The new rules, which went into effect in early January, are designed to combat what some consumer advocates have called deceptive advertising on the part of the airlines.
In the past, airlines would advertise just the base price of the ticket.
Now, airlines must disclose to ticket buyers the total price of the ticket, including round-trip fare, plus mandatory federal taxes, airport and any other fees a passenger must pay.
If airlines don't comply with the new DOT rules, they will face a fine from the DOT.
These new ticket transparency rules are being called a big win for flyers.
No More "Too-Good-To-Be-True" Pricing In the past, airlines were allowed to advertise just the base price of a ticket, excluding government fees and taxes.
For example, an ad might read, "$39.
00 to Ft.
Lauderdale," along with an asterisk explaining - or not - that the flight is one way, at a certain time and out of a specific airport.
A representative from a flyers' rights advocacy group explained the new rules bring much more transparency to airline advertising, eliminating the shock of surprise fees, and allowing flyers to better budget and plan their trips.
Expect Higher Advertised Prices, But...
When ticket shoppers go online, they will see higher advertised prices.
It will appear as though tickets have drastically gone up, but in reality, the price is relatively the same as it was - it's just that now the advertised price includes government and airport taxes and additional fees.
Taxes and fees can add much to the base price of an airline ticket.
For example, taxes on a $200.
00 domestic ticket with a connecting flight can add as much as $60.
00 to the total price of the ticket.
Taxes and fees on international airfares are even more, ranging between $100.
00 and $200.
00 in taxes and fees.
The new DOT rules also affect:
- Additional airline fees.
Airlines must now show all categories of fee revenues - in addition to the baggage and reservation change fees - in full.
Anything on top of the base price must be disclosed, such as how much an aisle seat costs as opposed to a window seat, food and entertainment, etc. - Vacation package pricing.
The new pricing rules also apply to the way vacation packages are advertised.
For example, instead of seeing a $599.
00 package to Mexico, flyers will see a $750.
00 package that includes the base price, plus about $150.
00 in taxes and fees. - Cancellation fees.
Flyers now have a 24-hour grace period after they buy a ticket to cancel the flight, without penalty or fee, as long as the flight is at least seven days out.
Passengers are still responsible for the difference in fare on the new ticket.
Still, flyers rights advocates say it's a big step in the right direction.
Tickets Prices Higher - But Not Really Consumers will have to get used to seeing higher prices, but again, it's about transparency - seeing what is owed up front, instead of having to pay more after the fact.
The shift in the way ticket prices are advertised will start to change the paradigm of what flyers consider a good deal.
Now, a round-trip ticket around $120.
00 will be considered a good deal, because it already includes taxes and fees.
Airlines Pushing Back Airlines have already begun disputing the new rules with the DOT and seeking injunctions on the grounds that the new rules will be costly for the industry, and will expose an airline's pricing strategy to competitors.
Airlines are also arguing that they are being singled-out unfairly, because many other businesses and industries are allowed to advertise just their base price, before taxes.
They say most people know that an advertised price does not include taxes and fees.
For now, consumers should feel more comfortable that they will know the full price of an airline ticket before they buy, instead of finding out they owe more money after the after they purchase the ticket, or arrive at the airport.