Junk Fees: What You Need to Know

Junk fees are found in almost every service. Dreamstime/TNS

Despite some rhetoric from the administration of doing away with junk fees, they’re still flourishing. And it will take more than public pronouncements actually to get rid of them.

What They Are

So far, I don’t see even a uniform definition of junk fees. Some folks include just about any fee for some service or feature that was once included in the advertised price, like a checked bag or Wi-Fi. I don’t agree. If it’s truly optional, a fee may be excessive but it isn’t junk. My definition of true junk is a mandatory fee travelers are required to pay whether or not they use the service or feature the fee is supposed to cover. That means, in effect, they’re really part of the base price that the seller has carved out in order to post a deceptively low “price” figure. They’re everywhere.

Airlines. Many airlines—but not all—break their true fares down into a phony low-ball base price plus a “carrier imposed fee.” As an example, for a Chicago-London round trip in mid-May, United quotes a total basic economy price of $659, including airfare of $412 plus $247 in government taxes and fees, while American quotes a total basic economy of $643, including a phony airfare of $56, $247 in government taxes and fees, and a whopping carrier-imposed fee of $340.

Fortunately for consumers, a Department of Transportation rule requires airlines to show all-up prices including all fees and taxes, government and carrier, in the posted price from the get-go. This rule has been a big benefit for consumers. Maybe that’s why the current House version of the FAA reauthorization bill voids this rule; the Senate does not. We shall see.

Hotels. Currently, hotels are the worst junk fee offenders, with so many hotels excluding part of their true rate and adding mandatory fees to make up the difference. Originally started as “resort” fees, the practice has spread to locations that couldn’t possibly be described as resorts under names such as “destination” or “facility” fees.

Currently a few states and some federal agencies are looking at rules to prohibit those fees. But for now the scam remains unchecked.

Online Travel Agencies. Just last week, a Ryanair release showed puffed-up mandatory fees added by online agencies, including a charge off €23.50 for a seat reservation the airline charges €10 for, €65 “refund fee” the airline charges nothing for , and a €17.99 “premium” fee having nothing to do with the airline. The offending online agencies are not used frequently by North American travelers, but the practice is out there.

Rental Cars. For years, outfits that rent cars have added a laundry list of fees covering what are actually parts of the cost of doing business. Fortunately for consumers, various websites have been quoting all-up prices, including fees, for decades, so consumers aren’t scammed.

Railroads. Despite its overall excellence, Eurail is guilty of disguising a co-payment to some rail companies as an inflated “seat reservation” fee up to €43. C’mon, Eurail: Any “reservation fee” over €5 is a co-pay. Call it what it is.

Restaurants. I recently saw a blog post showing a restaurant check that included a “restaurant” fee. Ouch! You currently see all sorts of others.

Why They Do It

Have no doubt: The only reason any seller adds mandatory fees is to deceive consumers or cheat someone by featuring a price less than it really is. Even though the DoT airline rule prevents consumer deception, those airline “carrier imposed fees” scam frequent flyers.

What You Can Do

Current rules give sellers wide latitude to post deceptive prices so long as the deception is revealed before a final buy. All you can do is keep your eyes on the fine print before you buy anything. Clearly, there’s a Gresham’s law at work: Bad advertising drives out good. The only hope for a genuine fix is federal or state legislation, for which the current odds are not great. More than ever, as an emptor, seriously caveat and reprehendo improbum venditorem on any travel deal you’re considering.

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