Airline Credit Card
This is a charge that will be seen at Air France soon as well. Watch for other Euro-carriers to do the same. Credit card charges have been identified as a next item for the airline's distribution cost controls. Credit card firms are going to get squeezed.
Note that no charge applies to wire transfers. As soon as airlines figure out a way to enable online bank-to-bank transfers via their websites, credit card transactions are going to see even higher fees. Airlines are going to break out every cost they used to swallow - either the sales channel will have to eat the charges (like travel agents) or the travelers will have to pay them. Ultimately, of course, the traveler pays. However, as the web has shown, travelers learn fast. Streamlined transactions are coming because the traveler will not pay a dime more than necessary. And many costs in the distribution chain are simply unnecessary.
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KLM will introduce a charge of 7.50 euros ($9.46) for credit card bookings made in the Netherlands of its cheapest economy class fares, it said on Monday. The per-passenger charge applies only for bookings made directly with KLM, including Internet bookings, on European and intercontinental flights, the airline said in a statement and reported by Reuters news agency. KLM will simultaneously on August 1 introduce a new payment method for Dutch customers, allowing them to pay by a wire transfer without extra charges. KLM said the charge was necessary because the costs of credit card payments were too high in relation to the cheapest economy class fares.
Airline Credit Card
posted by News at 4:00 AM
Note that no charge applies to wire transfers. As soon as airlines figure out a way to enable online bank-to-bank transfers via their websites, credit card transactions are going to see even higher fees. Airlines are going to break out every cost they used to swallow - either the sales channel will have to eat the charges (like travel agents) or the travelers will have to pay them. Ultimately, of course, the traveler pays. However, as the web has shown, travelers learn fast. Streamlined transactions are coming because the traveler will not pay a dime more than necessary. And many costs in the distribution chain are simply unnecessary.
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KLM will introduce a charge of 7.50 euros ($9.46) for credit card bookings made in the Netherlands of its cheapest economy class fares, it said on Monday. The per-passenger charge applies only for bookings made directly with KLM, including Internet bookings, on European and intercontinental flights, the airline said in a statement and reported by Reuters news agency. KLM will simultaneously on August 1 introduce a new payment method for Dutch customers, allowing them to pay by a wire transfer without extra charges. KLM said the charge was necessary because the costs of credit card payments were too high in relation to the cheapest economy class fares.
Airline Credit Card
posted by News at 4:00 AM
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