In Reply to: Garuda fuel surcharge posted by Pchap on Wednesday, 13. April 2005 at 18:52 Bali Time:
OK it seems like I'm having a let attack the travel agent day, but I felt the need to sound this warning.
I it is common for travel agents to take your full amount from the fare as early as possible, but not to issue the tickets until the last date they have too. They don't have to pay the full funds to the airline until they issue the tickets. In the mean time, they put this money on the sort term money market and collect the interest. For instance, if they put the $3000 from your fares into ING direct for a month at 5.4% pa interest they will earn around $13. Do this with enough fares and it's a nice little earner.
Now there is nothing inherently wrong with this BUT...
The problems arise in situations like this. If they do not pay for and issue the tickets until after a price rise or imposition of a fuel levy, they will need to pay it, thereby reducing their earnings. If they do pay, its no big drama, but an unscrupulous agent might try to make you pay, even though you paid your ticket in full, expecting it to be ticketed right away so as to avoid charges.
This happened to me 5 years ago with Harvey World Travel in Melb when booking for Vietnam. Singapore Airlines put the price up and the agent tried to make me pay or change my dates. I refused. Tried to take it to the travel agents association, but found that the HWT franchise in question was not a member so they wouldn't help. Had to threaten to go to consumer affairs to get it fixed, but even then was sworn at and threatened.