Credit Card Bookings - Surcharges

It's interesting that all the Operators of steam tours apart from UK Railtours make a surcharge for credit card bookings. UKR make a point of saying in their brochure that they don't understand why others impose such a charge as credit card bookins bring extra business. Can anyone explain why UKR are the only ones that don't charge ? If they can afford not to do it why can't their competitors ?

 

Maybe margins are so thin? In some cases the volume of transactions dictates the rate that they pay the card company. That said the charges levied often exceed those charged by the bank so maybe a bit of profiteering - think Ryanair. In any case, it is always a wise precaution to pay by credit card rather than cash, cheque or debit card as the credit card transaction is coverd under the Consumer Credit Act. Should something go horribly wrong then the card company will be liable for a refund - think Kingfisher! It's like insurance.

 

Short answer is that for the majority it is extra income. Most surcharges are higher than the commission charged by the card companies and this surcharge is not subject to VAT thus it is useful extra income. It also is not counted as tour income so if the tour is run on a shared profit basis with a locomotive owner they do not have to share this income with the loco. owner. The same applies to booking fees at theatres, extra income, not VAT liability and does not have to be shared with the artist.

Looks like UKR are not as greedy as others may appear (No doubt we'll now have the usual suspect representing other tour operators complaining and wringing their hands on here now).

 

Interesting, and what I expected was the case. Disappointing they should pick on credit card bookings then as a means of generating extra income when this method offers a degree of consumer protection that wouldn't be available otherwise.

As an aside, UKR also claim they will never cancel a tour due to insufficient bookings so when you pay your money you know you're going to get a tour in return unless the route / traction becomes unavailable for some reason. Some of the other Promoters out there seem to cancel tours quite regularly due to lack of bookings, and presumably go on to transfer a proportion of those who have booked onto alternative tours and holding onto monies already paid, on which they may have already earned interest, or used to help pay their creditors. One would hope this isn't a planned business manoeuvre in some cases to support a more steady cash flow.

 

UKR seem to have a very ethical business model and one that others in the industry would do well to copy. I am sure that they have this underwritten by an insurance policy which is what any wise, customer focused operator would do.

 

Agreed. I don't use them often as they don't run many steam tours and mostly run from London and the South East. They are obviously very successful with most tours running fully booked, something they enjoy as a result of the customer focused business model to which you refer. As you say, their competitors in the largely steam market would do well to copy it.

 

I paid a £ 25.00 deposit with a Visa Debit Card for a Past Time trip and got my money back when they went bust.

 

I imagine it's all down to the cost structure for each Operator etc.

I don't give a damn what they each do, as long as I know when booking. So can make my own decision about booking and how I pay.

I'm old enough and ugly enough now to do that! LOL!

Sorry. Old enough, fat enough and ugly enough.

 

We at Compass have never charged a supplement, Am sure some others dont either?

 

Thats a great reply, one thing i have found recently in business is that the company you are payings bank, may dictate that a surcharge is in place.
Its down to the company you are dealing with to dictate back to the bank no surcharge, if they cannot make up your own minds.

 

Using these machines for payment regularly I know what the banks commission charges are. Leaving aside AMEX on other cards, for the average booking the commission would normally be about 50pence.

No tour operator is going to be in the 'small business rate',where charges may be higher.

 

Ok, that suggests there may be more than a degree of profiteering behind these surcharges then. I really can't see any justification for it frankly. If TESCO or our preferred supermarket of choice started adding a surcharge to the cost of our weekly shop when paying by credit card, most of us would rightly be up in arms so why do Railtour Promoters expect to get away with it ?

 

Because we let them!

 

At least that would be honest. In effect the price would be the same anyway.

 

Isn't the point though that by making it a credit card surcharge they might be loosing business by putting off those customers who would prefer to pay by that method but resent the unfair tax ?

 

Fair enough, always good to consider alternative viewpoints. Be nice if those making the charges could come on and explain the justification though, especially as UK Railtours have explained in their latest brochure why they're not in favour.

 

what about the carbon offset charges... anyone actually seen any trees bought with this little railtour extra ?