The high price of cheap travel
Mon 18th Dec 2006

 
 
The ads offer you the world for a few thousand rupees. But when you finally open your wallet, you stand to lose a lot more. A peek into hidden costs

Manisha Singhal, Megha Chaturvedi

Have you been lured by ‘never before’ packages that promise to take you to exotic locales, mysterious caves, island tours and night safaris at never before prices this holiday season? Think again. You might just end up feeling miserable after signing up for a ‘too good to be true’ package. Moreover, you’ll cough up much more money than you hoped to, say Nilesh and Monica Garg, a young couple who recently went on a dream European group tour.


What you pay for and are not to?:
  • • Visa Fee and airport taxes.
  • • Any meals and services unless specified in the itinerary
  • • Change in rates at hotels, transport rates, government taxes or entrance fees. If the mentioned hotels are not available at that moment, than the charges will go up by 5 to 10 per cent or in some cases by 50 per cent and one has no option but to bear it.
  • • Surcharge may be applicable during New Years and Christmas
“After the payments were made we thought that we would have a holiday that won’t need us to dip into our wallets again. But for every experience and visit to landmarks, we were asked to pay up. Obviously after travelling so far you do not want to go back without seeing the places and having the experiences that are representative of those places. We ended up paying much more than what we had planned for. In the end, we had to economise on meals too,” recalls Monica.

There are many more couples and holidayers who are planning unforgettable vacations. According to travel experts, there has been an increase of 15 per cent in the number of outbound tourists going to South East Asia, Australia and New Zealand this holiday season. The three regions in particular have been identified as preferred destinations. And the travel market is abuzz with packages on offer like Disney Land Magic (Hong Kong) - Christmas and New Year specials for Rs22, 608 per person, or an invitation to explore Australia for 10 days for Rs64,999 per person or even an Asian Combo Delight package that would take you to Bangkok, Pattaya and Singapore for just Rs19,872 per person.

The above prices definitely seem to be within reach for most but the fine print that usually goes unnoticed is what the exclusions are about. According to travel expert Rajeev Nangia of TRAC Representations, who specialises in outbound tours, “We as Indians will go in for anything that is priced lower because service cost is not factored in. The fact is that whatever maybe the cost of the basic travel package tour, in the end it has to go up by 20 per cent. This rise will include the visa and ticketing costs and fuel surcharge that would easily be an increase of anything between Rs4,000 and Rs8,000.”

For instance, during a trip to Europe, if you opt for a bus tour what you pay for is just the transportation cost. So it is important to not take the travel agent or operator’s word for granted. “One has to check out the star ratings of the hotels and every other detail of the number of meals and add-ons,” said Nangia.

The reason for this ‘hidden costs’ is that there is fierce competition among the operators who are trying to undercut prices to sell. For first timers, destinations are South East Asia and they graduate to Europe and then to other continents. This is why outbound tourism has seen an increase of 18 to 20 per cent per year and 6.8 million is the number of the outbound tourists, projected to go up by 7.5 million next year end.

According to Sushila Shinde, business head, Travelport, “The cost you see in an advertisement is the cost sans the ticket tax which would come up to a minimum of Rs3000 per city. By the same logic the basic ticketing cost mentioned of Rs39,000 will work out to be Rs55,000 to Rs60,000.” According to her, these cannot be termed as hidden costs. “It becomes difficult to explain the same to the holidayer. Group departures are a little insulated and individual packages do face problems.”

Even when it comes to flying on the domestic circuit, the story is pretty much the same. For that Rs999 from Mumbai to Goa, there’s often a four digit numbers that you will have to pay. This includes a congestion, passenger handling, passenger service fees and airport handling tax. This varies between Rs1,175 and Rs1,225.

Says Anil Dasmunshi, a school teacher, St Lawrence High School, “When I planned my vacation, I saw that the air fares were cheaper than train fares. But I was taken aback on being told the actual sum, it was much more than the ads. I know I have to pay the additional tax, but the airlines should at least tell us how much we are supposed to pay in the beginning.”

Source : DNA

 

 

 
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