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Ryanair introduces extra booking fee Ryanair introduces extra booking fee
(10 days later)
Budget airline Ryanair has added another charge to its plethora of fees, claiming that by doing so it is complying with Office of Fair Trading rules designed to make airline prices more transparent.Budget airline Ryanair has added another charge to its plethora of fees, claiming that by doing so it is complying with Office of Fair Trading rules designed to make airline prices more transparent.
From 30 November all passengers who pay by credit card will be charged a 2% "processing fee". This comes just weeks after the airline announced UK passengers would no longer be able avoid the £6 admin fee by paying with a Ryanair Mastercard.From 30 November all passengers who pay by credit card will be charged a 2% "processing fee". This comes just weeks after the airline announced UK passengers would no longer be able avoid the £6 admin fee by paying with a Ryanair Mastercard.
The £6 fee, which was applied to debit and credit card customers, will be included in the advertised price of a single flight, meaning a family of four currently paying £320 for four return flights will see the advertised cost of those flights increase by £48 to £368. If they pay by credit card they will now also incur an extra £7.36 charge.The £6 fee, which was applied to debit and credit card customers, will be included in the advertised price of a single flight, meaning a family of four currently paying £320 for four return flights will see the advertised cost of those flights increase by £48 to £368. If they pay by credit card they will now also incur an extra £7.36 charge.
The airline is allowed to introduce the card processing fee despite an OFT crackdown on confusing airline prices, as long as it makes it clear to customers at the point of payment.The airline is allowed to introduce the card processing fee despite an OFT crackdown on confusing airline prices, as long as it makes it clear to customers at the point of payment.
In June 2011, the OFT called on the government to ban "rip-off" surcharges levied on debit and credit card transactions by travel companies, after it found considerable evidence of "drip pricing" practices.In June 2011, the OFT called on the government to ban "rip-off" surcharges levied on debit and credit card transactions by travel companies, after it found considerable evidence of "drip pricing" practices.
At the time Ryanair denied its £6 "admin fee" was a card charge in all but name and claimed it would not therefore be affected by any crackdown on such fees. However, in July 2012 the airline and 11 others agreed after much protest to include debit card surcharges in the headline ticket price rather than surprise consumers at the end of the booking process.At the time Ryanair denied its £6 "admin fee" was a card charge in all but name and claimed it would not therefore be affected by any crackdown on such fees. However, in July 2012 the airline and 11 others agreed after much protest to include debit card surcharges in the headline ticket price rather than surprise consumers at the end of the booking process.
They also agreed to make surcharges for credit cards clearer and easier to find during the booking process.They also agreed to make surcharges for credit cards clearer and easier to find during the booking process.
Ryanair will, from tomorrow, add the £6 fee to the upfront cost of a single flight and add an extra 2% credit card charge fee at the end of the booking process.Ryanair will, from tomorrow, add the £6 fee to the upfront cost of a single flight and add an extra 2% credit card charge fee at the end of the booking process.
"To cover our credit card processing costs and to comply with the UK OFT's recent ruling we are introducing a 2% credit card handling fee from 30 November 2012," the airline's spokesman Stephen McNamara said."To cover our credit card processing costs and to comply with the UK OFT's recent ruling we are introducing a 2% credit card handling fee from 30 November 2012," the airline's spokesman Stephen McNamara said.
"Passengers can avoid credit card fees by paying for their ultra-low fares with a debit card or a German ELV transfer.""Passengers can avoid credit card fees by paying for their ultra-low fares with a debit card or a German ELV transfer."
An ELV transfer is an electronic transfer system that can be used by anyone with a German bank account.An ELV transfer is an electronic transfer system that can be used by anyone with a German bank account.
The OFT said it had not told any airline they must introduce new payment charges, increase their credit card charges or scrap any discounts.The OFT said it had not told any airline they must introduce new payment charges, increase their credit card charges or scrap any discounts.
"We took action to make sure debit card charges are included in the headline price and are transparent and not sprung on shoppers towards the end of the booking process," a spokeswoman said."We took action to make sure debit card charges are included in the headline price and are transparent and not sprung on shoppers towards the end of the booking process," a spokeswoman said.
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