U.S. Department of Labor Cracking Down on Airfare Tour Pricing

February 9, 2007

U.S. Department of Labor Cracking Down on Airfare Tour Pricing
Feb. 9, 2007 – NTA has learned through USTOA that the U.S. Department of Transportation is cracking down on tour operator pricing, specifically how airline fuel surcharges are priced in tour advertisements.

The Department has mandated that per-person government imposed or approved taxes and fees, such as Passenger Facility Charges , international departure taxes, U.S. Customs, Immigration and Security fees, and foreign airport taxes may be broken out of the advertised fare, provided the amounts of such fees and charges are clearly stated elsewhere in the advertisement.

Excise taxes and federal excise taxes, however, must be included in the advertised fare. This is because they are charged on a percentage, not a per-passenger basis.

Fuel surcharges may never be broken out from an advertised fare unless imposed by a government agency on a per-passenger basis. Advertised tour prices, if air is included in the package, must include airline imposed fuel surcharges.

Violations of these provisions have resulted in fines of up to $25,000 per infraction.