New tax-included pricing for advertised airfares

January 24, 2012 - Before the end of the month, prices for airfare will appear differently on AMATravel.ca and on other websites. At first glance, fares may appear to increase in price substantially, but in reality, the only aspect that has changed is how the fares are displayed.

The change, which takes effect Jan. 26, is part of a Department of Transportation (DOT) effort to provide more transparency for the consumer on travel costs.

What’s now included in advertised pricing and search results: Full-fare pricing, including fuel surcharges, taxes and mandatory fees.

What’s not included in advertised pricing and search results: Fees for carry-on or checked baggage -- which can add up to $120 per ticket on a roundtrip flight. It also does not include any entrance fees or visa fees that may be charged at international airports.

Any airfare will now list pricing that includes taxes and mandatory fees. Other types of travel, including pricing for packages, cruise, hotels, car rentals and tickets, are unaffected.
Some travel companies, including AMA Travel have already begun displaying airfare pricing with taxes.

An example:
For a $249 each-way fare from Edmonton to Toronto, the price will now be listed as $640.66 roundtrip. This is the total roundtrip cost of the $249 each-way fare plus $142.66 (taxes) = $640.66 (roundtrip with taxes)

Other Changes
The new DOT guidelines include another consumer-friendly change. They require that airlines provide a link to their website where they display any baggage fees during the online ticket purchase process and on the confirmation notification.