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

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FILE - Passenger drop off their baggage at United Airlines in C Terminal at George Bush Intercontinental Airport, Thursday, Dec. 21, 2023, in Houston. The Biden administration issued final rules Wednesday, April 24, 2024, to require airlines to automatically issue cash refunds for things like delayed flights and to better disclose fees for baggage or canceling a reservation. (Brett Coomer/Houston Chronicle via AP, File)

After the U.S. Department of Transportation released new rules regarding airfare refunds and disclosure of "junk fees," airlines and travel agencies are working on the best ways to comply moving forward.

The new rules affect air travel purchases both before and after a flight, so carriers and ticket sellers must change the way tickets are presented and sold.

There's a 60-day window between the time the rules are entered into the federal register (about May 1) and when they go into effect (around July 1). In the meantime, ticket sellers and airlines will be working on their websites to comply with the new rules.

[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 they don't stack up well in comparison to the European Union's rules on airline delays and cancellations.

For example, if you're flying to, from, or within Europe and your flight is delayed by more than three hours, you may be entitled to compensation between 250 euros and 600 euros. There are exceptions to the policy, including air traffic management, weather and security risks.

In addition to flight delays, European regulations are specific when it comes to cancellations, overbookings and lost or damaged luggage.

The DOT's new rules are a reaction to the march toward "drip pricing" by travel providers, where there's a new charge at every turn. Airlines are not the only category that has baked in these charges. Car rental firms and hotels also hopped aboard this bandwagon, which nets the industry billions of dollars in what's called "ancillary revenue."

The DOT's new rules are designed for infrequent travelers who book their own tickets online. Travel agents routinely issue refunds for flight cancellations. "I've never had an airline tell me no," said Nate Vallier of Alaska Travel Desk. "Dealing with refunds and changes is part of our service," he said. Travel agents usually charge $35-$50 to issue a ticket.

The new rules, though, will focus not only on trip components that are covered like baggage delays and trip cancellations. Going forward, the DOT's attention will cast light on practices that are not yet covered — but should be.

For example, DOT Secretary Pete Buttigieg called out airlines for charging families with small children extra fees to sit together. Several air carriers already have amended their policies to accommodate families traveling together without extra fees. But for the rest of the carriers, the DOT plans to introduce new rules restricting the policy. In the meantime, the DOT publishes an Airline Customer Service Dashboard to help travelers.

One questionable method airlines use to market tickets is to promote one-way tickets. For example, Alaska Airlines markets one-way tickets from Anchorage to Paine Field for $119 one-way between May 24 and June 14. That's a great price, especially now that Alaska has reintroduced the nonstop flights.

Here's the rub: There are just two days when a comparable northbound flight is available for $121: May 25 and 26. For most days, the return flight costs much more: $231 one-way.

Between Anchorage and Denver, both Alaska Airlines and United Airlines offer nonstop flights. Between May 25 and June 12, both carriers offer a $167 one-way fare for a southbound flight.

Woe to the traveler who fails to seize the one day a comparably-priced northbound flight is available (May 27). Most other available northbound dates price out between $341 and $399 one-way.

If airlines are marketing one-way flights to a destination, should travelers expect a return ticket for roughly twice that amount? For more than just a couple of days? I think so.

Checked luggage fees continue to be a troublesome point for travelers. Alaska Airlines noted that in developing its Club 49 plan for Alaska residents. For trips to or from Alaska, members get two free checked bags. Delta copied the plan and offered two free checked bags to SkyMiles members.

Outside of their flights to Alaska, both Alaska Airlines and Delta charge $35 for the first checked bag. American Airlines and United charge $40. It's no surprise that travelers will go to great lengths to carry their bags on board rather than pay the fee. It seems the airlines have created their own carry-on luggage crisis in their quest for more ancillary revenue.

More and more, travelers are able to connect to the in-flight internet, in addition to an increasing selection of in-flight entertainment. But the pricing often does not reveal the true cost to travelers. Alaska Air has equipped more of its fleet with high-speed satellite-based Wi-Fi and priced it at $8 per flight. If you're flying on one of the carrier's many nonstop flights to Seattle, San Francisco, Minneapolis, Chicago or New York, that's great. But if you change planes in Seattle or Portland on the way, the cost comes out to $16.

Condor Air is flying new planes to Anchorage from Frankfurt this year, the Airbus 330-900neo. The aircraft is equipped with high-speed Wi-Fi all the way over the North Pole. But you have to dig pretty deep to find how much they charge: 35 euros each way.

That's about the same cost as American's trans-Atlantic flights and Singapore Air's flights from the West Coast to Singapore. On these long-haul flights, the free movies are a better value!

Delta offers free in-flight Wi-Fi for SkyMiles members.

There are many other points in your journey where fees or spendy options are surprising or shocking. Last month I had lunch at the New Orleans airport. We had a couple of sandwiches, two orders of fries and two beers. The cost, before the tip, was $91.08. Other readers wrote me about bottled water at the Las Vegas airport for more than $5 per bottle. These issues are not covered by the DOT. But some airports, like Portland's, have a "street pricing" promise so there's no airport premium.

On the island of Kauai at the Grand Hyatt, the prices are pretty high ($850 per night). But on top of that, there is a $55 per day resort fee. A mid-week car rental in Seattle next month costs at least $105, including all the fees.

Travel is expensive and it's trending pricier still. Part of that price is coming out of your budget. But when travel companies make it tougher to compare and plan your trip and evaluate the true cost, that's an extra cost in time and aggravation. That's what the recent DOT rules aim to address, in addition to holding companies accountable for their promises.