As a result of Americans losing $700 million in cancellation and change fees alone in 2021, Joe Biden’s Department of Transportation (DOT) is attempting to hold airlines and travel companies more responsible.
A new law demanding greater openness on websites to reveal extra expenses beyond the main ticket price, including fees for ticket changes, luggage, and the option to seat with everyone in the reservation, will be announced by the president on Monday.
The regulations that the government is planning to put up are intended to increase consumer rights when dealing with airlines and other third-party travel websites that sell plane tickets as well as promote competition and result in cheaper airfares for Americans.
Transportation Secretary Pete Buttigieg said in a statement that “airline customers need to know the full, actual cost of their flights before they purchase a ticket.”
“This new proposed regulation would force airlines to be open and honest with consumers about the fees they impose, which will help passengers make wise choices and save money,” he said.
This summer, Buttigieg gave the DOT the go-ahead to develop an online dashboard that makes aircraft cancellations and delays easily visible to travelers. Tens of thousands of flights were either canceled or delayed this summer, which generated a number of airline problems that led to the decision.
The weather and a lack of workers have made it difficult for airlines to run their regular operations throughout the summer.
During a meeting with the White House Competition Council on Monday afternoon, Biden will make the proposed rule changes public.
‘In 2021, major airlines collected roughly $700 million solely on cancellation and change fees alone,’ a White House insider told CNN. What Americans spend on other costs, including luggage or seats, is not immediately evident.
Americans should be able to obtain the “real best bargain,” according to the government, while looking for flights. The White House acknowledges that the regulation is anticipated to increase competition for future airline ticket prices.
The White House representative remarked, “Those costs pile up.”
Some so-called “budget” airlines advertise cheap costs but then tack on extra charges for practically everything, including carry-on and checked luggage.
Airlines sometimes charge passengers to guarantee that their whole group may seat together on the aircraft, even if this includes small children booked on the same reservation.
The proposed regulation change, according to the DOT, would compel U.S. air carriers and ticket sellers to “clearly disclose…” In addition, we will provide third-party websites and ticket sellers “precise information on… adjacent seating surcharges for families traveling with small children, if any.”
While the cost of ticket modifications and cancellations is approaching $1 trillion,
In order to combat competitiveness in the American economy, Biden’s executive order on this front consists of 72 initiatives from more than a dozen government agencies.
The White House Competition Council was established last autumn, and before the Monday gathering, it had already convened twice. In the midst of an economic crisis, the organization is entrusted with encouraging competition in the American economy to aid in lowering prices for Americans.