As the holiday season comes, more and more airlines offer “PISO” fares with the promise of an affordable airline ticket; but, does this promotion actually mean you’ll only get to pay 1-Peso?
Ah, the glorious discounted offers of “Piso” fares! Everyone loves it! You all love it! But, for seasoned travelers, many know that despite the name, it doesn’t literally mean that the plane ticket is only 1-Peso a pax, right? Well, its name is only for pure marketing tactics but it is still a guarantee that you’ll get lower prices as compared to its original fare rates; usually more than 50% off!
So, why does the Civil Aviation Authority of the Philippines (CAAP) or Civil Aeronautics Board and other trade authorities allow this sort of marketing scheme? Turns out, most airlines actually do offer a type of “PISO” fare, but, not the whole ticket price, just the base fare! That means that as a passenger of a flight, you’ll still be responsible for other taxes and fees associated with your ride; and I learned that from being a travel consultant for 3 years!
WHAT ARE THE TAXES AND FEES?
Here’s a list of common taxes and fees you might encounter when booking a flight to and from the Philippines:
Terminal Fee
Based on its name, a terminal fee is what you’ll have to pay whether you arrive or depart from a certain airport. This means that it can vary depending on the airport. You ask what it’s for? Well, it’s to aid in maintaining the terminal facilities and its services, of course. Considering that last year, NAIA (Ninoy Aquino International Airport) reported a number of more than 45 million passengers who stepped on their terminals for flights, it’s no wonder that airport terminals are high maintenance!
For domestic terminals, the fee can range between Php 50.00 to Php 300.00 while for international ones, Php 650.00 to Php 850.00! Now, add a One-Peso coin to that, then you’ve got a minimum plane ticket of Php 651.00 if you’re going abroad while Php 51.00 if you’re just traveling within the country.
International Passenger Service Charge (IPSC)
A terminal fee may not be much, but how about when you add another type of fee for traveling abroad, simply because you are departing from an international airport? Sounds sketchy? Well, it’s not; because the International Passenger Service Charge or the IPSC is that specific tax! It is also indicated on your plane ticket’s fare breakdown as the “LI” tax and can range between Php 550.00 to Php 1,000.00 and above, depending on the airline.
Fuel Surcharge
We all know that fuel and gas prices can go high and low without any notice, right? And that’s one of the reasons why airlines impose a surcharge – to make sure that fluctuations in fuel prices are covered accordingly. Aside from that, there may also be other fees that could take up hours to indicate on a plane ticket, so they’ll just wrap it up in one neat bow and call it in one name.
Travel Tax
For international travelers, this tax is levied on Filipinos and permanent residents departing from the Philippines.
Aviation Security Fee
Airports are considered one of the safest places in a country, simply because of the high alert security that each terminal and area has. So, to maintain the topnotch security measures, some airports require an Aviation Security Fee to be paid to cover security-related costs.
VAT (Value Added Tax)
VAT is everywhere and at anything in the Philippines, so at this point, it’s not even a surprise that it also exists in airline tickets.
Booking Fee
The first time I booked a flight, I was shocked when I saw the total price go from Php 600.00 to Php 850.00 with just one click; turns out, the app that I used for the online booking mandates a Php 250.00 add-on charge for the booking fee! Depending on the airline and booking method, there might be an additional fee for processing your reservation so check with your options first, prior to hitting that “Book Now!” button.
Aside from the list above, there are also some fees that you can opt out of, but should know about, such as an insurance fee, baggage fee, and a seat selection fee. This is why you should always check with the airline for a detailed breakdown of fees and taxes, as these can vary by airline, destination, and type of fare.
And if you’ve got anything else to add, Sugboanon, feel free to state your thoughts in the comments below! It’s wise to know your airfare, but even wiser to share it with your fellas.
