February 3, 2012

A new federal law requires airlines to advertise the true price of tickets, including all the extra fees. So, when an airline advertises a fare, it must include all the mandatory fees and taxes for the government and airport facility.

However, airlines, hotels and rental car companies have been charging billions of dollars of add-on fees to boost revenue for many years. In 2010, airlines posted more than $3.4 billion in baggage fees alone, and hotels raked in over $1.7 billion in extra fees.

How they spend your money

Fees can add up for the frequent business traveler.

• Mandatory baggage-handling fees
• Resort fees
• Early check-in fee
• Mandatory service tips
• Phone-reservation fees
• Shuttle-service fare
• Baggage-holding fees
• Energy surcharges
• Newspaper fee
• Room-block fees
• In-flight pillows, blankets and headphones
• Printed boarding passes
• Advanced seat-selection fees

Stop breaking the company travel budget and begin saving. Here are 10 obnoxious fees and how to avoid them:

1. Taxis take you for a ride Cha-ching: $10 plus. Many taxi drivers that pick up travelers from airports don’t take the most direct route to that location. A ride to or from McCarran International in Las Vegas can range from $15 to $35, depending on the route the driver takes.

   The fix:Use the GPS on your smartphone to plot the most direct route, even if you are new to town. Be a back seat driver and tell the taxi exactly the roads you want to go. Make sure they stick with it.

2. Internet connect Cha-ching: $10 to $15. In an upside-down world, the more expensive hotels typically charge daily for access to the Internet.

   The fix: Use a cellular connection to your laptop or go to a nearby coffee shop, restaurant or bookstore that offers free Wi-Fi service.

3. Checking bags Cha-ching: $25. It's the granddaddy of all fees. Most airlines charge upwards of $25 to check a bag (except Southwest).

   The fix: Premium-travel members are not charged a fee for the first bag or two. Alternately, if the bag is small enough, bring it through security and check it at the gate where they don't charge a fee. If the bag is too big, it may make sense to ship it FedEx to your hotel location ahead of time.

4. Carryon bags Cha-ching: $20. Spirit Airlines started to charge more than $20 to carry a bag on board. It expects to generate more than $50 million from this practice.

   The Fix: While traveling Spirit, make sure the bag fits underneath your seat or switch to another airline where the total travel cost is lower.

5. Returning your rental car early Cha-ching: $15. Dollar charges $15 for returning a car a day early.

   The fix: Ask the agent the rules before checking out the car. A good backup plan is to video tape them confirming this.

6. Keeping it safe Cha-ching: $1.50. Many Red Roof Inns automatically add $1.50 to the traveler’s bill for a safe in their room, even if it is not used. The hotels call this a “safety warranty fee” to offset the cost of their insurance policy. What was that?

   The fix: Ask the hotel to remove it at checkout.

7. Restocking the mini-bar Cha-ching: $6. Many hotels now charge not only outrageous prices for what’s in the mini bar, but an overall restocking fee. Some hotels even charge an “unstocking fee” to clear out the mini bar before a family arrives.

   The fix: BYOB.

8. Swimming Cha-ching $2. Want to use a plush towel at the pool? Be prepared to pay for the comfort.

   The Fix: Carry one from your room or learn to air dry.

9. Thirsty for water Cha-ching: $5. This courtesy is usually expensive unless you are part of the hotels frequent-stayer program. Expect to pay movie theatre prices for the bottled water.

   The fix: Use the free cups provided by the hotel and the faucet.

10. Renting a car Cha-ching: $16- $50. Rental-car agents are trained to upsell the customer for a bigger car or the add-on insurance. They will also try to sell a tank of gas.

    The fix: Before renting, check to see if your own car insurance covers rental cars or your credit card company does. Make sure you also fill the car with gas or be prepared to pay almost $10 a gallon for them to refill it.

Even though the airlines are supposed to disclose their fees, the more you know about what the less visible fees, the more you can save.

The most outrageous extra fee we've heard of was announced by Ryanair, which planned to charge to use the bathroom on their flights. To date, the fee has never been implemented. However, the airline did remove bathrooms to put in more seats.

What fees infuriate you the most? How do you get around them?

Related Topics

• Money

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Barry Moltz, Article, business travel, hotels, travel expenses, airlines, Southwest, Spirit Airlines, Ryanair, Red Roof Inns