The European Commission on Nov. 1 will enact new regulations for the European Union air transport sector that aim to provide more airfare transparency, standardize air pricing for EU citizens and eliminate some discriminatory pricing practices.
The legislation abolishes price discrimination based solely on the traveler's place of residence within the EU and mandates that published airfares include all taxes and charges at the point of sale. The rule also requires carriers to itemize all fees, surcharges and taxes, and prevents them from assessing "optional additional charges on passengers without their express consent."
"It is vital that all the players keep to the same rules," vice president of the EC with responsibility for transport Antonio Tajani said in a prepared statement. "That is one condition of liberalization in Europe that has been a real success story, with more travel possibilities and lower prices. Fair competition is the key to success. With price transparency, passengers will know in advance how much they are going to pay and will be able to make informed choices."
The legislation "bans price discrimination on the basis of the place of residence or the nationality of the customer or the place of establishment of the travel agent. In practical terms, this means that for the same product—i.e. the same seat on the same flight booked at the same moment—there should be no price differences based on the place of residence or the nationality of the passenger. In the past, such differences have often been observed on airlines' Web sites where residents of one Member State had to book on the country-specific Web site of the airline and where prices could be different."
The U.K.-based Guild of Travel Management Companies is a proponent of the legislation, but according to chief executive Philip Carlisle, some of it is open to interpretation by each EU state. "It should mean that any fare published for a journey starting from within the EU should be purchasable by any citizen within any EU state," Carlisle said. "This should be good news for any travel buyer looking out for the best available deals, as it does not, nor should it, prevent airlines from holding 'sales' within one or more countries. It just allows anyone to buy."
In September, European Parliament passed legislation that revised the computer reservation system code of conduct in order to reduce discriminatory practices by global distribution systems in airfare displays and provide more visibility into airfare anatomies
(BTNonline, Sept. 4).