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March 25, 2008

Smart Shopper Tip: Be Sure to Understand the Total Cost of Airfare

Filed under: Fuel Surcharges, Europe, Cheap Airfare Sales — Rick Seaney @ 11:28 am

I have been chatting with several reporters about European travel recently, including Michelle Higgins at the New York Times who had a good article this past weekend on one of my favorite subjects: “Open Skies” (get ready — it starts March 30th).

As you know, I spend a good portion of my day reviewing all sorts of airline ticket pricing information and it has been astounding and gratifying to see base airfare prices to Europe as low as $400 roundtrip for summer travel.

But then…the other shoe drops. By that I mean, reality dawns — and it becomes clear that this “astounding” deal does not include taxes, fees and fuel surcharges. However, even with these fees and surcharges, you can still find good travel deals to Europe. In order to make the best buying decision, though, it’s important to understand what makes up the total cost of an airfare. Keep reading; I’m about to show you a real airfare example, and how it all breaks down. You’ll be amazed.

Okay, I saw this incredible deal on United: Dallas to Zurich in June for an incredible $488 roundtrip (and from reviewing my historical data, I can tell you that summer airfare to Europe is rarely available for less than $900). So clearly, this is a superb deal, right?

Well yes. But in the past with lower fuel surcharges and lower taxes and fees on flights to Europe, you could have gotten out the door paying about $600 for this flight with a base airfare that low. That’s not quite the case anymore:

 

Take a look at the breakdown of taxes and fees:

  • $488 - Base Airfare Roundtrip
  • $309 - Fees, Taxes and Surcharges
    • $200.00 - Fuel Surcharge
    • $ 30.80 - U.S. International Departure/Arrival Tax
    • $ 5.50 - U.S. Customs Fee
    • $ 7.50 - U.S. September 11th Security Fee
    • $ 5.00 - U.S.D.A. Agriculture Fee
    • $ 7.00 - U.S. Immigration Fee
    • $ 13.50 - U.S. Airports Passenger Facility Charge
    • $ 40.00 - Swiss Passenger Security Fee

Suddenly, the incredible $488 airfare is $797. Now, this is still a great deal to Zurich from Dallas in the summer. You just have to realize that when you’re purchasing an airline ticket to Europe these days, you’re going to shell out $300+ before you even start dealing with the base airfare.

I have actually seen several cases of European travel where the base airfare was less than the total taxes, fees and surcharges.

So, what does all this mean? In order to make the best airfare buying decision, you need to know what a good deal is. That means looking at historical pricing trends for particular markets, comparing prices on different airlines, and understanding exactly what you’re paying for when you purchase an airline ticket.

At FareCompare.com, we’re committed to helping you make the most informed decision when you book your flight. We provide you the tools you need to know what is and isn’t a good deal and whether or not you should jump on a particular airfare. We also always show you prices that include the estimated taxes, fees and surcharges, based on the most common routes.

Remember, fuel surcharges, fees, and taxes are higher than they have been in the past, but with low base airfares, you can still find good deals to Europe. You just have to shop smart.

8 Comments »

  1. ** At FareCompare, we always show you prices that include the estimated taxes, fees and surcharges, based on the most common routes. **

    I’ve posted this comment on this blog before and I guess I’ll post it again — unfortunately, that just does not always seem to be true, at least with some carriers.

    For example, take this breakdown of intl fares from IAH on CO:

    Houston, Continental

    Now, compare it to this breakdown of intl fares from IAH on NW:

    Houston, Northwest

    Those NW fares look great!

    Until you start breaking them down on booking engines, and then you discover that those fares aren’t really bookable, and that FareCompare apparently isn’t capturing some of the fees/surcharges, and that the total amount is actually in line with what CO is offering!

    It would be great if FareCompare could address this problem. Once upon a time, FareCompare was capturing the total price pretty accurately, which made it a GREAT service (and it’s still a great service, but with caveats now). It’s misleading to suggest that it’s still the case, at least for some intl fares from IAH on some carriers.

    Comment by kevin whited — March 25, 2008 @ 12:09 pm

  2. Although it doesn’t look like a good deal when you add on all the taxes, wouldn’t you still be paying that amount of tax with the $900 rate to begin with? Therefore the deal of paying $797 vs. $1209 really is a great deal!!

    Comment by Kat — March 27, 2008 @ 12:18 pm

  3. Kevin,

    We continue to work on all our tools and international has become difficult to keep up with estimated taxes and fuel surcharges on typical routes. We continue to work on it and should have a wave of new fixes in the next month or so.

    Thanks for your patience,

    Rick

    Comment by Rick Seaney — March 27, 2008 @ 5:00 pm

  4. Kat,

    I forgot to post the united.com screen shot of the deal and yes it is still a really good deal for summer but the taxes and fees are almost as much as the base fare which is a trend that everyone needs to know about.

    Cheers,

    Rick

    Comment by Rick Seaney — March 27, 2008 @ 5:08 pm

  5. Hi Rick…enjoy reading your column….as a ‘wanna be’ I am constantly looking for deals even tho I am going nowhere….have yet to find that one all time great once in a lifetime journey….your column has some great and intersting information but I have found that most of this is based on return airfares and there is not much information on one way fares. I realize that the greater population does travel return but there is the odd one of us out there that sometimes require a one way ticket as is the case of my husband and myself looking for the best fare back to Edmonton from London after doing a 2 year contract job in Wales. Can you advise what would be the way to find a decent fare and when to look for a cheaper fares? Many thanks and thank you for sharing your flying knowledge. Have a great day!

    Comment by Sharon Moore — April 3, 2008 @ 3:31 am

  6. This is so obvious this article is almost pointless. What passenger still thinks you pay for the flight alone?

    In addition I would hope that anybody booking a ticket would realize at some point that their total charges will be higher than the price of the ticket.

    Comment by Herb — April 3, 2008 @ 10:58 am

  7. is there any possibility of airfare rates from Green Bay, WI to Brussels, Belgium to decrease in the next 6 months?

    depressed by fuel prices,
    Blake

    Comment by Blake Nellis — May 1, 2008 @ 9:36 am

  8. I ‘m enjoying your articles. I am shopping for airfare to Europe this June.. looks like prices are double what they were last year. With rising airfares, is it smarter to book now, or wait until it is closer ( 4 to 5 months) before departure?And what do you know about Orbitz’ price assurance policy? thanks!

    Comment by audrey — September 14, 2008 @ 10:16 pm

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