Why All Inclusive Fare Advertising is Required in Asia: Case Cebu Pacific

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As more and more airlines have majority of the air fare masked as fuel surcharge (you can read why airlines love fuel surcharges here), advertising of base fares has become meaningless. Brazil has banned fuel surcharges, United States and European Union require all advertised/quoted airfares to include ALL the charges.

cebu-pacific-plane

Cebu Pacific is starting to fly from Manila to Dubai on October 7, 2013, in all economy configured Airbus A330-300 aircraft with 400 seats (almost the absolute maximum). To celebrate the launch, the airline is advertising 888 PHP fares on the route.

cebu-pacific-dubai

The keyword here is advertising. This 888 PHP price is BEFORE 100 PHP admin fee and 4510 PHP fuel surcharge. The admin fee and fuel surcharge both go directly to Cebu Pacific’s coffers and constitute around 84% of the fare before taxes.

cebu-pacific-dubai-breakdown

Then there are the actual taxes of 550 PHP terminal fee, 1620 PHP travel tax and 887 PHP country specific charge. I am not sure if these terminal fee and country specific charge are really taxes or just another way for Cebu to advertise lower fares.

Cebu Pacific Dubai Terms and Conditions
Cebu Pacific Dubai Terms and Conditions

So, once we factor in all the charges, the 888 PHP fare becomes 8555 PHP. The “advertised” fare only constitutes 10.4% of the lowest available fare.

LoyaltyLobby reader had shot the photos of the Cebu’s advertisement and emailed them to me. If you come across a news story or some other travel related matter that could be of interest to readers, you can always alert me about it.

Conclusion

Advertising 888 PHP fare that becomes 8555, is totally ridiculous. But all the airlines in Asia are doing it. This is so misleading advertising that the governments should require airlines to include all carrier imposed taxes/fees on the base fare quote. Preferably, they should require airlines to advertise/quote all inclusive fares.

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