Improving Airline Ancillary Service Fee Transparency

Enhancing transparency of airline ancillary service fees is vital in the aviation industry. Michael J. Reilly, with extensive experience in pricing, revenue management, industry standards, and regulations, highlights the complexities of airfare searches and the varied factors affecting ancillary fees. He proposes a rule to overhaul the search process for accurate passenger-specific pricing and information retrieval. This initiative aims to streamline the process and provide clearer insight into the fees associated with air travel.

• Airline Ancillary
• Transparency
• Airfare Searches
• Aviation Industry
• Passenger Pricing

dezl_14 Follow

Uploaded on Oct 02, 2024 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

Presentation Transcript

1. Enhancing Transparency of Airline Ancillary Service Fees Michael J. Reilly March 30, 2023

2. Background Worked for nearly three decades for major US-based carrier, with primary focus for 15 years on areas covering: Pricing; Revenue management; Industry standards; and Relevant US and foreign regulations For the past fifteen years, worked for the first air travel search engine and premier travel metasearch site. Work included: External representation to ATPCO and IATA; Airline customer-facing issues; and Internally interpreting airline policies to engineering staff for implementation and problem resolution 2

3. Airfare Searches Are Not As Simple As They May Seem Check ATPCO for fares & rules, OAG for schedules, and carriers for availability Consumer enters flight parameters on search site Flight parameters sent to search engine Search engine returns results to site Site displays results Confirmation of accuracy and availability 3

4. Different Ancillary Fees May Be Stored in Different Databases 4

5. Ancillary Fees Depend on Many Factors Status in loyalty programs Credit card Military status Baggage weight Origin & Destination 5

6. Airfare Searches Are Not As Simple As They May Seem Check ATPCO for fares & rules, OAG for schedules, and carriers for availability Consumer enters flight parameters on search site Flight parameters sent to search engine Search engine returns results to site Site displays results Confirmation of accuracy and availability 6

7. Proposed Rule Requires Overhauling the Search Process Check ATPCO for fares & rules, OAG for schedules, and carriers for availability Consumer enters flight parameters on search site Flight parameters sent to search engine Identify correct passenger-specific prices Check ATPCO and carrier databases for ancillaries Ascertain relevant passenger-specific info Search engine returns results to site Confirmation of accuracy and availability Site displays results 7

8. What Does This Mean for Consumers? More frustrating search experience Longer search times Fewer flights shown Overloaded displays 8