Mundane & Boring Life

Singapore Airlines To Advertise All-Inclusive Prices For Tickets Globally - 21 December 2007

From 1 January 2008, Singapore Airlines will advertise the price of air tickets on an all-inclusive basis, worldwide.

This means, in its advertising, the airline will show the full price payable by the customer at the time of sale, inclusive of all taxes, surcharges and fees.#

In some countries, where it is mandated by law or direction that pricing be shown as all-inclusive, the Airline already complies with these requirements. In others, it is still very much up to the market. However, from 1 January 2008, Singapore Airlines will adopt the all-inclusive fare practice in all markets, irrespective of what competitors do.

Commenting on the reason for the change, Singapore Airlines Executive Vice President Marketing and Regions, Mr Huang Cheng Eng, said the wide variety of extra charges in recent years, and the fact that they now form a greater part of the total price, has led to consumer demand for all-inclusive pricing.

“We will standardise our advertising practices to provide consumers with the full price in all advertisements, wherever we advertise.

“In some markets, this may mean we look more expensive than our competitors at first glance. But we think consumers understand that there are a variety of extras that form part of the ticket price now. And we think it’s time the industry moved to do this across the board.

“In those markets where this practice is not adopted widely, we will take the lead, and give consumers the full picture,” Mr Huang said.

Singapore Airlines extended the policy of all-inclusive price advertising on its website to all country sites in November 2007.

In the interests of transparency, customers will still see a breakdown of what they pay when they book online – the separation of fare, taxes, surcharges and fees will be maintained as part of the booking process.

In some cases, the actual price charged may vary by a small amount on the date of payment. This is caused by exchange rate variations where taxes and charges are levied in a currency that differs from the currency of payment. The all-inclusive advertised price does not include optional charges, such as ticketing fees levied for buying tickets at ticket offices, telephone sales or travel agencies.

#A few countries still levy airport taxes, which can only be paid by the passenger, in cash, at the airport prior to departure. For example, New Zealand, Indonesia, Philippines, Brunei and Turkey.

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