Proposed Aviation Tax Increases Harmful to Travel Industry, Consumers, Says ASTA

ASTA is warning that increasing taxes on air travel "catastrophic for an industry already struggling to recover from the recent recession which saw millions of Americans curtail their travel." © 2011 Karen Rubin/news-photos-features.com

The American Society of Travel Agents is calling upon the federal lawmakers to look elsewhere for money to close the budget deficit, saying that increasing aviation taxes would only serve to hurt the U.S. transportation industry and the consumers who rely on it.

“To place additional taxes on airline travel might assist with closing the budget gap in the short run, but such actions will no doubt have unintended, long-term negative consequences as consumers already faced with tight budgets cut back on air travel or eliminate it altogether,” said Tony Gonchar, ASTA CEO. “The results could be catastrophic for an industry already struggling to recover from the recent recession which saw millions of Americans curtail their travel.

“It won’t be just the airlines that feel the resulting pain, but travel agencies who sell air, hotels and resorts, cruise lines and car rental companies to name a few. The resulting loss of jobs would only serve to compound our current economic troubles, rather than alleviate them,” Gonchar added.

According to a release recently issued by the Air Transport Association of America, the industry’s non-income tax burden has grown from $3.7 billion in 1993 to approximately $17 billion today. In 2010, U.S. airlines and their passengers contributed $3.4 billion in taxes and fees to the Department of Homeland Security, including $2 billion in taxes and fees to the Transportation Security Administration – a 50 percent increase from the amount collected in 2002. Taxes on ARC-settled air fares sold by travel agents increased from 9.7 percent in 2001 to 16.63 percent in 2010.

The mission of the American Society of Travel Agents (ASTA) is to facilitate the business of selling travel through effective representation, shared knowledge and the enhancement of professionalism. ASTA seeks a retail travel marketplace that is profitable and growing and a rewarding field in which to work, invest and do business.

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Continental Airlines’ New FareLock Lets Customers Hold Reservations for Up to 7 Days

Continental Airlines has introduced FareLock, an option that offers customers the opportunity to hold reservations and lock-in ticket prices for 72 hours or seven days with no commitment to purchase a ticket. The new feature, offered for a fee on certain domestic and international itineraries, gives customers additional flexibility to plan their travels and avoid the risk of price increases or sold-out flights.

Customers may choose FareLock when booking reservations at continental.com and opt for a 72-hour or a seven-day hold. They may return to complete the transaction at any time between purchasing the lock and its expiration, or they may choose an auto-ticketing feature which tickets at the end of the lock period. FareLock fees, beginning at $5 for a 72-hour hold and $9 for a seven-day hold, will vary based on a number of factors such as the itinerary, number of days to departure, number of passengers on the reservation, and the length of the hold.

“FareLock is an innovative option for customers who need extra time to plan their travel before purchasing a ticket,” said Chris Amenechi, managing director of merchandising. “This new option is another way that Continental is giving our customers more choices and more control over their travel experience.”

The carrier will continue to offer its 24-hour flexible booking policy that allows reservation changes and cancellations with full refund without a fee within 24 hours of booking online or through the call centers. For customers choosing FareLock, the 24-hour flexible booking policy remains in effect upon ticketing, although the FareLock fee is non-refundable.

More information about FareLock is available at continental.com.

About Continental Airlines

Continental Airlines is a wholly owned subsidiary of United Continental Holdings, Inc. (NYSE: UAL). Continental, together with Continental Express and Continental Connection, has more than 2,400 daily departures throughout the Americas, Europe and Asia, serving 142 domestic and 131 international destinations. Continental is a member of Star Alliance, which overall offers 21,000 daily flights to 1,160 airports in 181 countries. Continental has hubs serving Cleveland, Guam, Houston and New York/Newark Liberty, and together with its regional partners, carries approximately 63 million passengers per year.

United Continental Holdings, Inc. became the holding company for both United and Continental upon close of the merger transaction. The two airlines will operate separately as they begin to integrate key customer services, marketing activities and airport processes. For more company information, go to continental.com and follow on Twitter and Facebook.

SOURCE United Continental Holdings, Inc.