Airline
fuel surcharges between April 2011 and May 2012 rose nearly twice as fast as
oil prices, according to Carlson Wagonlit Travel. Analyzing its own data and figures
from the International Civil Aviation Organization and the International Air
Transport Association, CWT's Travel Management Institute determined that the
price of oil rose 24 percent, yet surcharges on average jumped 53 percent.
"Originally
applied across all fares as a way for airlines to manage highly volatile oil
prices, [surcharges] are now used most often in the corporate market to raise
revenues without raising basic fares," CWT wrote in a recent report.
According
to the travel management company, fuel surcharges now account for 7 percent to 12
percent of companies' total air spend. "Many airlines have stopped
communicating on the mechanics of fuel surcharges and [also stopped] revising
them downward while oil prices have been steadily dropping," CWT added. In
the United States, the Department of Transportation in February issued a warning
to airlines that they "must accurately reflect
the actual costs of the service covered."
The CWT
report pointed to another problem for travel managers: global distribution
systems code surcharges differently at points of sale, making it difficult to consolidate
the relevant data. Sixteen percent of 114 travel managers surveyed by CWT
between November 2011 and May 2012 said they track surcharges.
CWT
recommended that buyers make more of an effort to gather and track data, and
then use that information to negotiate a waiver or reduction. "In recent
months, some airlines have been willing to negotiate these surcharges, offering
a back-end rebate at the end of the year," according to the report.