Bulk Fares Have Pluses, Minuses

In an effort to drum up traffic for Europe, some transatlantic airlines are providing more bulk-fare seats than in previous peak summer periods. This can be good news to travelers, as fares sold on this basis will probably be lower than charters and surely less than APEX fares.

But before you rush out to buy a bulk-fare seat, there are advantages and disadvantages to these kinds of fares that you should know about.

Airlines sell consolidators and tour operators a relatively large block of seats that the consolidators resell to the public or to retail travel agencies. If agents buy such tickets from the consolidator, they can mark them up. But the final price to the consumer is still likely to be less than the regular price or discount fares.

In addition, you don’t face any advance payment restrictions as you would with APEX fares. You can get a refund on your bulk-fare ticket, but figure on a hefty cancellation charge that can go as high as $200. These tickets can’t be bought on an open basis, and both legs have to be dated.

Changing Return Dates

“You can change return dates in Europe, but you have to pay an extra amount, $50 or more,” said Clint Howard, a Gardena-based travel consultant specializing in Europe.

Some bulk-fare tickets may show no price. Others may indicate full fare--which is not the price you paid--but be marked as refundable only to the issuer, and non-endorsable (and good only on the dates cited and airline involved).

Given these restrictions, trip cancellation insurance may be a wise move.

The cause of the restrictions is that even though the consolidator has bought a block of seats, the airline still controls the number of bulk-fare seats sold per flight.

Major consolidators protect themselves by provisions in their agreements with airlines that give parity to bulk fare and APEX fare seats, said Brian Clewer, president of Ambassador International Travel, a Los Angeles-based consolidator. “The APEX and bulk-fare seats run out for us on the same basis,” Clewer said.

More Work, Less Profit

While any travel agent can sell you a bulk-fare seat, not all agencies handle such tickets. Obtaining such tickets can involve more work and, with lower fares, less revenue. Also, agents don’t get credit from airlines for the sale of these pre-purchased tickets.

“In most cases, the tickets are issued by the carriers themselves, which gives the consumer more protection,” Howard says.

While many airlines make some bulk rates available, they are usually reluctant to be named in ads or other promotional material. That explains why you see ads touting low round-trip fares to Europe on scheduled airlines (some ads say “not charters” as well), without the name of the specific carrier.

Moreover, the carriers are really undercutting their own discount fares, another reason they are not anxious for this sort of exposure.

You can get bulk-fare seats to such European destinations as London, Paris, Frankfurt, Zurich, Amsterdam, Milan, Rome, Athens and Madrid. While there may be more bulk-fare seats than usual this summer, generally more bulk-fare seats are offered during the off-season.

The more competition that exists on a route, the more chances of finding these low-cost, bulk-fare seats.

As for potential savings, here are some examples, based on peak summer periods: A round-trip bulk-fare seat to London costs about $633 (bulk-fare rates can vary from airline to airline for the same destination). The APEX fare is $799, while the charter rate is $649.

You can buy a bulk-fare ticket to Amsterdam for $678 compared to an APEX rate of $968 and a charter fare of $748. The bulk-fare rate to Copenhagen is $672, compared to an APEX rate of $1,085 (no charters available).

“While you would always have a weekend surcharge with APEX fares, some airlines may not impose a higher weekend rate with bulk-fare seats,” Howard says.

Hunting around can pay off.