight with my visa card, it would have to be more than $2840 before the merchant fee would be over $25. And if I'm a business/first class traveller why should the hoi polloi subsidise for my addtional benefits and luxury?

Flying is a user pays business.

 

[pauly7]

Re: Qantas choice for Shonky with sky-high fees

While credit card surcharge fees are becoming ridiculous on all carriers I think it's unfair to single out Qantas....especially with Tiger's eye-popping $6 fee per sector - normally equating to $12 for the average return fare (on a Tiger special fare SYD-MEL at $56 return this is almost 25% of the total fare!)

But it doesn't matter about Tiger or DJ or any other airline, everything is always Qantas' fault didn't you know?

 

[straitman]

Re: Qantas choice for Shonky with sky-high fees

This has already been addressed here.