New DOT rules should help travelers determine the true cost of their trip

After the U.S. Department of Transportation announced new rules regarding airfare refunds and “junk fee” disclosures, airlines and travel agents are grappling with how best to stay compliant going forward.

The new rules will impact the purchase of air travel before and after a flight, requiring airlines and ticket sellers to change the way they present and sell tickets.

There is a 60-day window from the time the rule is entered in the Federal Register (approximately May 1st) until the effective date (approximately July 1st). In the meantime, ticketing companies and airlines will try to comply with the new rules on their websites.

[The new U.S. airline rules on fees and refunds are the talk of the travel world. Here’s what to know.]

Consumer advocates say the new rules are a step in the right direction. But compared to the European Union's rules on airline delays and cancellations, they don't fare very well.

For example, if your flight is delayed for more than three hours to, from, or within Europe, you may be entitled to compensation of between €250 and €600. There are exceptions to this policy, including air traffic control, weather, and security risks.

In addition to flight delays, European regulations are also special when it comes to cancellations, overbooking, and lost or damaged baggage.

The DOT's new rules are a response to efforts at “drip pricing,” where travel companies charge new fees each time. Airlines aren't the only ones incurring these fees. Car rental companies and hotels also jumped on the bandwagon, reaping billions of dollars in so-called “ancillary revenue” for the industry.

DOT's new rules are designed for infrequent travelers who book their own tickets online. Travel agents usually issue refunds for flight cancellations. “I've never been told no by an airline,” says Nate Vallier of the Alaska Travel Desk. “Handling refunds and changes is part of our service,” he said. Travel agents usually charge a fee of $35 to $50 for ticket issuance.

However, the new rules don't just focus on eligible elements of travel, such as baggage delays and trip cancellations. Going forward, DOT will likely shed light on practices that have not yet been addressed but should be.

For example, DOT Secretary Pete Buttigieg called out airlines that charge extra fees for families with small children to sit together. Several airlines have already amended their policies to accommodate family travel at no additional charge. But for the remaining carriers, the DOT plans to implement new rules that will restrict the policy. In the meantime, DOT is rolling out an airline customer service dashboard to assist travelers.

One questionable method airlines use to sell airline tickets is advertising one-way tickets. For example, Alaska Airlines will sell one-way tickets from Anchorage to Paine Field from May 24 to June 14 for $119 each way. This is a great deal, especially now that Alaska has resumed nonstop flights.

Here's the problem. His only two days, May 25th and 26th, are when similar northbound tickets are available for $121. On most days, round-trip tickets cost much more at $231 each way.

Alaska Airlines and United Airlines both offer nonstop flights between Anchorage and Denver. From May 25 to June 12, both airlines will offer one-way fares for southbound flights for $167.

Travelers who miss the day (May 27) when comparably priced northbound tickets are available are out of luck. Other northbound flights cost between $341 and $399 one-way.

If an airline sells a one-way ticket to a destination, should a traveler expect a round-trip ticket to be about double that price? More than just a few days? I think so.

Checked baggage fees remain a sore point for travelers. Alaska Airlines kept this in mind when developing the Club 49 plan for Alaska residents. When traveling to or from Alaska, members receive two free checked bags. Delta Airlines copied this plan by offering SkyMiles members two free checked bags.

Outside of flights to Alaska, Alaska Airlines and Delta Air Lines both charge $35 for the first checked bag. American Airlines and United Airlines charge $40. It's no surprise that travelers go to the trouble of carrying their luggage on board instead of paying for it. Airlines appear to have created a carry-on baggage crisis of their own in search of more ancillary revenue.

In addition to increasing in-flight entertainment options, travelers are increasingly able to connect to the in-flight internet. However, pricing often hides the true cost to travelers. Alaska Airlines has equipped more of its planes with high-speed satellite-based Wi-Fi, setting the price at $8 per flight. That's great if you have one of the many nonstop flights to Seattle, San Francisco, Minneapolis, Chicago, and New York. However, if you change planes at Seattle or Portland along the way, the cost will be $16.

Condor Airlines will be flying a new plane, the Airbus 330-900neo, from Frankfurt to Anchorage this year. The aircraft is equipped with high-speed Wi-Fi all the way beyond the North Pole. However, you'll have to dig pretty deep to find out the prices. It costs 35 euros one way.

That's about the same price as a transatlantic flight on American Airlines or a flight from the West Coast to Singapore on Singapore Airlines. Free movies are even better value on long-haul flights like this.

Delta Air Lines offers free in-flight Wi-Fi to SkyMiles members.

There are many other points along the journey where you may be surprised or shocked by prices and expensive options. Last month I had lunch at the New Orleans Airport. We ordered two sandwiches, two fries, and had two beers. The cost before tip was $91.08. Another reader wrote to me about how bottled water at the Las Vegas airport costs him more than $5 a bottle. These issues are not covered by DOT. But some airports, like Portland, promise “street pricing,” so there's no airport premium.

Rates at the Grand Hyatt on Kauai are quite high ($850 per night). However, in addition to that, there is a resort fee of $55 per day. A midweek rental in Seattle next month will cost you at least $105, including all fees.

Travel is expensive, and it's about to get more expensive. Some of that price is out of your budget. But when travel companies make it more difficult to compare and plan trips and assess real costs, the extra cost of time is compounded. Recent DOT regulations aim to address this, in addition to holding companies accountable for their promises.