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David Neal

Low-cost airlines rack up £265,000 a day in ‘admin fees’

The additional charges that holidaymakers pay when booking a flight via debit and credit card payments is generating thousands of pounds for budget airlines.

**The additional charges that holidaymakers pay when booking a flight via debit and credit card payments is generating thousands of pounds for budget airlines. **

Low-cost carriers are pocketing £265,000 on a daily basis, which may come as shocking news to travellers.

Last year, a collection of consumer watchdogs campaigned to stop airlines from charging British travellers exorbitant amounts in hidden fees. The group called on the UK Government and leading financial bodies to take measures to remedy the situation.

Fortunately for consumers, the Government has already taken several steps to outlaw the overpriced fees and charges. This is set to come into effect by the end of 2012.

Until changes to the law are realised, figures from Which? magazine predict that budget airlines are still set to make £65 million in profit from the credit and debit card fees.

Ryanair has been named as one of the worst offenders as it charges up to £48 in return fees for a family of four making a booking using credit and debt cards. Further cases include other airlines charging passengers for each leg of the journey, despite both the outgoing and inbound flights being booked in a single payment.

Other companies, such as EasyJet, are making alterations to their policies ahead of the change in law. The airline has added an extra £9 to their ticket price, doing away with the additional admin fee now.

Enjoying of a cheaper holiday

Considering this news and the current economic situation, it is important for British travellers to plan their holidays in advance and compare prices in order to save as much money as possible.

UK holidaymakers should compare travel insurance and car-hire offers in advance, so that they can secure the best deals.

Car hire insurance, for instance, is almost always cheaper through price comparison sites than buying from any car hire rental company or broker. Compare car hire insurance to find the best deal and reduce the price of your holiday.