Airlines expanding fees beyond passengers to travel agents

While airlines may be running out of addition fees to charge passengers, they’re just getting started with travel agents.

Though agents don’t get charged fees at the time of ticketing, the airlines can bill them later by means of what is called a “debit memo.” Historically, these memos are sent for ticketing violations, say, if an agent tickets a client at a wrong or expired fare.

Lately, airlines have expanded the list of violations that get charged. Many of them charge for not canceling a reservation that is unused, and for booking the same flight too many times — called “churning.” Delta is particularly vigilant on churning, although often the problem is simply an indecisive client who books, doesn’t ticket, and then calls back to book the same reservation later.

Now, those violations do cost the airlines money, as the reservations systems charge them per booked segments, but the fees are generally much higher than they are charged.

In additional there are technical violations. United is now charging for incorrect formats when using a voucher or a customer service coupon. In fact, our agency received a few $25 charges for not putting the certificate number in correctly for $25 vouchers, although the ticket was priced correctly.

But American’s latest fee takes the prize, for now. In their fare rules, they have added a note that when a nonrefundable ticket is exchanged for a refundable ticket, the original nonrefundable amount must be noted on the ticket. This is to prevent that nonrefundable amount from being accidentally refunded.

But since only the agency that books the ticket is theoretically allowed to refund the ticket, they will have a record of the exchange, and know the rules. And should an agency refund the whole amount by mistake they would be slapped with an instant debit memo.

Ditto, if American broke their own rules by refunding an agency ticket, they could also come after the agency for the nonrefundable portion later.

In a situation in our office, we booked travel for several foreign government officials who were flying one way from Los Angeles to Washington. They changed their tickets at the last minute from an approximately $900 nonrefundable first class fare to a $1,300 refundable first class fare. They paid an additional $150 plus the fare difference. And they all flew on the tickets. But we didn’t note the original nonrefundable amount in the endorsement box.

So, since this was a first time offense that cost the airline nothing, do we get a warning? A slap on the wrist? A small charge? Nope. American wants $100 per ticket for a rules violation.

And airlines wonder why they have an adversarial relationship sometimes with travel agents.

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