Airline fuel surcharges between April 2011 and May 2012 rose nearly twice as fast as oil prices, according to Carlson Wagonlit Travel.
Analyzing its own data and figures from the International Civil Aviation Organization and IATA, CWT's Travel Management Institute determined that the price of oil rose 24%, yet surcharges on average jumped 53%.
"Originally applied across all fares as a way for airlines to manage highly volatile oil prices, [surcharges] are now used most often in the corporate market to raise revenues without raising basic fares," CWT wrote in a recent report.
According to the travel management company, fuel surcharges now account for 7-12% of companies' total air spend.
"Many airlines have stopped communicating on the mechanics of fuel surcharges and [also stopped] revising them downward while oil prices have been steadily dropping," CWT added. In the United States, the Department of Transportation in February issued a warning to airlines that they "must accurately reflect the actual costs of the service covered."
The CWT report pointed to another problem for travel managers: GDSs code surcharges differently at points of sale, making it difficult to consolidate the relevant data. Sixteen percent of 114 travel managers surveyed by CWT between November 2011 and May 2012 said they track surcharges.
CWT recommended that buyers make more of an effort to gather and track data, and then use that information to negotiate a waiver or reduction.
"In recent months, some airlines have been willing to negotiate these surcharges, offering a back-end rebate at the end of the year," according to the report.
Source:Business Travel News