Beware the real cost of those ‘cheap’ flights
We live in a golden age of travel savings. Discount carriers now offer cheap airfare to travelers everywhere. But those cheap tickets sometimes come with the high price of extra fees.
“Discount airlines may offer a lower price upfront, but they often squeeze in hidden charges that many don’t realize (they’ll pay) until after the fact,” said Holly Johnson, owner of frugal travel website Club Thrifty. Many traditional full-service airlines also have added fees in recent years.
Fortunately, tapping into some travel wisdom can help you avoid paying fees on the lowest airfare. Read on to see some of the sneaky costs that can ruin a bargain airfare — and get a few tips to save money on travel.
Change fees
The cost of those cheap airline tickets will go up — substantially — if you need to make a change to your tickets. “American Airlines charges may range from $75 to $200 to change your ticket,” said Lee Huffman, who writes about travel and travel hacking on his website Bald Thoughts.
Meanwhile, Delta Air Lines charges $200 for domestic flights and between $200 and $500 for international travel. JetBlue charges anywhere from $75 to $150 based on the tier ticket you purchase. Hawaiian Airlines charges between $30 and $300, plus fare difference, depending on whether you’re flying to a neighboring island, the mainland or an international destination.
To avoid or minimize such fees, it pays to know your airline’s policy. For example, Huffman said you can avoid the American Airlines fee if you hold Executive Platinum elite status.
Other airlines also offer ways to avoid these fees. Alaska Airlines offers free flight changes, so long as they’re requested 60 days out. United Airlines offers FareLock, which lets travelers who pay a service fee hold airfare for up to a week. And most airlines allow for free cancellations within 24 hours of booking time.
You can also fly Southwest Airlines, which does not charge a change fee. Also, consider getting airline ticket insurance. When purchased through an airline, this can protect you from absorbing the cost of a rescheduled flight. However, you still have to pay for the insurance.
Baggage fees
Checked-bag fees start at $25 to $35 and can go higher if your bag is heavier than 50 pounds, Huffman said.
To fly bags for free, you’ll need to qualify for elite status on some airlines; hold a competitive travel rewards credit card or loyalty card that offers the benefit; buy a business-class or first-class ticket; or fly Southwest, which allows customers to travel with two checked bags at no additional fee
As for carry-on bags, most major airlines still allow one per flier for free. However, a number of discount airlines — including Allegiant, Spirit and Frontier — have started to charge for carry-on luggage.
Printed boarding pass fees
Do you prefer to print your boarding pass at the airport instead of at home? You might have to pay for the privilege. For example, Allegiant charges $5 for printing your boarding pass “at select domestic airport locations.” To avoid the fee and cut your travel costs, check in and print your pass at home up to 24 hours before your flight.
Meal and snack costs
Most travelers no longer expect a meal when flying domestic. In addition, a “standard soft drink and bag of pretzels will most likely not be included either,” said Grainne Kelly, who worked in the travel industry.
“Plan ahead and pack yourself plenty of snacks and other food to tide you over until you reach your destination,” she said. She also reminded travelers they can’t bring liquids through security, “so you’ll need to purchase them near your gate or onboard the flight.”
State general obligation bonds offer the safest returns in the municipal bond industry. Statistically, the U.S. is in its eighth year of economic recovery. In times like this, all boats usually rise with the tide. But in 2016 alone, Standard and Poor’s raised only two state ratings (Hawaii & Tennessee), but downgraded eight states (Alaska, Connecticut, Illinois, Kansas, New Jersey, New Mexico,
North Dakota and
West Virginia). That’s a decline of 16 percent of state ratings, when the average downgrade rate for all municipal bonds is approximately 5 percent per year.
In the past, state bond ratings were usually downgraded after the official date assigned to a recession. The lag in downgrades can be attributed to the tax collection calendars of states: the largest variable comes in April, near the end of the fiscal year, when tax returns show the true state of income tax collections and refunds. In a slow economy, states underestimate income taxes, leading to large deficits for that fiscal year. Based on the experience of jurisdictions like Illinois, Hartford, and Puerto Rico, 2017 is shaping up to be challenging year for state and municipal financing.
Downgrades and recessions are inextricably tied. The problem right now is that state ratings are dropping down before an official recession has been declared.
New Jersey has been under continual stress since they lost their
“AAA” rating in 1991. Connecticut’s rating is historically volatile, depending on the ebb and flow of expansion/ recession. California’s rating volatility is connected with its corporate income taxes, and Illinois has followed the same pattern as Connecticut, except that this time its deficits and unfunded pension liabilities have put them at the bottom of the state rating ladder.