Really unhappy!

I'm unhappy! This blasted credit card surcharge I think is an unfair and punitive add on that, I know, most holiday companies penalise customers for the convenience of paying for their holiday by credit card.

As a Bank Manager, I do know that the credit card companies pass this charge to the retailers in general, and some choose to pass this on to the 'valuable' customer, most notably, as said, the travel industry.

My current holiday, 17 nights in the Grand Floridian (Disney complex, Florida) over Christmas/New Year, flying UCS is costing a pricley sum of just over £9000 - quite a lot of money, and then coming to pay for it I am advised that there will be a 1 1/2% surcharge, no maximum, applicable! Whilst this is £135, and I guess a small amount in comparison to the total cost, I am so reluctant to pay this ransome - I am paying a lot for this holiday and have spent countless thousands before hand with VA/VH, so why must I pay still more - arghhh! I know I can pay for it by debit card, but at this time, I do not have that sort of cash readily available (I guess few do...correct me if I am wrong!!) so I like to give myself an 8 week payment holiday by paying for it on credit card.

Previously when paying by CC I have had to pay this surcharge on the deposit only: upon coming to pay the remainder, they have not taken it - this time it is different. Last year I booked a round the world trip through Thomas Cook (it was a complex trip and I thought it would be easier to use them) and this holiday cost considerably more, but I was able to negotiate a waiver of this fee, but VH were having none of it.

I know, I know, I am ranting on a bit, but I do get cross (really?!)about these fees. I have written a mail of complaint (in a nice as possible tone) and have just been advised that as a 'gesture of goodwill', they will give me a credit note of half of it, and whilst it is not really what I would have liked, it is something, and I have gratiously accepted it.

Would it not be fair those Silver and above or FF to have this fee capped or waived as a loyalty thing? It would certainly make me and others happier and more likely to come back, but I guess since that most other companies generally take this, they know that people will shut up and pay up whatever.

There, phewwww, I feel (a bit) better now that I have that off my chest! Any comments?

[Nottingham Nick]

Ian

Whilst I do not disagree that it is annoying, surely it is a simple matter of economics. VS / VH are in their industry in order to make a profit.

When they determine the price of the product, they take all factors into account when they set the price. If you, the customer, choose to pay by credit card and the credit card company pass on a 1.5% charge to VS / VH, what are they supposed to do?

Unless I am missing something, the only way to avoid charging customers this fee would be to put up prices right across the board.

As you say, you are a Bank Manager and you are aware that all retailers pass on this charge, why are you just picking on the travel industry to have a dig at?

Nick

Not all travel companies levy a CC charge, Kuoni don't. I book our main annual hol through them each year and pay using AMEX Blue, so for a typical £3K holiday they actually pay me £30!! (1% cash back)

[Nottingham Nick]

I will stick to my original point, and speculate that those companies that do not levy a CC charge get their money by increasing prices across the board.

Nick

[Pete]

The travel industry in general is one of the most competitive and operates on much tighter margins than say, for instance, a high street shoe shop. The CC charge that they must pay when you choose to use your card can sometimes mean the difference between a profit or a loss (in fact, with some of the new deals for travel agents, they get as little as a tenner commission on the sale of flight tickets - even if they are several thousand pounds worth of seat; so the CC charge is often higher than the money they make in those cases).

We all have a choice. We can use an alternative form of payment to avoid the CC charges. As Nick says, the only way around it is for all prices to be hiked in order to cover the costs (and that would then penalise those who don't use a CC). Given the competitive nature of the travel industry, I doubt that'll ever happen.

To be fair, Kuoni aren't a good example as they're in the 'premium' niche, and their margins are likely to be higher and able to absorb CC costs. VH, et al are at the sharp end of the mass market, where every pound counts on the published price.

Pix

quote:Originally posted by Ianflies
I think is an unfair and punitive

I recall when I was getting my own merchant account many years ago, the rep identified travel agents (in general) as being a high risk customer (becuase they take a payment for something that isn't fulfilled for sometimes many months ahead) - and as such they may well be paying a higher rate than 1.5% and already subsiding it slightly anyway.

If you're booking with VH, make sure you have taken advantages of all the discounts available - 10% discount is available on most packages for FVC members (the only time I booked with VH they were offering the 10% discount to flying club members also, although they didn't advertise this - I expect they may still do?).

Also, make the most of the £9,000 expenditure, by using the Flying Club Credit Card - up to another 18,000 miles in your account! (Or another credit card that rewards you).

jules.

I wouldn't want to book a holiday with a company that didn't add a surcharge for payment by CC. That would mean that the CC commissions would be reflected in a higher brochure cost for all. Not very fair at all.
...........although it would also be fairer if obese pax were charged more for their airline tickets and .......oh oh getting into deep water here.
Live with it and thanks for posting your rant.

I agree with Ianflies. An FC member would get £900 yes £900 off a £9000 VH holiday. The CC charge is petty especially for folks paying BIG bucks on a holiday. It left a bad taste in my mouth being hit for it on a my £4k holiday to Antigua in Aug. Kuoni may be seen as "high end" but 9k VH holidays are also "high end" in my book. The mark up on car hire on VH for a start IS astronomical based on what you can get it for booking it indepandently with the SAME car hire firm.


John

quote:Originally posted by Nottingham Nick
Ian

As you say, you are a Bank Manager and you are aware that all retailers pass on this charge, why are you just picking on the travel industry to have a dig at?

Nick

Well thanks guys for the great feedback and it really is interesting to see other peoples take on it. It wasn't intended as a dig at the travel industry 'per se', although it may look like it! Just an opinion in my view that as I have paid £9000 on a holiday, I would assume the profit would be quite high, then I am stuck with another fee. Actually reading all the comments does give me an insider look as to why I am charged and a look at another perspective or two - I guess the beauty of this site - so thanks again.

[Nottingham Nick]

One of the great attractions of this site is the ability of posters to debate without resorting to the insults that seem to plague other internet discussion boards. (In most cases anyway )

Picking up on what JAT74L says, I agree that the 'mark up' on several VH products is very high - this is the reason I have never used them, as I prefer to put together my own packages - but I wouldn't put VH in the Kuoni bracket quite.

People use travel agencies for several reasons, presumably the main one being the convenience to be able to get everything sorted for the minimal amount of effort and worry.

I agree that when you are paying £9K + for a holiday, everything should be absolutely spot on and little gripes like this can needlessly take the edge off the trip.

Ianflies, I hope you have a great trip, I am going out to MIA for a few days just after Christmas, so I hope the Floridian sun shines on us all

Nick

Just a quick word re Kuoni: I have booked through them five times now and consistently find that that I am unable to get the same holiday cheaper elsewhere! I've spent ages in the past wading through flight & hotel sites on the web but can never achieve a costing as low as Kuoni's. So, yes, they may be perceived as being a high quality niche provider but they also tend to provide unbeatable value - not just for specialist trips but also for pretty bog standard ones too Last year for instance we upgraded to Business Class on Emirates (four sectors: LGW-DXB-KUL-DXB-LGW)and all it cost us, through Kuoni was £750 each for the 4 sector upgrade, It would have been much more through anyone else. Have just booked a trip to Dubai in March through Kuoni (Dar Al Masyaf at Madinat Jumeirah) and, again, I could not have got the same holiday cheaper if I'd assembled the itinerary myelf. (I have no connection with Kuoni by the way, I just think they offer amazing value for money!)....and they don't levy CC charges

Hi

Last year when we booked through VH we weren't charged the credit card fee as we paid with a Virgin credit card, I did have to ask though it wasn't automatic.

quote:Originally posted by Nottingham Nick

Ianflies, I hope you have a great trip, I am going out to MIA for a few days just after Christmas, so I hope the Floridian sun shines on us all

Nick

...And the same goes to you too.....may the sun shine on us all; everyone!