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‘What you see is what you pay’ |
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Standards body to suspend Singapore travel ads that do not provide full monetary disclosure
By Karen Yue
SINGAPORE – The Advertising Standards Authority of Singapore (ASAS) is getting tough with travel agents and airlines that do not come clean and clearly spell out how they price travel and air fares advertised, in particular non-negotiable charges such as airport tax, insurance, administrative charges and fuel surcharges.
ASAS’s insistence on full monetary disclosure, starting this month, comes in the wake of inconsistencies in full-fare disclosure despite its general media advisory sent out more than a year ago in January 2007.
ASAS chairman, associate professor Eleanor Wong, said travel advertisements which failed to comply would be suspended, a move which had received mixed reactions from the industry.
Prof Wong told TTG Asia the general media advisory on the subject issued last year set out the general guidelines that air fares should reflect all additional charges that had to be paid by travellers when they bought an air ticket.
“The idea is that these are non-negotiable add-ons and should be treated as an integral part of the fare. With the practice of adding fuel and other surcharges becoming prevalent, we thought it would be useful to issue a specific clarification that would apply to the general principles of fair advertising specifically to the travel industry,” she explained.
ASAS called for a meeting with travel agencies and airlines when inconsistencies in full fare disclosure in some travel advertisements persisted, and issued reminders to advertisers.
UOB Travel Planners vice-president, leisure, Ms Eileen Oh, said the regulation was timely since travel agents in Malaysia had already begun practising full-fare disclosure.
“Of course, we have to be sure to include a disclaimer that specifies the prices are subject to change due to adjustments in fuel surcharges and prevailing exchange rates.
“There should be minimal disruptions to our operations. In fact, customers can see at a glance the separate price components and total payable for each package, saving our customer service officers time and effort in the selling process.”
However, critics point out that advertisements will now require more space to accommodate full-fare disclosure and this will raise advertising costs. It will also be operationally tedious for travel agencies to amend advertising copy each time surcharges and exchange rate changed.
CTC Holidays senior vice-president, marketing and PR, Ms Alicia Seah, said the new rule would pose difficulties for agents advertising tour packages that covered several destinations. “A 12-day America Splendour tour relies on different carriers, such as Singapore Airlines, Northwest Airlines and United Airlines, and has different departure dates and pricing during different seasons. Each airline will impose different fuel surcharges and taxes. It will be too costly for agents to provide full details in their ads.”
Chan Brothers Travel spokesman, Ms Jane Chang, added: “We foresee discrepancies in prices at the point of advertising, when consumers make an enquiry at our counters and when their tickets are actually issued. The most accurate fuel surcharge that is applicable to a customer can be determined only when the air ticket is issued and this is usually two weeks before departure.”
Agents hope ASAS will mount education campaigns to help ease consumers into the new advertising format.
Meanwhile, airlines have begun complying with the ASAS regulation and are advertising all-inclusive fares from this month. Tiger Airways, for example, has begun promoting fully inclusive fares between Singapore and Kuala Lumpur.
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