Monday, September 21, 2009

Let the buyer beware!

Consumers who fly regularly around Europe love Michael O’Leary, the loud-mouthed CEO of Ryanair, the largest airline in Europe. Low cost travel is with us as a result of Ryanair cutting costs with relentless pressure on suppliers and airport authorities. Millions who might never fly have done so because of him.
But should we really love him?
Ryanair took full advantage and were first out of the blocks when deregulation of European air traffic and the ever-growing European Community (EU) led to a veritable bonanza of flights for seemingly ever-decreasing prices. Net flight charges of €20 are becoming the norm, with some flights across Europe being charged as low as €NIL plus taxes.
The downside - you will have to know which airlines actually fly to Ireland at the time you want to travel. Routes tend to change frequently, airport slots are re-allocated to more profitable routes and many (if not most) flights never show up in conventional booking engines. Many budget airlines aim to cut out the middleman, in this case the travel agent.
The fact that airlines do offer budget flights at extremely low prices does not mean that all flights are actually cheap. It all depends when you book what route and under which promotion. Irish airlines Ryanair and Aer Lingus are a good example - while generally you may get a cheaper flight with Ryanair, it may not be as convenient. And if you mess up your booking (or leave it too late) you may end up paying more than on Aer Lingus.
Both airlines will screw the consumer when it comes to peak demand time. Sporting events, such as the Heineken Cup Final when Munster or Leinster were in the final are gravy time for low cost airlines. And boy do they rub it in when they get the chance! Flights to Cardiff that would cost maybe €50 ordinarily have cost as much as €500 when the Heineken Cup final was played at the Millenium Stadium.
The same goes for mid-term school breaks. Everybody in Ireland wants to get to the overpriced holiday homes they paid for in Spain and the only chance is at the mid term breaks. No chance of €NIL flights then. You would get a package holiday for the same price! The same policy applies at seasonal holiday times like Christmas and Easter.
"No frills and no thrills" airlines is what they should be called. This describes them far better and reflects the motto "You get the service you pay for". No-frills airlines strip down their planes to maximize passenger capacity and minimize weight. At the same time, charges may be incurred for things many air travelers take for granted. Starting with check-in luggage and ending with your cup of in-flight coffee. Ryanair are now threatening to charge for going for a pee on the plane!
Boldly advertised "Free Flights!" rank alongside free lunches - there generally is no such thing. The same realization hits most people once they are actually charged quite more than nothing for their free flights.
The problem lies with the legality to put the net flight price into ads, a practice that confuses passengers to no end. You have to be aware that most airlines do not quote the price you effectively pay for your flight. There are nearly always hidden extras.
Net prices shown in airline ads are exactly the price you pay to the airline for flying you from A to B. Which is far less than your flight will cost you. Before you take off the government will lighten your purse with assorted taxes. Then the airport will ask you for a contribution to their running costs. All this easily works out at €20 per flight. The cost of the flight advertised for €10 already has trebled.
But airlines themselves also like to dig into your pocket. You have luggage? Seat reservation or a "Priority Boarding Request? That will be €10 thank you. Using a credit card? Direct debit? Golf clubs? - cheaper to buy a set when you get there! All this will cost you extra! Turning up with an over weight bag will cost you more than the flight itself in extra fees.
Whilst Michael O’Leary certainly pioneered low cost flying for the masses, he is no angel for the consumer. The old business trick of sucking them in with rock bottom prices, getting them hooked and then screwing them applies very much to O’Leary.

Let the buyer beware!

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