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Why do airlines charge so much for checked baggage? This vague principle helps explain why

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Five out of six the biggest American airlines To have they’ve increased fees for checked baggage from January 2024

Take American Airlines. In 2023, it cost $30 to ascertain in for an ordinary bag on an airline; today, as of March 2024, it costs $40 at a US airport – a rise of as much as 33%.

How Business school travel professorI’m often asked why airlines discourage their customers by charging baggage fees as an alternative of mixing all fees. There are many reasonsbut a crucial, often ignored reason is hidden within the US tax code.

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A loophole in tax law

Airlines pay the federal government 7.5% of the ticket price When flights of individuals inside the country, together with other fees. Airlines do not like these fees industry association arguing that they increase the price of a typical airline ticket for the patron by a couple of fifth.

However, the US Code of Federal Regulations specifically excludes luggage from the 7.5% transport tax, so long as “the fee is separate from the fee for transporting a person and is indicated in the exact amount.”

This signifies that if an airline charges a complete of $300 for a round-trip flight with you and your luggage inside the U.S., it owes $22.50 in taxes. If the airline charges $220 for airfare and likewise charges $40 each way for baggage, then the overall cost is similar, however the airline only owes the federal government $16.50 in taxes. Splitting baggage fees saves the airline $6.

Now $6 may not appear to be so much, but it could possibly add up. Last 12 months, passengers benefited over 800 million trips on major airlines. Even if just some of them check their bags, it means big savings for the industry.

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How big? The government has tracked baggage fee revenue for a long time. In 2002, airlines charged passengers a complete of $180 million for checked bags, which worked out to about 33 cents per passenger.

These days, as any flyer can attest, baggage fees are much higher. Last 12 months, airlines collected greater than 40 times more in baggage fees than in 2002.

When full data for 2023 is accessible, total baggage fees will likely exceed $7 billion, or about $9 per average domestic passenger. By dividing the price of the baggageLast 12 months, airlines avoided about half a billion dollars in taxes.

In the twenty years since 2002, carriers have paid a complete of roughly $70 billion in baggage fees. This signifies that charging baggage fees individually saved airlines roughly $5 billion in taxes.

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It seems clear to me that tax savings are a think about unbundling baggage fees resulting from a loophole within the law.

The US government doesn’t apply the 7.5% tax to international flights over 225 miles outside the country. Instead, they’re constant international taxes on departures and arrivals. That’s why major airlines charge $35 to $40 for bags for those who are flying domesticallybut don’t charge a baggage fee once you fly to Europe or Asia.

Do travelers get anything for their money?

This system raises an interesting query: Do bag fees force airlines to be more careful with bags when higher-paying customers expect higher service? To discover, I contacted the Bureau of Transportation Statistics, which is where this happened tracking lost luggage for a long time.

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For a few years he calculated the variety of reports of mishandling of bags per thousand airline passengers. Government data showed that the very best level of mishandling of bags was in 2007, when there have been seven reports of lost or damaged luggage for every thousand passengers. This signifies that roughly once every 140 flights you possibly can expect your luggage to go on a distinct journey than the one you might be happening. By 2018, this estimate had dropped to at least one in every 350 flights.

In 2019, the federal government modified the way in which of tracking mishandling of bags, calculating the figures based on the overall variety of checked bags fairly than the overall variety of passengers. New data shows that around six bags per thousand checked are lost or damaged, representing lower than 1% of luggage checked. Unfortunately, the info doesn’t show any improvement since 2019.

Can something be done about higher baggage fees? Complaining about politicians probably won’t help. In 2010, two senators tried to ban baggage feesand their bill went nowhere.

Given that Congressional motion has failed, there’s a straightforward strategy to avoid higher baggage fees: travel without unnecessary luggage AND do not check any luggage. Not taking all of your stuff with you when traveling could seem difficult, nevertheless it could be the most suitable choice as baggage fees increase.

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This article was originally published on : theconversation.com
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An online tourist company has just broken down. Here’s how to avoid leaving a contract online

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Traveldream.com.au sold with holiday discounts – chosen tourist trips, boutique and cultural trips trips through A clever website and refined social media ads. But last week there have been news that a tourist company from Melbourne He fell to administrationleaving customers from pocket by 1000’s of dollars, and in some cases got stuck abroad.

Many didn’t know that Traveldream has not been formally accredited with a leading industry body since 2020. His status under Australian travel accreditation programLeaded by the Australian Travel Industry Association, has been canceled.

Even worse, most travel insurance policies Do not include insolvencymeaning Many customers cannot get well their losses.

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The Traveldream website has been updated about a message from the administrator.

Australians are expected to end $ 2 billion Online holiday reservation in 2024–25.

Large platforms, corresponding to Booking.com and Expedia Account O 60% this motion. But many travelers also turn to smaller or less known suppliers offering flashy offers and lower prices, often with fewer security.

So how are you able to protect yourself? Start with these five controls.

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1

This is a common tactic that is difficult to resist. You scroll, see a dreamy picture, the value is tempting and suddenly you’re in the course of the money register.

But refined promoting doesn’t guarantee legitimacy.

Travel fraud If They growEspecially engaging Sellers only online.

A couple relaxing on a tropical beach at sunset in a hotel
Ads in social media for idyllic holidays may be tempting, but check a small print.
Song_about_summer/shutterstock

Check for those who can confirm your corporation address, phone number and customer support. If the contract seems unclear, underestimated or excessively urgent, it’s a red flag.

Look for independent reviews (on Trustpilot, TripAdvisor or Google) and check Scamwatch for known problems.

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2. Look how the company is involved with clients

The company’s status isn’t only what it guarantees: It is predicated on how he reacts to questions and complaints. Before booking, take a moment to see how the company interacts with clients online.

Do they respond constructively to complaints? Do they provide updates or explanations when problems arise?

Also concentrate to the tone. Does it feel Human and responsiveIs general and manual? This may suggest how they’ll treat you after sales.

Small characters can speak to the amount. A page with 1000’s of followers, but no visible commitment may indicate a paid audience – and a company that disappears when the situation becomes difficult.

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3. Check if the company is accredited

Another way to assess the credibility of a tourist company is to check whether it has formal accreditation. This signal that the company has met financial security standards, customer support and dispute resolution.

Search for the Australian Travel Accreditation Program register https://www.atas.com.auor search High -quality accreditation. In the case of foreign suppliers, check the recognized local programs.

Accreditation offers additional assurance, but this isn’t the entire picture. Some large, reputable corporations, corresponding to expedia, operate without it. If the company isn’t accredited, proceed caution and give attention to how reservations and payments are supported.

4. Carefully examine the foundations

Before booking, check what is going to occur if the supplier receives whether you’ll be able to cancel or change the date and how the reservation has been confirmed. Where possible, proceed directly with the hotel, air or cruise line to make certain that the reservations are secured.

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Cropped view of a woman entering the hotel room and holding the suitcase
Reservation directly on the hotel or tour supplier may be sure that you’re receiving current availability.
Media_photos/shutterstock

It can also be vital to understand what Travel insurance does – and doesn’t include.

The company’s insolvency is one among the The most typical exclusion. While the policy doesn’t include the “failure of the end supplier” or a similar clause (most don’t), you might not have the ability to apply for a refund. Always read the product revealing instructions to check exactly where you’re.

Another security is to pay for defense. Although the conditions differ depending on the supplier, bank cards can offer a return load If goods or services are usually not delivered.

5. Book directly where possible

During accredited travel agencies It may be helpful in complex routesLike foreign trips with many stops or package services, it is usually price booking directly with the supplier when organizing online travel, no matter whether it’s a hotel, airline or a trip company.

Cutting out brokers can offer higher value, including free add -ons, flexible cancellation and full access to loyalty programs.

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Direct reservations normally reflect the provision and costs in real time, reducing the danger of outdated information. You will use direct communication and confirmation, making it easier to adjust or solve problems.

If something goes improper, there’s also greater clarity about who’s responsible – it offers a stronger appeal Australian consumer law.

Lower line?

As increasingly more Australians book online, it’s tougher to say what’s trustworthy and what can reject you out of your pocket.

The fall of Traveldream is a reminder. Even on this planet of digital travel offers, it pays to ask: is that this company built to last, not only the departure of the trip, but until you come home?

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The report says that black women have suffered the greatest loss of work

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Although the US economy Over 170,000 jobs were added last monthmore black women lost their jobs than anyone else, in accordance with The latest Bureau of Labor Statistics report.

According to APRIL’s work report, despite the fact that the US unemployment rate remained at 4.2%, black women constituted a complete of 106,000 lost jobs. The employment of black women was immersed from 10.325 million in March to 10.219 million in April. Meanwhile, their unemployment rate increased from 5.1% to six.1%, which is the most significant increase in month to month amongst all demographies. According to data, black women lost 304,000 jobs since February.

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General black unemployment also increased in the third in a row a month in a row from 6.2% to six.3%, the highest rate from January. However, black men noticed a not very disturbing increase in employment-the echoes of unemployment dropped from 6.1% to five.6%.

As for other demographic data, the unemployment rate remained mostly unchanged, including white women who amounted to three.3%, and Latin women who amounted to 4.6%. In addition to the Black Americans, the Latin Americans had the second highest unemployment rate in April at 5.8%, while Asian Americans had the lowest 3.0%. The unemployment rate for white Americans in April was 3.8%.

This report appears after 4 months of Trump’s administration, which cut off every thing and any work function that is remotely related to the diversity, equality and employment and initiatives. The influence began to resound in all corporate America, and plenty of corporations announce the end or change of their politician Dei.

The arrangements on this report are disturbed by black experts.

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“The extraordinary nature of this growth of black women’s unemployment is a testimony and a direct result of anti-dei and anti-black concentration of new administration policy,” William Michael Cunningham, economist and owner of Creative Investment Research, he said about data. “This is clearly harmful to the black community, which we have not seen before.”

Other experts strive for cautious optimism around the general image. Just a few agree that matters are able to deteriorate with such a great amount of flow between ongoing tariff wars and the growing costs of work and life.

“Let’s face it, everything will deteriorate this year, probably later in summer,” said Robert Frick, a company economist from the Federal Credit Union of Navy CNN. “But for now we really have to correct our thumbs and hope that the income and work will continue.”

Usher provides an inspiring address at the University of Emory, receives an honorary doctorate

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The survey shows the growing demand for financial knowledge in schools

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California, High Schools, Fourth of July, raise money, grants, Businesswomen, Financial Literacy, broke


According to the latest Endowment for Financial Education (NEFE) national survey, the strong majority of US adults imagine that financial education needs to be a must -have a part of the highschool curriculum.

Eighty -three percent of respondents claim that their state should require a semester or a 12 months -round course focused on personal funds as a requirement to graduate. The same percentage of people that attended highschool claims that they would really like them to have to participate in such a course once they were students.

The data collected by Nefe in cooperation with Surveyus reflect the consistent results of an identical survey conducted three years ago. This is more state legislators weighing or accepting policy to finance the personal basic part of highschool graduation requirements.

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“This latter survey strengthens long -lasting Support for financial educationWith 4 out of 5 adults in the USA, he agrees along with his meaning, “said Dr. Billy Hensley, president and director of Nefe.” These moods are a testimony of countries that have committed to the requirements and implementation of financial educational programs, thus strengthening today’s students know many adults who would like them to receive at school. “

The survey also revealed a generation gap in access; Only 44% of respondents aged 18–34 stated that their school lacked personal financial classes, in comparison with 77% of individuals aged 65 and older.

Hensley applauded the growing number of nations that introduced the fines of financial education K – 12, calling the movement “a step towards justice and economic strengthening.”

This pursuit of financial skills is especially critical in black communities, where economic differences meet through historical and systemic exclusion from the possibility of constructing generational wealth. According to the Brookings Institution in 2023, in 2022 for every $ 100 in wealth owned by white householdsBlack households had only USD 15, emphasizing the durable and expanding difference in racial wealth.

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In addition, while African -Americans usually tend to proceed education in the desire to mobility up, additionally they bear the disproportionate share of student debt, often without financial tools to administer it.

According to the report, experts say that early, normalized access to private financial education in high schools, especially in underestimated communities, generally is a powerful tool that may help reduce these gaps. Supporters call on legislators to the priority of fair implementation, ensuring that students from all environments are equipped with credit management skills, savings and planning of long -term financial health.

(Tagstranslate) Schools (T) K-12 Education (T) Financial literature

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This article was originally published on : www.blackenterprise.com
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