Is travel now only for the rich?
I recently purchased some tickets from Bermuda to New York’s John F Kennedy International Airport one way — I have a travel credit for the return portion — and I was blown away by the very reasonable base fare of $66.
However, beyond this simple base fare was the section called “other charges”, charges that changed my ticket price from $66 to $236. What was a good deal quickly became significantly more expensive, and I still needed to factor in my baggage fee.
I remember reading an article during the peak of Covid-19, which stated that once the virus ceased to be classified as a pandemic, then travelling would be much more expensive, and prices for everything travel-related would increase significantly, so much so that it would be difficult for the average person to afford to travel like they used to.
The luxury of travelling multiple times per year would slowly be replaced by one or two trips to far less exotic destinations, but enough to give the traveller some downtime and a break from the norm.
Undoubtedly, inflation is impacting the expenses of all things travel-related. However, we also must acknowledge and accept that Covid-19 caused significant financial strain, not just on individuals but also decimating the travel industry as a whole.
Everything halted; borders were closed. That said, we also sometimes fail to remember that the decision to halt movement also impacted the top end of the food chain – government revenue.
Government revenue was severely affected by Covid-19, whether due to introducing programmes to ease the financial burden for residents, or simply losing the ability to collect revenue due to the temporary changes in infrastructure: for example, airports closing, cruise ship cancellations, etc.
The impacts of those decisions made by governments to protect their residents during the pandemic are still being felt today. As a result, people around the world are noticing and feeling the financial effects on almost anything that requires money changing hands.
With all that said, how does this relate to those “other charges” on the bottom line of my $66 base fare ticket?
Let’s have a look at what caused a $170 increase from my base fare (information taken directly from my airline ticket in 2024):
Bermuda – Aviation Security Fee: $18.65
Bermuda – Government Passenger Tax: $64.93
E6 Tax: $38.70
Bermuda – Passenger Facility Charge: $7.75
United States – Transportation Tax: $22.20
United States – Animal and Plant Health Inspection Service Fee: $3.83
United States – Immigration and Naturalisation Fee: $7
United States – Customer User Fee: $6.97
I don’t recall “other charges” ever being this high – surpassing the actual cost of the base fare – and in this case 2½ times the amount. Bluntly, it’s pretty shocking.
That once cheap one-way ticket to New York (JFK) is being blown out of all proportion by government fees and taxes.
In reality, it is not just the aviation industry but the travel industry as whole, including car rentals, hotels, entry fees etc. The norm appears to be price plus “other charges”, and those “other charges” are beginning to make a difference when consumers decide to travel.
Given all of this, can you afford to continue travelling?
Condé Nast Traveller recently published an article titled “The golden rules of affordable travel” and suggested several great ways to continue to make travelling part of your life, which are listed below. As you can see, much of it is about research and planning.
1, Book flights strategically
• Search for flights in the browser’s incognito mode to avoid cookies and prevent airlines from raising the price on your most-searched flight routes
• Use price comparison websites so you can compare different airline prices
• Don’t pay for seats – wait for the window of “free selection”, which is often 24 hours in advance of travel
• Travel at off-peak times; peak travel times are significantly more expensive
2, Don’t overlook travel agents
• Travel agents can get really good deals; they also have the ability to create packages that include flights and hotels for a lot less
3, Think outside the box with accommodation
• Hotels are lovely, but there are other forms of accommodation out there: these include Airbnb or even making your trip a mobile experience with camper travel
4, Change the way you eat out
• Instead of eating every meal in a restaurant or café, consider having a picnic and picking up local produce from the market to enjoy. Alternatively, look for accommodation that offers a free breakfast to reduce the overall expense of meals
5, Choose one destination
• I think most of us have at one time thought: “well, as I’m going there, I might as well see a few different places”. Instead, focus on one destination and really see all of it. This way, you will be able to discover local living, including the more affordable and less touristy restaurants and under-the-radar sites to visit
6, Choose your attractions wisely
• The most famous gallery in the city may be tempting; however, if you research further, you will find plenty of cheaper (or free) options available, showcasing similar work. That said, there are definitely some attractions worth the price, so you will need to plan.
At the end of the day, we lack the ability to negotiate the “other charges”, so we must learn to navigate it and be a little more resourceful. If you love to travel and want to continue to make it part of your life – as I certainly do – then with a bit more research and careful planning you should be able to keep the travel bug alive.
Reference
Quaedvlieg, L & Morelli, O (2024) The golden rules of affordable travel. Available from: https://www.cntraveller.com/article/golden-rules-of-affordable-travel [Accessed 11 August 2024].
• Carla Seely has 24 years of experience in the financial services, wealth management and insurance industries. Over the course of her career, she has obtained several investment licences through the Canadian Securities Institute. She holds ACSI certification through the Chartered Institute for Securities and Investments, UK; QAFP through FP Canada; and AINS through The Institutes. She also has a master’s in business and management
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