The US Department of Transportation is poised to make significant changes to airfare regulations, giving airlines more flexibility in how they display ticket prices.
The current policy, implemented during the Obama administration, requires airlines to show the total ticket price upfront, including taxes and mandatory fees. This has made it easier for travelers to compare prices and know exactly what they're paying for.
Under the proposed rule change, airlines would be allowed to start drawing attention to the lower base fare, as long as the total cost of the flight is displayed clearly. This could lead to a change in how prices are displayed, with the base fare taking center stage.
Consumer advocates are sounding the alarm, warning that this change could make it more difficult for travelers to comparison shop and know exactly what they're paying for. Industry commentator Jason Rabinowitz argued that the change would "break flight shopping" and make it "virtually impossible to comparison shop" since carriers could have more freedom to decide what fare to advertise upfront for a flight.
The US Department of Transportation is also considering a more sweeping change: a possible repeal of its all-in pricing rule that governs the airline sector. A handful of airlines have pushed for this change for years, arguing that the federal government shouldn't dictate how they display ticket prices.
Southwest Airlines, a major carrier, weighed in on the proposed rule change, warning that it could be "extremely disruptive" to the industry. The airline argued that consumers have settled expectations that all government-imposed taxes and fees will be included in the fare in the first display.
Industry analyst Henry Harteveldt cautioned that airlines should be cautious about changing a booking experience that travelers have grown accustomed to over more than a decade. "If an airline is believed by the traveling public to be misleading – to be less than forthcoming, to be even sly in how they present their prices," he said, "I don't think it will serve that airline well."
The public has until July 31 to comment on the proposed rule changes.
