Press Release Friday, September 22, 2000

Contact:Mark Silbergeld Janell Duncan David Butler (202) 462-6262 Consumers Union Washinton, DC Office

WASHINGTON, D.C. -- Consumers Union, the publisher of Consumer Reports magazine, has submitted comments to the U.S. Department of Transportation (DOT) in response to the department's request for opinion on federal rules governing airline computer reservation systems.

Mark Silbergeld, co-director of CU's Washington DC office, said that new DOT regulations are necessary due to industry practices that sometimes prevent consumers from finding the best prices for airline tickets.

"The travel marketplace is filled with inaccurate and misleading information about ticket prices," Silbergeld said. "When consumers are quoted prices for tickets, the consumers often presume that these fares represent the best prices among all of the available flights. But that's not always the case. Sometimes, a seller may omit certain fares or certain carriers. When a consumer can't find the cheapest prices the market has to offer, it raises disturbing questions about the sellers' motives and biases.

"The Department of Transportation has ample authority to require that all systems engaged in the search and sale of airline tickets must present unbiased information to ensure that consumers get fair and accurate listings. This requirement should apply to all ticket sellers, regardless of whether they are independent companies or affiliated with a certain airline. Such a requirement is necessary for the sake of competition," he said.

In his comments to transportation officials, Silbergeld cited the October 2000 issue of Consumer Reports Travel Letter (CRTL), another CU publication, which examined the four largest independent travel web sites. CRTL searched for several itineraries at various times in order to find the best flight at the cheapest price. CRTL also had an independent consultant look for the best fares using a computer reservations system (CRS), the booking tool used by most travel agencies and regulated by DOT. CRTL found that certain sites emphasized advertised airlines over other carriers, omitted certain airlines with viable itineraries, or emphasized wildly impractical itineraries.

For more information about the CRTL article on travel web sites, contact Gene Lomoriello at 914-378-2417.

Consumers Union, publisher of Consumer Reports magazine, is an independent, nonprofit testing and information-gathering organization, serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers. Consumers Union is located online at www.consumersunion.org