The View From Here . . .

2008-08-08 / View From Here

By Bob Morgan, Jr.

As this is written, I'm on a short vacation while the lad is still in camp (he's back next Monday), so I think it may be well to dispense with the usual political fare, beyond noting a slight uptick in the prospects of John McCain.

Instead, I'd like to supplement a column I did about two years ago concerning my top consumer pet peeves, which as I recall included such items as impossible-to-open bubble wrap packaging and hard-to-redeem mail-in rebates.

My basic complaint this time is a bit more generic - the tendency of so many sellers to nickel and dime their buyers.

Since I am on a trip, a good illustration is provided by the airlines. Everyone knows that this is an industry facing challenging economic times. Traditional carriers with unionized workforces and large pension obligations are attempting to compete in this era of deregulation with upstart carriers with none of these issues. In addition, all carriers have major concerns about the price of fuel. Thus, consumers may not welcome increases in airline fare levels, but will understand their necessity.

However, rather than straightforwardly announcing across-the-board fare increases that fully reflect their higher operating expenses, the airlines have adopted the annoying strategy of imposing odd charges for all sorts of services that were previously free. Perhaps a charge for meals is reasonable, but the carriers have now added charges (beyond tips) for skycap services, for selecting a desirable seat, for onboard pillows and blankets and, perhaps most notoriously, for checking two, or even one, bag.

Almost everyone regards bag checking as part of basic airline services and also important in avoiding excess crowding of luggage in the cabin. The new charges, of course, will create incentives for passengers to test the limits of the rules concerning the size of carryon bags. An additional charge, especially for a first bag, is a significant customer relations problem for the carriers, who would be well served by removing the charges and adjusting fares accordingly.

But there are many good examples of the nickel and dime approach that go beyond the airlines. Staying in the travel industry, hotels sometimes tack on "resort fees" that cover such pretty routine items as local telephone service (whether or not the guest uses the phone) and use of the swimming pool area. I have also seen imposition of a "fuel surcharge" to compensate the establishment for higher energy costs. While the cost of providing lodging may well have jumped, consumers would much prefer to have the total price included in the quoted rate rather than to be subjected to mystery charges of this type.

Obviously, there are many other instances of the nickel and dime mentality. I remember buying a used car years ago where the dealer attempted to impose a "dealer prep" charge, whatever that means for a used vehicle. Another favorite example occurred when I was buying tickets for an event at a stadium box office and was informed that there was an additional charge for a "facility fee." This is a truly amazing concept; I always assumed that occupying the facility was included in the ticket price. (I must not have been the only unhappy consumer, since this charge is now included in the quoted ticket price.)

Obviously, not every fee in addition to basic services is unreasonable. But in many instances, sellers should give consumers a little credit for common sense and provide an easy to understand total price rather than a lowball number plus a series of annoying add-ons.

Return to top