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BBC News: Credit and debit card surcharges 'are excessive'

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  • NFH
    NFH Posts: 4,413 Forumite
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    malkie76 wrote: »
    But they aren't. Price is clear before clicking the confirm button. If something was added after that then you'd have a point. Personally I love the fact that they are transparent about their prices and give you the abiility add or remove components you don't need.
    You've misunderstood. The customer is enticed into the booking process by the low advertised fares. The customer spends a significant amount of time choosing appropriate flights and entering details of passengers. The customer believes that he is about to book a flight for the price displayed. Then suddenly at the end at the payment stage, Ryanair adds an admin charge. Not wanting to abort the booking after the time and effort already invested in the booking process, the customer reluctantly pays up the additional charge. If the full price had been advertised at the beginning, then the customer might have invested his time and effort in booking with another airline. This drip pricing approach is a dishonest way for Ryanair to do business; they should be up-front about the full cost of the flight from the outset.
  • malkie76
    malkie76 Posts: 6,170 Forumite
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    What am I misunderstanding? Do RyanAir add a fee after the customer click confirm, or before they click confirm ?

    It's before hence the customer is fully aware of the fee prior to clicking confirm.
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  • NFH
    NFH Posts: 4,413 Forumite
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    malkie76 wrote: »
    It's before hence the customer is fully aware of the fee prior to clicking confirm.
    That's not good enough. The customer should be made aware of the full fare from the outset. Do you disagree with that principle?

    Ryanair gets the customer to the payment stage through false pretences and then asks for more money. Many customers pay up reluctantly because they can't be bothered to start the whole process again with another airline. That's how drip pricing works - an unethical way to deceive customers into paying more (and yes, with a confirm button) than they believed they were about to pay during previous stages of the booking process.
  • malkie76 wrote: »
    What am I misunderstanding? Do RyanAir add a fee after the customer click confirm, or before they click confirm ?

    It's before hence the customer is fully aware of the fee prior to clicking confirm.

    You are quite right. Ryanair do not add charges after you commit to pay. The problem is that they add so many charges between the headline "low fare" that entices the customer, and the point at which you click confirm. NFH has found an excellent link about "drip-pricing" http://www.out-law.com/page-11638 that makes the points much clearer than I can.

    Personally, I have benefitted greatly from Ryanair's strategies. Because I have used certain credit cards, (and printed my own paperwork, etc, etc), I have enjoyed fares that Ryanair could not afford to extend to everyone. Great :D. But this does not make it right, and I think these card fees should be stopped.

    David
  • malkie76
    malkie76 Posts: 6,170 Forumite
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    NFH - I'm asking a pretty straight forward question - do RyanAir tell you the full price before or after you click confirm? Furthermore, isn't the final price dependent on the customers personal preferences which prevents the advertisment of a 'final' fare upfront ?
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  • NFH
    NFH Posts: 4,413 Forumite
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    malkie76 wrote: »
    NFH - I'm asking a pretty straight forward question - do RyanAir tell you the full price before or after you click confirm?
    Yes, before you click Confirm. The full price is shown at the final stage. However, drip pricing is not about whether the full price is shown at the final stage, but about whether the full price is displayed at intermediate stages. That is the point you have failed to understand.
    malkie76 wrote: »
    Furthermore, isn't the final price dependent on the customers personal preferences which prevents the advertisment of a 'final' fare upfront ?
    And guess what - the default preference (unless the customer knows how to change it) is to hide the final fare upfront. There's certainly no obvious way to change the preferences from what I can see.
  • malkie76
    malkie76 Posts: 6,170 Forumite
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    edited 13 February 2011 at 6:51PM
    So you conceed that the final fare is transparent, and that it is dependent on what extras etc the customer wants?

    What you call drip pricing I personally see as a good way to tailor individual flights rather than be subjected to things you don't want or need that you are forced to accept with major airlines.

    Anyways, your opinion is moot as there are always other choices of carrier, so no one is ever forced to choose or even consider RyanAir.

    What exactly is your point?
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  • NFH
    NFH Posts: 4,413 Forumite
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    malkie76 wrote: »
    So you conceed that the final fare is transparent, and that it is dependent on what extras etc the customer wants?
    No, I do not concede that the final fare is transparent, because it is deliberately hidden until the customer reaches the payment stage.

    The problem with drip pricing is precisely lack of transparency.
  • NFH
    NFH Posts: 4,413 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    malkie76 wrote: »
    What exactly is your point?
    If you haven't perceived that yet, then you haven't been paying much attention to what has already been discussed. Please don't ask questions that have already been answered earlier in the thread.

    I quote myself:
    NFH wrote: »
    You've misunderstood. The customer is enticed into the booking process by the low advertised fares. The customer spends a significant amount of time choosing appropriate flights and entering details of passengers. The customer believes that he is about to book a flight for the price displayed. Then suddenly at the end at the payment stage, Ryanair adds an admin charge. Not wanting to abort the booking after the time and effort already invested in the booking process, the customer reluctantly pays up the additional charge. If the full price had been advertised at the beginning, then the customer might have invested his time and effort in booking with another airline. This drip pricing approach is a dishonest way for Ryanair to do business; they should be up-front about the full cost of the flight from the outset.
  • malkie76
    malkie76 Posts: 6,170 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Sorry, but the final fare will be subject to personal choices, and the individual needs of the customer - how can that possibly be advertised upfront?

    You claim that the final fare isn't transparent? Then what is the number in the box when you click confirm?
    Legal team on standby
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