The World Travel Agents Associations Alliance (WTAAA) has called on airlines to stop penalising them for their customers practising skiplagging – which is an increasing consumer trend of booking a cheaper flight with a layover at a destination the traveller intends going to, and then intentionally skipping the final leg to secure a lower fare.
According to a recent report by Business Traveller this practice of ‘hidden city ticketing’ involves purchasing a ticket with a layover in a specific city, but instead of continuing to the final destination, the passenger gets off the plane and leaves the airport at the layover city with their carry-on luggage.
The online news site elaborated: “The midpoint destination is the desired terminus for the passenger who finds purchasing a ticket with a layover rather than a direct flight cheaper. Airlines often charge high prices for direct flights from smaller cities, but savvy travellers can find deals with online tools or by exploring alternate routes.”
Websites and social media sites, including TikTok, actively encourage this practice and airlines have unsuccessfully attempted to sue. The practice is not illegal but costs airlines a lot of revenue.
According to Travel News, pre-COVID, German carrier Lufthansa attempted to sue a passenger for skiplagging to the tune of $2 300 – the direct fare avoided by the skiplagger. But the Berlin court dismissed the lawsuit, despite multiple appeals by Lufthansa.
It now seems travel agents are bearing the brunt of the consequences, with WTAAA highlighting that agents are facing penalties for practices driven by price-conscious consumers who book through the travel agency channel.
“Skiplagging is a long-standing issue in the travel industry that we do not support, but travel agents cannot control customer behaviour once travel is under way,” said Otto de Vries, Executive Director of WTAAA. “While airlines have filed unsuccessful legal cases against consumers who skiplag, they continue to issue Agency Debit Memos (ADMs), penalising agents whose clients break fare rules by not taking a flight segment.”
A recent survey by passport-photo.online found that over 64% of American flyers skiplag at least 25% of their flights annually, with the practice increasingly popular among younger generations as a way to find cheaper fares and more convenient routes.
The practice of holding agents responsible a ‘major concern’
“We do the right thing by booking as per the published fares, but the practice of holding the agent financially responsible when the client breaks airline rules remains a major concern,” explained De Vries.
“It's time airlines play a straight game on pricing without huge mark-ups for hub-to-hub tickets versus to final destinations, which would diminish the incentive for skiplagging.”
De Vries added: “The consequences are clearly uneven based on whether the consumer booked direct or via an accredited agent who unintentionally booked a so-called skiplag itinerary on behalf of their customer.
“While airlines struggle to punish direct booking consumers legally, they readily fine agents, sometimes contributing to agency closures from the financial impact. This unequal treatment must be addressed.”
In response to a media query, Iata spokesperson, Albert Tjoeng, said: “Airline pricing strategies are commercial decisions of individual carriers. Iata does not comment on such matters.
“Under Iata Resolution 830a from the Passenger Agency Conference Resolutions Manual applicable to airlines and travel agents participating in Iata settlement systems, airlines can take independent action where travel agents willingly and knowingly contravene the published fare rules of the airlines. Such action includes charging the agent the difference between the fare applied and the fare applicable to the actual service provided or flown.”
Duty to advise clients
WTAAA emphasised that travel agents had a duty to advise clients about the potential risks associated with skiplagging. These risks can include voiding return flights, losing frequent flyer benefits, facing legal action, or having accounts banned by the airline. Ultimately, however, it should not be the travel agents who bear the financial cost of their clients' travel decisions.
WTAAA has called for an open dialogue between the airline industry and travel agent associations to address the increasing issue of skiplagging. “This dialogue should focus on finding solutions that protect consumers' rights to make informed choices while ensuring a fair and sustainable environment in which travel agents can operate,” said WTAAA in a statement.
