When I found out that my favorite comedian was coming to town, I
couldn't wait to buy tickets. Each seat in my preferred section cost $84, which
was a little high, but I figured it was worth it to see someone who
consistently makes me laugh. But after adding in the service charge, taxes, and
a fee to email the tickets to me, the two $84 tickets came to a total of just
over $200.
Anyone who has recently bought tickets to a music, sporting, or
comedy event has had a similar experience. Hidden fees increase the price of
your seat, but you won't even realize until it's time to enter in your payment
information. At that point, you're already excited about the event and don't
want to back out because of an unexpected cost.
Buying tickets is not the only time you find yourself staring
down a hidden fee. Here's what you need to know about the surprise extra
charges on common purchases, and how you can either plan for them or fight
them.
Events
Buying tickets to events has changed a lot in my lifetime. Back
in high school, I actually had to visit a box office or local retailer to
purchase tickets to an upcoming event. I even camped out to be among the first
in line for a popular band that came to town. When buying them in person was
the only way to get tickets, the face value of the ticket was much closer to
the amount you would pay for it. In general, you'd only pay sales tax on top of
the ticket price.
All of that changed when Ticketmaster became the primary method
for buying tickets. The event sales giant started charging everything from
service fees to delivery fees to processing fees to facility charges. These
additional fees are revealed only after you have chosen your seats at the base
ticket price, and while you're watching a clock tick down the amount of time
before the tickets are released to another hopeful concert-goer.
These fees add 25% to 35% to the price of your ticket, and the
use of the countdown clock and the belated reveal of the fees both work to make
you grumble but ultimately fish out your credit card to pay anyway.
For a short time, Ticketmaster held an absolute monopoly on
tickets, and it still represents more than 80% of the market share of the
ticket-sales industry. However, that doesn't mean you have no choice.
Avoiding the fees
The savvy concert-goer and sports fan has several options
available for reducing ticket fees. To start, you can purchase directly from
the venue to reduce your fees. Even if you buy the tickets online through the
venue's online portal, you can usually get a lower price than you would through
the big ticket brokers. This is what I did to buy my comedy tickets. As unhappy
as I was paying an additional $32 for them, it represented only a 19% markup. Had
I gone through Ticketmaster, the markup was just over 34%.
If you have more time than money, rocking the old school method
of buying tickets in person at the box office can save you even more
money.
Airline tickets
Within the past 10 years, airlines figured out they could
increase profit by reducing the freebies they used to offer. They started by
levying a checked baggage fee, which ranges from $10 to $150 per bag, depending
on which airline you fly and how many bags you're checking.
From there, travelers started seeing seat selection fees when
booking online. While there are always a few "free" seats that are
covered by the cost of the ticket, you'll often find they're sparsely spread
throughout the cabin and often not next to each other. This means that you (and
your traveling companions) will each have to pay a seat selection fee if you'd
like to be seated together.
Additional fees may include charges to watch the onboard
entertainment and for drinks and snacks. All of these fees can inflate the cost
of your flight by as much as 50% or more.
Avoiding the fees
Within the airline industry, fees vary a great deal. That means
it's still possible to shop around to avoid extra expenses on top of your
airline ticket. Some low-cost airlines allow you to bring up to two checked
bags for free, skip seat selection fees, and enjoy complimentary snacks,
drinks, and entertainment onboard.
Even if you don't have many airline choices because you don't
live near a major airport, you can still keep your fees lower by purchasing
your tickets as far in advance as possible. The sooner you buy your tickets,
the more likely it is you'll be able to pick your seats for free.
In addition, making sure you understand exactly what fees your
airline charges can help you to avoid last-minute surprises. Knowing before you
reach the airport that you'll have to pay for a checked bag gives you the
option of packing light with just a carry-on. And you can come to your flight
prepared with snacks and entertainment to avoid paying for them on the plane.
(See also: How
to Save Money on Flights Using Fare Alerts)
Hotels
Booking a hotel room online allows you to easily compare room
rates so you can find the best deal. Unfortunately, the rates you see online
don't necessarily match the amount you pay once it's time to check out. That's
because of charges like resort or amenity fees, parking fees, online booking
fees, and Wi-Fi.
These fees vary and can be difficult to determine ahead of time.
For instance, the resort fee is a daily additional charge levied for your use
of the hotel's amenities, from gym and pool access, to using the hotel's
private beach or enjoying the breakfast spread. Even if you have no plans to
use any of the amenities covered by the resort fee, you're still on the hook
for the fee. Most hotels charge a flat daily rate for their resort fee, but
some charge a percentage of your room rate or a per person rate per day.
Avoiding the fees
Parking fees and Wi-Fi charges tend to be the easiest fees to
determine ahead of time. Calling around and asking what these fees will be can
help you decide where to stay. You may also be able to ask for discounts on
these fees based on membership to groups like AAA or AARP or a hotel loyalty
program.
Many countries prohibit charging undisclosed fees like resort fees
and online booking fees, but the United States has no specific prohibition —
although deceptive pricing is against the law. This means you can find the
information about resort and other fees by either looking on your preferred
hotel's website or by calling and asking. However, the fees are not necessarily
going to be easy to find or calculate ahead of time.
There are several options for opting out of resort fees. The
first is to only book rooms at hotels that do not charge them. You can check if
a hotel charges resort fees at ResortFeeChecker.com.
In addition, booking a room using travel
rewards points often means that your resort fee and your
booking fee are waived. Hotel loyalty programs can also potentially earn you
fee-free stays. (See also: How
Travel Rewards Cards Can Help You Score Luxury Travel Perks)
Finally, opting out of hotel stays altogether can be another
method of avoiding fees. Finding a place to stay through a peer-to-peer
homeshare like AirBnB or VRBO can offer you cheaper per-night costs that have
no fees tacked on.
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