The World Travel Agents Associations Alliance (WTAAA) has called on airlines to be more transparent with the way they impose surcharges, amid the current upheaval in air travel.
WTAAA has warned that inconsistent surcharge labels, fragmented pricing, and unclear refund treatment are creating “avoidable confusion” for travellers and placing additional pressure on travel agencies that are “increasingly relied upon to explain costs and support disrupted passengers”.
"At a time of global uncertainty, travellers need clarity and confidence when they book. Travel advisors are often the ones explaining complex charges and assisting clients when plans are disrupted,” said Otto de Vries, executive director of the WTAAA.
The travel agents’ alliance is also urging industry dialogue on simpler, more transparent fare presentation that improves comparability for consumers.
The alliance is calling for airlines and relevant industry bodies to work toward “clear and consistent disclosure” throughout the booking journey.
This includes:
full incorporation of airline-imposed surcharges into base fares to improve transparency
fair and prompt refund treatment when flights are cancelled and a refund is due, and
reasonable notice of surcharge changes; and industry dialogue on simpler, more transparent fare presentation.
How airlines are dealing with the fuel crisis
WTAAA’s call for clarity comes amid growing frustration in the travel agent community – and among consumers, too – over the way airlines are dealing with fuel spikes and the impact this is having on airfares.
Airlines have managed the fuel crisis in different ways. Some, like Cathay Pacific and Air France-KLM, have been upfront with a surcharge. Cathay, whose surcharge on long-haul flights is roughly US$200 per leg, is promising to review its surcharge every two weeks.
Others, like Qantas, British Airways and AirAsia have raised fares to reflect the rise in fuel costs, while several airlines, including Thai Airways and Malaysia Airlines, are significantly overhauling schedules to reduce fuel burn. Thai is also raising fares by up to 15% to cope with "overwhelming" demand and rising fuel costs, the airline said.
The challenge for travel agents
Feeding the confusion, the outlook for airfares is as fluid as the waters in the Strait of Hormuz. More airlines are expected to reduce schedules or introduce new charges as the fuel crisis continues.
WTAAA member, ASTINDO (The Association of Indonesian Travel Agents) is currently supporting the issue, and assisting to communicate with regional airlines, said chairperson Pauline Suharno.
However, the challenge for travel agents is to interpret the different charges and explain them to customers.
As WTAAA notes, “They [charges] may appear under different labels, including ‘fuel surcharge’ or ‘international surcharge’, and inconsistent terminology and treatment can make it difficult for consumers to understand the true price of travel.”
The alliance warns that inconsistent and opaque surcharge practices are eroding consumer trust at precisely the moment when clarity matters most.
The codes that confuse
Airline-imposed surcharges, often coded as YQ or YR on airline tickets, can be hard to unravel.
For example, Singapore Airlines folded a fuel and insurance surcharge into base fares in 2017, eliminating the YQ tax code from its pricing. The airline says it has not added fuel surcharges during the current turmoil but a search for a Melbourne to London economy return fare in May brings up an ‘international passenger service charge’ of A$67.50.
Nikhil Ravishankar, chief executive of Air New Zealand, says the current fuel crisis should be kept in perspective. "It's an unprecedented issue as far as fuel price is concerned, but managing fuel spikes is a well-trodden path if you're running an airline,” he told Radio New Zealand.
What comes next if disruptions persist?
What comes next if the conflict in the Middle East continues is keeping analysts awake at night.
Mick Strautmann, an analyst at data firm Vortexa, told the BBC, “If disruptions persist, airlines will likely have to increase prices further, and reduce the number of flights”.
He added that this will be "more and more likely" as peak summer travel season summer approaches for many parts of the world.
For travel agents, the outlook for business is not all gloom and doom. Many will adapt and steer clients through the fog of hidden costs and changing schedules, with their services becoming more valuable as complexity rises.
WTAAA said it recognises that no single solution to airline fuel charge transparency will apply uniformly across every market, but one principle remains universal: “Consumers, and the professionals who serve them, are increasingly seeking honesty, consistency, and clarity in how the true cost of travel is presented and communicated.”