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"A little bit steep": Jetstar passenger hit with "wild" excess baggage fee

A Jetstar passenger has been slapped with a "wild" excess baggage fee after her luggage was less than just one kilogram overweight. Monique McCreanor was flying from Melbourne to Sydney after competing in a fitness competition when she was hit with the unexpected fees. Travelling with only carry-on luggage, Ms. McCreanor said she made a mad dash to the airport to catch her flight, only to be stopped at the gate due to the weight of her bag. Because of the prizes she won at the competition, her bag was just 900g over the 7kg limit, and she was issued a $75 fine. Ms. McCreanor took to TikTok to share a warning with other travellers to triple check the weight of your bag, as even being over the limit by mere grams will set you back. “This isn’t a complaint, this is merely just warning you guys,” she said in the clip. “If you do fly with Jetstar on a domestic flight, and your bag is even 100g overweight, you’re going to get charged $75 at the gate for that excess luggage." “Now, this kind of sucks, because I’m like damn, I could have had 15kg in this bag to really make it worthwhile." “I got hit with $75, so just make sure are booking the extra checked baggage, it is better to be safe than sorry, because $75 is a little bit steep for just 900g overweight.” While her video quickly garnered thousands of views, many were left divided in the comments about her complaints. One person sided with the airline, saying, “No sorry, it clearly gives a weight allowance. You went over, you pay.” “Seriously it doesn’t matter who you are with, you will have to pay any way, they are the rules,” another added. Others were quick to empathise, sharing their own experience of encountering excess baggage fees. “They did this to me on my honeymoon... I was p****d,” one person said. Image credits: TikTok

Travel Trouble

Restaurant sparks outrage for "ridiculous" fee

As inflation rates continue to rise it is not surprising that restaurants are charging extra fees, but one disgruntled customer was particularly shocked to see this "ridiculous" fee on their bill. The customer, who dined at restaurant and cocktail bar in Georgia, USA shamed the restaurant for charging their customers a $20 fee for “live band entertainment”. They shared their complaints on Reddit with a copy of their receipt and an unexpected fee at the bottom which read: “Two Live Band Entertainment Fee — $20”. Most people in the comments were equally annoyed and called the fee "ridiculous". “This is one of those leave money on the table, hand the waiter a tip and leave, sorry but if I didn’t order it, I’m not paying for it,” one wrote. “Great way to not have repeat customers,” said another. “This will backfire for them, just be honest and upfront," a third added. Other commenters were less sympathetic and did not understand why the customer was complaining when it looked like they could afford it. “When you’re paying seven dollars for a bottle of water, you really don’t get to complain about ‘unexpected costs.’ You knew what you signed up for," one commenter wrote. “Imagine a live band getting paid, huh,” another added. “They’re buying $7 bottles of water, they can probably afford it,” added a third. Image: Getty/ Reddit

Money & Banking

Big W customer gobsmacked over $4000 shipping fee

A Big W customer was only trying to buy an outdoor play set for her kids but got the shock of her life when she saw the "ridiculous" shipping fee that was over three times the cost of the play set. The Singleton mum had added the $1,200 item to her cart while shopping online and was about to check out when she was greeted with a $4,466 shipping fee. "How in God's name can they charge $4,466 for delivery! Big W are slowly losing my vote!" the outraged mum wrote on Facebook, even swearing off the department store for the apparent money grab. According to the Big W website, the play set is sent via Plum Play, a "trusted partner", and not by Big W stores, and because the woman lives in a rural area, she initially believed that was the reason for the extortionate shipping costs. A few other shoppers criticised the high fee. "That is fricken ridiculous!!!! No one would pay that," one said. "Jesus, are you ordering a few pallets of bricks? No way normal merchandise would cost that much to send," another wrote. A few others questioned the weight of the item and where she lived, while others tried to buy the same item and got even higher shipping fees. "It jumped a few grand for a couple of ks for me," one wrote, with the cost of standard delivery for the play set at $7,858. Some reported fees of up to $50,000, but most were $7,000 to $10,000. The department store has addressed the issue and told Yahoo News Australia that an "error on the website" was to blame. They have since corrected the delivery charges which should have been about $100 for the woman's location. "We were made aware of a delivery calculation error on our website which has since been resolved. We apologise for any inconvenience this has caused," a spokesperson told the publication. Image: Getty

Money & Banking

"Other cities will follow": Big trouble ahead for SUV owners

Paris residents have voted to charge SUVs triple the cost of parking compared to standard sized cars in a bid to tackle air pollution and improve safety. 54.6 per cent of residents voted to pass the plan, with the new parking tariffs expected to start in September. The price increase will apply to on-street parking for vehicles with combustion or hybrid engines weighing more than 1.6 tonnes and electric vehicles weighing over two tonnes. The change means that the vehicles will pay €18 (A$29.69) an hour for parking in the centre of Paris, up from €6 (A$9.90), and €12 (A$19.79) an hour in the rest of the city, up from €4 (A$6.60). "Parisians have made a clear choice … other cities will follow,” Paris mayor Anne Hidalgo said. Experts are onboard with the move and believe the Australia should do the same thing. Urban access consultant and author of the book Rethinking Parking David Mepham said that the move could help improve safety as: “SUVs are actually some of the most unsafe vehicles on the road for pedestrians with a fatality rate that is significantly higher than other vehicles.” “The injury and fatality rate should be a concern in highly pedestrianised areas such as city centres.” In 2022 alone, SUV and light commercial vehicles made up 76.8 per cent of car sales, coming in eighth on the top 10 vehicle sales according to the Federal Chamber of Automotive Industries. With spaces in the cities limited, Mepham added: “If you’ve got a larger car you should expect to pay more for that, you should pay for what you use.” Standards Australia has recently proposed to increase the size of off-street parking spaces by 20 centimetres in Australia, from 5.4 metres to 5.6 metres, which would make it easier for larger vehicles to park, but would limit car spaces. Executive director of the Australia Institute, Richard Dennis also said that SUV owners need to face the consequences of owning a larger vehicle. “If we want to drive much bigger cars, are we going to widen all of our city streets, are we going to have less car parking spaces?” he said. “Because if we want to drive these cars we need to own the consequences.” Marion Terrill, an independent transport expert, also agreed that higher parking fees for large vehicles are “absolutely reasonable.” “If you want more of it you can pay more, it’s the same principle as paying for parking at all," she said. Image: Getty

Travel Trouble

Lisa Wilkinson's fears over losing her home

Lisa Wilkinson's fears over losing her multi-million dollar mansion to cover her legal fees have been detailed in a series of court documents. The former host of The Project entered into a bitter legal battle after being sued for defamation by Bruce Lehrmann, and decided to hire top defamation lawyer Sue Chrysanthou SC and her own legal team to fight the charges. In a series of emotional emails and documents tendered by the Federal Court, Wilkinson was allegedly "almost hysterical" and "sobbing" over the notion of losing her home in Cremorne to pay the hefty legal fees. In a briefing note prepared for Ten’s legal team, Network Ten CEO Beverley McGarvey detailed a “challenging” call she had with the network star on June 7th 2023. McGarvey had called to ask how Ms Wilkinson was going in the wake of Channel 7’s Spotlight program and the leaking of audio provided to police and lawyers but never tendered in court. “Lisa was very upset and emotional and it was a very challenging call,” MsMcGarvey wrote. “She was almost immediately upset and started talking about legal fees and how she would have to sell her house." “I would say her tone was almost hysterical.” McGarvey then did her best to ease Wilkinson's concerns, reminding her of her secure financial position. “She is being paid by us on full salary, and lives in a lavish multimillion dollar home with a pool and a tennis court and harbour views so I hope this is not a real risk,” she said. “She asked if we would pay for her fees and this came up over and over again in the conversation. I told her to talk with Nick, her manager." “But she had chosen her own legal team against our advice and chosen a team we objected to. “She said if I actually cared about her, I would make sure we pay their legal fees.” The documents were released by the Federal Court on Friday after Ms Wilkinson won her legal battle to force Network Ten to pay for her legal fees that are estimated to amount to up to $2 million. The exact amount Ten will pay has not yet been determined. Image credits: Getty Images

Legal

AusPost customer faces extra charge for using cash

As conversations continue about moving to a cashless society, an Australia Post customer was outraged after being slapped with a charge for using cash. Brisbane resident Gerrie Hoogland shared her outrage after hearing about the supposed cash charge through a friend, who claims they were charged $2.20 for wanting to use cash to pay a bill. Hoogland recounted the story on X, formerly known as Twitter, to share the story, while asking if anyone else had encountered anything similar. She wrote, “A friend of my husband’s went to pay a bill at the Post Office last week. He gave them $82.00 in cash and they said they would have to charge him $2.20 for using cash.” “He refused to pay it after telling them cash is legal tender, and then he left without paying the bill at all. Is anyone else hearing more of this?” A number of Aussies took to the comments to call out Australia Post for being “shady”, with some calling the fee a “scam” and a “disgrace”. However the outrage towards Australia Post may be misplaced. <a href="https://au.finance.yahoo.com/news/australia-post-customer-charged-220-for-using-cash---but-is-the-outrage-warranted-025519571.html">Yahoo Finance</a> has contacted the national postal service and understands the fee is set by individual billers, rather than Australia Post themselves. The fee relates to bills paid in person at an Australia Post outlet via Post Billpay and can apply to both cash and card transactions, and whether or not the fee is passed onto the customer will depend on the individual biller. In recent years, a number of billers charge an additional payment fee for bills paid in person, with some notable examples include telcos Telstra, Optus and Vodafone. Image credits: Shutterstock

Money & Banking

"No empathy": Grandmother kicked off flight over unpaid fee

An outraged father has unleashed over Jetstar's decision to remove his mother-in-law and children from a flight over an unpaid fee. Father of three Jay Tee took to social media to slam the airline over their treatment of his family on their flight from the Gold Coast to Melbourne. Tee's kids were being accompanied on the flight by their grandmother, who was informed she needed to pay a $35 fee to check in a bag. The woman forgot to pay the fee before boarding, on what was her second time ever on a plane. Tee was then contacted by the airline after his family had boarded and was told they would not be allowed to travel if the charge wasn’t paid for within 10 minutes. “They informed me I had 10 minutes to pay $35 or else they would be removed from the flight extra fees would accur (sic) for holding up the flight,” he said. “I hung up transferred funds and rang back within four minutes. Jetstar did not take payment and had removed my mother-in-law from the flight altogether leaving her and 3 kids stranded at Gold Coast airport no water no food.” The father slammed the airline for “disgusting service” that was “the worst I have ever been treated” by a company. “My anger is not with the payment for luggage, it is how my mother-in-law and three kids under 10 were treated.” The airline confirmed the family were removed from the flight, with a spokesperson saying the airline was trying to contact Mr Tee for more information. “We’re really sorry to hear about the customers’ experience and are reaching out to get a better understanding about what happened,” the spokesperson said. The airline went on to say they had no record of any payment being made, while also clarifying they asked the elderly woman to move to the service desk multiple times to pay the fee, but she didn't. Mr Tee says he was then forced to pay another $600 to book the group on the next flight to Melbourne with discount airline Bonza. The situation stirred up debate on social media, with some blaming the woman for the mishap. “I don’t understand how this is anybody but the mother in laws fault, She would have checked bags in then should have walked over and paid for the excess, not boarded the plane,” one person wrote. But others defended her, and the fact the charge was paid by Mr Tee. “Would have thought Jetstar could have helped in some way, but that sums up Jetstar’s customer service for you. No empathy what so ever.” Image credits: Facebook / Getty Images

Travel Trouble

Obese woman sparks debate for not giving up extra seat for toddler

An obese woman has sparked debate online after refusing to give up the second seat she paid for to a fussy toddler. The 34-year-old booked the two seats for her cross-country flight to visit her family for Christmas because she was previously unable to comfortably fit in one seat. All was well until the young woman next to her demanded that she "squeeze into one seat" so her son could sit on the other. "I am obese," she admitted on the Reddit thread. "I'm actively working toward losing weight and I've made progress - but I booked an extra seat because I'm fat." She added that she insisted on keeping her seat because she paid for it, but the mum "made a big fuss over it, and she told the flight attendant I was stealing the seat from her son." "Then I showed her my boarding passes, proving that I paid for the extra seat. The flight attendant asked me if I could try to squeeze in, but I said no, that I wanted the extra seat I paid for." The woman claimed that the toddler was only 18 months old, so he didn't need his own seat and could've sat on his mum's lap for the duration of the flight. "I got dirty looks and passive-aggressive remarks from her for the entire flight and I do feel a little bad because the boy looked hard to control - but am I in the wrong?" she asked other social media users. Many shared their overwhelming support for the woman and slammed the mum and flight attendant for their "horrific" behaviour. "The mum is an a**hole for not buying a seat for her son and assuming someone else would give up a seat they paid for. Odds are she was hoping there'd be extra seats on the flight so she didn't have to pay and used the lap thing as a loophole," one commented. "What's even the point of the extra seat if the flight attendants are going to let entitled people bully others into giving it up?" another added. "People buy entire seats for high-end musical equipment. Not even people. Their lack of planning does not constitute an emergency on your part," a third wrote. However, there were a few others that said the woman was in the wrong for causing an inconvenience. "If you are so fat that you have to have more than one seat on an airplane then you are selfish," one said. "Flights overbook all the time especially during the holidays - how can you justify having two seats to yourself?" "How much room does a kid take up, seriously? Yeah the mum should've bought a seat but that doesn't mean you have to be selfish and cause two people discomfort," another commented. Image: Getty

Travel Trouble

Parents slapped with hefty fee over badly behaved children

Two parents have been slapped with a hefty fine tacked onto their restaurant bill after their children caused a ruckus during dinner. Kyle and Lyndsey Landmann were dining at a restaurant in Georgia, USA, when they were given a $50 fine for their allegedly badly behaved kids. Two weeks after the incident, Kyle took to Google to leave a negative review for the eatery to say he was “disappointed by the experience”. “The owner came out and told me he was adding $50 to my bill because of my children’s behaviour,” he wrote. “My kids watched a tablet until the food arrived, ate their food and my wife took them outside while I waited and paid the bill.” Lyndsey went on to tell Today that her kids were well behaved, although they were joined by other families, with 11 children in total at the table. “The kids were sitting at one end of the table and they were being so good,” Landmann said. “'I even commented halfway through the meal, ‘I can’t believe how well-behaved they are’.” After dinner, restaurant owner Tim Richter approached the table and told the party about the additional charge on the menu, which reads, “Adult surcharge: For adults unable to parent.” “Be Respectful to staff, property, and self. No Respect, No Service.” Landmann said she was expecting a compliment for the well behaved kids, but Richter said there would be $50 added to each bill at their table. When Landmann then asked for an explanation, she claimed Richter told her they were being “too loud”. He was angry that the kids were “running around outside” by the water after dinner, even though they were chaperoned by adults, she clarified. “I was like, ‘They were quiet the whole time’. He got in our faces and told us that we belonged at Burger King and not at his restaurant. We asked to speak to the owner and he said he was the owner,” Landmann explained. “I looked around the restaurant and everybody was frozen watching this show he was putting on. He was yelling.” The 61-year-old restaurant owner said that he implemented the rule during the pandemic, but never actually charged the couple, saying, “We want parents to be parents.” However, several other Google reviews blasted the quality of the service and the owner's attitude, including one that warns diners with children to steer clear. Image credits: Facebook

Money & Banking

An entry fee may not be enough to save Venice from 20 million tourists

<a href="https://theconversation.com/profiles/sameer-hosany-292658">Sameer Hosany</a>, <a href="https://theconversation.com/institutions/royal-holloway-university-of-london-795">Royal Holloway University of London</a> Venice’s history, art and architecture attract an estimated <a href="https://www.responsibletravel.com/copy/overtourism-in-venice">20 million</a> visitors every year. The city, a <a href="https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=ac36ced945412121372dc892cc31498fb268247c">Unesco World Heritage site</a>, is often crammed with tourists in search of special <a href="https://onlinelibrary.wiley.com/doi/full/10.1002/mar.21665">memories</a>. But for the people who actually live there, this level of tourism has become unsustainable. So from 2024, day-trippers will be charged a €5 (£4.31) fee as part of an <a href="https://www.nytimes.com/2023/09/12/world/europe/venice-tourist-fee-italy.html#:%7E:text=The%20City%20Council%20passed%20an,popular%20but%20equally%20fragile%20place.&text=Starting%20next%20spring%2C%20day%2Dtrippers,5%20euros%20for%20the%20privilege.">attempt</a> to better manage the flow of visitors. The city’s mayor has <a href="https://travelweekly.co.uk/news/tourism/controversial-e5-venice-tourist-tax-finally-approved">described the charge</a> – which will be implemented on 30 particularly busy days in the spring and summer – as an attempt to “protect the city from mass tourism”. It comes after cruise ships were banned from entering the fragile Venice lagoon in 2021. Both policies are designed to respond to the particular problem facing Venice, which is that <a href="https://www.theguardian.com/world/2022/jul/02/venice-day-trippers-will-have-to-make-reservations-and-pay-fee">around 80%</a> of its tourists come just for the day. Research has shown that such a high proportion of day-trippers – who tend to spend little – <a href="https://www.sciencedirect.com/science/article/pii/0160738395000658">pushes</a> a tourist destination <a href="https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1541-0064.1980.tb00970.x">towards decline</a>. So from next year, all travellers to Venice will have to register their visit in advance and obtain a QR code online. Day trippers will then have to pay the fee; visitors staying overnight will not. Other exemptions include children under 14, as well as people who travel to the city for work and study, or to visit family members. To enforce the policy, the municipal police and authorised inspectors will carry out random checks. Anyone without the proper QR code will face a fine of up to €300 (£261). But some have expressed doubts about whether the €5 fee – the price of a coffee or an ice cream – will be enough to dissuade tourists from travelling to this iconic ancient city. One city politician <a href="https://www.nytimes.com/2023/09/12/world/europe/venice-tourist-fee-italy.html">commented</a> that the charge means Venice has become “a theme park, a Disneyland,” where “you get in by paying an entrance fee.” Certainly the charge is a lot less than Bhutan’s (recently reduced) “sustainable development fee” of <a href="https://globetrender.com/2023/09/17/bhutan-woos-more-tourists-reduced-entry-tax/">US$100 (£82) per night</a>, which applies to all tourists, and was introduced to encourage “high value, low impact” tourism. Research also indicates that strategies aiming at persuading tourists to come at less crowded times <a href="https://www.sciencedirect.com/book/9780080436746/seasonality-in-tourism">do not reduce numbers</a> at peak periods, but actually end up increasing overall demand. <h2>‘Veniceland’</h2> But Venice has to try something. For <a href="https://www.mdpi.com/2071-1050/11/24/6937">researchers</a>, Venice is the embodiment of <a href="https://www.cabidigitallibrary.org/doi/book/10.1079/9781786399823.0000">overtourism</a>, and residents clearly suffer from the consequences – living with the congestion, environmental damage and affects on their lifestyle and culture that 20 million visitors can cause. This can then lead to a negative response, known as “<a href="https://www.researchgate.net/publication/348605007_Overtourism_and_Tourismphobia_A_Journey_Through_Five_Decades_of_Tourism_Development_Planning_and_Local_Concerns">tourismphobia</a>”.Another term, “<a href="https://dokufest.com/en/festival/2013/cities-beyond-borders/das-venedig-prinzip-the-venice-syndrome#:%7E:text=The%20film%20shows%20what%20remains,municipal%20council%20with%20scorn%3B%20a">Venice Syndrome</a>” has been used to describe the <a href="https://www.sciencedirect.com/science/article/pii/S0264275123001816#:%7E:text=It%20explains%20the%20data%2Dgathering,between%20urban%20form%20conditions%20and">decline of the city’s</a> permanent population, as citizens feel forced to leave. Venice’s population is around 50,000 and has been consistently falling, from a peak of <a href="https://www.blueguides.com/venice-in-peril/">175,000</a>. If the population falls below 40,000, there is concern that Venice will cease to be a <a href="https://www.responsibletravel.com/copy/overtourism-in-venice">viable living city</a>. Those who remain have often expressed their discontent. Well publicised protests have included the “<a href="https://www.reuters.com/article/us-venice-funeral-idUKTRE5AD1DQ20091114">Funeral of Venice</a>” in 2009, a mock funeral to mourn the sharp drop in population, and “<a href="https://scholarworks.gsu.edu/cgi/viewcontent.cgi?article=1065&context=anthro_theses">Welcome to Veniceland</a>” in 2010, which claimed that Venice was becoming more of a theme park. And while “tourist taxes” <a href="https://www.tandfonline.com/doi/full/10.1080/14616688.2019.1669070">remain popular strategies</a> to address overtourism, their effectiveness remains debatable. Instead, research suggests that a <a href="https://www.tandfonline.com/doi/abs/10.1080/14616688.2019.1669070">combination</a> of specific economic measures (like fees and variable pricing) and non-economic policies (such as educating visitors) is the best option. That combination needs to be specially designed for each destination. There can be no one-size-fits-all solution. A <a href="https://www.e-unwto.org/doi/pdf/10.18111/9789284420070">report</a> by the World Tourism Organisation on overtourism identifies 11 different strategies and 68 measures to manage visitors’ growth in urban destinations. Barcelona, often seen as a city which has done well in handling mass tourism, has successfully used a <a href="https://www.econstor.eu/bitstream/10419/216242/1/CESifo-Forum-2019-03-p20-24.pdf">well targeted approach</a>. This has included harnessing new technology to develop a data driven management system to control visitor flows and overcrowding. It also deliberately engaged with the public when deciding on policies, and came up with specific strategies like limiting the number of new souvenir shops. But it did not resort to charging an entrance fee. Venice will be the first city in the world to do so – and other locations struggling with mass tourism will be keeping a close eye on whether such a bold move turns out to be a success.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/213703/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/sameer-hosany-292658">Sameer Hosany</a>, Professor of Marketing, <a href="https://theconversation.com/institutions/royal-holloway-university-of-london-795">Royal Holloway University of London</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/an-entry-fee-may-not-be-enough-to-save-venice-from-20-million-tourists-213703">original article</a>.

International Travel

Junk fees and drip pricing: the underhanded tactics we hate yet still fall for

<a href="https://theconversation.com/profiles/ralf-steinhauser-1459112">Ralf Steinhauser</a>, <a href="https://theconversation.com/institutions/australian-national-university-877">Australian National University</a> You see a fantastic offer, like a hotel room. You decide to book. Then it turns out there is a service fee. Then a cleaning fee. Then a few other extra costs. By the time you pay the final price, it is no longer the fantastic offer you thought. Welcome to the world of drip pricing – the practice of advertising something at an attractive headline price and then, once you’ve committed to the purchase process, hitting you with unavoidable extra fees that are incrementally disclosed, or “dripped”. Drip pricing – a type of “junk fee” – is notorious in event and travel ticketing, and is creeping into other areas, such as movie tickets. My daughter, for example, was surprised to find her ticket to the Barbie movie had a “booking fee”, increasing the cost of her ticket by 13%. It seems like such an annoying trick that you may wonder why sellers do it. The reason is because it works, due to two fundamental cognitive biases: the way we value the present over the future; and the way we hate losses more than we love gains. <h2>Present bias preference: why starting over feels too costly</h2> In the case of booking that hotel room, you could abandon the transaction and look for something cheaper once the extra charges become apparent. But there’s a good chance you won’t, due to the effort and time involved. This is where the trap lies. Resistance to the idea of starting the search all over again is not simply a matter of laziness or indecision. There’s a profound psychological mechanism at play here, called a present-bias preference – that we value things immediately in front of us more than things more distant in the future. In their seminal 1999 paper, <a href="https://doi.org/10.1257/aer.89.1.103">Doing it now or later</a>, economists Mathew Rabin and Ted O'Donoghue define present-biased preference as “the human tendency to grab immediate rewards and to avoid immediate costs”. They give the example of choosing between doing seven hours of unpleasant activity on April 1 or eight hours two weeks later. If asked about this a few months beforehand, most people will choose the earlier option. “But come April 1, given the same choice, most of us are apt to put off work till April 15.” In simple terms, the inconvenience and effort of doing something “right now” often feels disproportionately large. Drip pricing exploits this cognitive bias by getting you to make a decision and commit to the transaction process. When you’re far into a complicated booking process and extra prices get added, starting all over again feels like a burden. Often enough, this means you’ll settle for the higher-priced hotel room. <h2>Loss aversion: buying more expensive tickets</h2> Beyond the challenge of starting over, there’s another subtle force at work when it comes to our spending decisions. Drip pricing doesn’t just capitalise on our desire for immediate rewards; it also plays on our innate fear of losing out. This second psychological phenomenon that drip pricing exploits is known as loss aversion – that we feel more pain from losing something than pleasure from gaining the same thing. The concept of loss aversion was first outlined by economists Daniel Kahneman and Amos Tversky in <a href="https://www.jstor.org/stable/1914185">a 1979 paper</a> that is the third most-cited article in economics. <hr /> <figure class="align-center "><img src="https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=497&fit=crop&dpr=1 600w, https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=497&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=497&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=624&fit=crop&dpr=1 754w, https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=624&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=624&fit=crop&dpr=3 2262w" alt="A graphic representation of loss aversion. The pain from losing a good or service will be greater than the pleasure from gaining the same good or service." /><figcaption>How economists Daniel Kahneman and Amos Tversky graphically represented loss aversion. The pain from losing a good or service is greater than the pleasure from gaining the same good or service. Daniel Kahneman and Amos Tversky, Prospect Theory: An Analysis of Decision under Risk, Econometrica, Vol. 47, No. 2</figcaption></figure> <hr /> Drip pricing exploits this tendency, by dragging us away from more “rational” choices. Imagine you’re booking tickets for a show. Initially attracted by the observed headline price, you are now presented with different seating categories. Seeing the “VIP” are within your budget, you decide to splurge. But then, during the checkout process, the drip of extra costs begins. You realise you could have opted for lower-category seats and stayed within your budget. But by this stage you’ve already changed your expectation and imagined yourself enjoying the show from those nice seats. Going back and booking cheaper seats will feel like a loss. <h2>Do consumers need protection?</h2> Empirical evidence supports the above theoretical predictions about the impact of drop pricing on consumers. <a href="https://doi.org/10.1002/mar.21426">A 2020 study</a> quantified how much consumers dislike the lack of transparency in drip pricing (based on tracking the reactions of 225 undergraduates using fictional airline and hotel-booking websites). The authors liken the practice to the “taximeter effect” – the discomfort consumers feel watching costs accumulate. But drip pricing’s effectiveness from a seller’s perspective is undeniable. A <a href="https://doi.org/10.1016/j.jebo.2020.04.007">experimental study</a> published in 2020 found drip pricing generates higher profits while lowering the “consumer surplus” (the benefit derived from buying a product or service). A <a href="https://doi.org/10.1287/mksc.2020.1261">2021 analysis</a> of data from StubHub, a US website for reselling tickets, calculated drip pricing increased revenue by 20%. Which is why the tactic remains attractive to businesses despite customers disliking it. Buyers would benefit from a ban of drip pricing. Many countries are taking steps to protect consumers from drip pricing. The UK government, for example, announced a <a href="https://www.theguardian.com/business/2023/aug/21/growth-of-airlines-add-on-fees-sparks-calls-for-price-reforms">review of drip pricing</a> in June, with Prime Minister Rishi Sunak flagging the possibility of measures to curb the practice. The US government is also considering <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/06/15/president-biden-recognizes-actions-by-private-sector-ticketing-and-travel-companies-to-eliminate-hidden-junk-fees-and-provide-millions-of-customers-with-transparent-pricing/">new regulations</a>, with President Joe Biden denouncing “junk fees” in his <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/02/07/remarks-of-president-joe-biden-state-of-the-union-address-as-prepared-for-delivery/">2023 State of the Union address</a>. Proposed changes include requiring airlines and online booking services to disclose the full ticket price upfront, inclusive of baggage and other fees. The effectiveness of measures, however, is <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4430453">still being debated</a>. In the meantime, your principal protection is making a more informed decision, by understanding why the tactic works. Bargains may attract you, but you can learn to not fall for hidden costs and align your choices with your budget and values.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/211117/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ralf-steinhauser-1459112">Ralf Steinhauser</a>, Senior Research Fellow, <a href="https://theconversation.com/institutions/australian-national-university-877">Australian National University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/junk-fees-and-drip-pricing-the-underhanded-tactics-we-hate-yet-still-fall-for-211117">original article</a>.

Money & Banking

"Unbelievable but true": Tourist outraged over shocking restaurant fee

A tourist in Italy has been hit with a shocking fee from an upscale eatery after he asked for his sandwich to be cut in half. The anonymous man was travelling in Italy's picturesque Lake Como region, and stopped in at Bar Pace in Gera Lario, at the lake’s northern end, for a vegetarian sandwich and fries for lunch. Travelling with a friend, the man asked for the meal to be cut in half so they could share. After polishing off their lunch, the traveller was shocked when he was given the bill, noticing a charge he had never seen before. The man paid without arguing, but later took to TripAdvisor to leave a negative review. “Unbelievable but true,” the man captioned a photo of the receipt on TripAdvisor. The receipt lists the sandwich for €7.50 ($12.60), Coca Cola for €3.50 ($5.90), water for €1.50 ($2.50) and espresso for €1.20 ($2), along with the debated “diviso da meta”, or “cutting in half” fee, amounting to 2 euros, or $3.40. The confused customer gave the restaurant one star on TripAdvisor, far below the average of four and a half stars, based on over 100 reviews. After the review garnered a lot of unexpected attention, the restaurant's owner defended the fee to a local news outlet. “Additional requests have a cost,” owner Cristina Biacchi told La Repubblica. “We had to use two plates instead of one and the time to wash them is doubled, and then two placemats. It wasn’t a simple toasted sandwich, there were also French fries inside. It took us time to cut it in two.” She also noted that the customer did not complain or question the charge and clarified that she would have removed the charge from the bill, if someone had raised an issue. The extra charge is not unheard of in expensive cities and popular tourist destinations, with some cities in the United States are sometimes hitting diners with a share charge, or a split plate charge, to make up for the lower check average at a table, while some New York City eateries even ban the practice of sharing all together. Image credit: TripAdvisor

Travel Trouble

Richard Wilkins and Sir Bob Geldof catch up live on air

Richard Wilkins is the man with a black book of celebrity contacts so it’s no surprise that he’s friends with rock legend Sir Bob Geldof. The Boomtown Rats frontman was being interviewed for his own accomplishments, and the upcoming launch of his own independent radio station Disrupt Radio when he interrupted the interview to catch up with his old mate. "Lovely to see you, you're looking well I have to say," Wilkins told Geldof. Who replied: “I’m good how are you”, which Wilkins quickly responded to before asking his question. After answering a few questions about his upcoming gigs with The Boomtown Rats, the rock legend couldn’t hold his excitement of seeing his old mate and asked Wilkins how he was, for the second time. "How are things with you?" Geldof asked Wilkins. To which a slightly flustered Wilkins replied: "I'm good man, I will give you a call after the show," as he tried to get the show back on track. This elicited a chuckle from the Today Extra co-hosts Sylvia Jeffreys and Tim Davies who quipped “it’s not about you, it’s more about Bob” before steering the conversation back to the original topic of interest. Image: Nine/ Today Extra

Music

Returning and Earning for your community

Charities and community groups across NSW are cashing in empty drink containers to support their important work in the community, all with the added benefit of helping the environment. It’s an easy win-win to fundraise through Return and Earn, and it makes donating to a local charity or community group very easy. Return and Earn is the incredibly successful container deposit scheme in NSW, where 10 cents is refunded for every eligible drink container returned for recycling through the network of 600+ return points across the state. Since launching over five years ago, <a href="https://returnandearn.org.au" target="_blank" rel="noopener">Return and Earn</a> has become an important and well used channel for charities and community groups fundraising to support a range of local and broader causes. Groups such as Rotary and Lions Clubs, animal rescue organisations, and fire and rescue services are just a few of the many different cohorts that have partnered with Return and Earn and relied on the generosity of NSW citizens to help them do vital work in their communities. “We’ve seen many groups really embrace the scheme, showing a humbling passion for giving back to the community – whether it’s to help fund an event for a local club, or to donate to a charity,” said Danielle Smalley, CEO of scheme coordinator, Exchange for Change. “Some of these groups have raised a lot of money from recycling drink containers through Return and Earn. Often local residents and businesses are handing over their containers or donating their refunds to support the cause, proving there is enormous goodwill in the community.” The Gerringong Lions Club recently celebrated one million containers collected, raising $100,000 that was donated to a variety of causes including medical research, local sporting facilities, as well as helping both Australian and oversees Lions Clubs provide relief during catastrophes. <img class="alignnone size-full wp-image-67811" src="https://www.readersdigest.com.au/wp-content/uploads/2023/06/Gerringong-Lions-Club-image-2-for-article-2_RD.jpg" alt="" width="770" height="500" /> The Gerringong Lions Club are now raising around $20,000 each year. The COVID shutdowns and restrictions put a halt to the activities that would normally bring funds to the club. Return and Earn was the only means for the club to generate an income to help the community during this time. As routine users of the scheme, the Gerringong Lions Club are now raising around $20,000 each year, all the while making positive impacts to the environment. Bruce Ray is a past president and active member of the club, and says he gets a sense of satisfaction knowing they are helping the community while also looking out for the environment. “We have the bins at the hotel, the bowling club, and campgrounds. The club also provides the container collection bins for events such as weddings and uses them at local New Years’ Eve events,” said Mr Ray. In Cobar, the local Rotary Club is also using Return and Earn to support the work in their community. They partnered with the local Girl Guides who help the club sort through any drink containers collected. They’ve now raised more than $25,000 since they began in early 2020. Club Secretary Gordon Hill said that one of the benefits for the Girl Guides is the real-world experience in seeing how much locally created waste can be recycled. “It also provides a healthy opportunity for a challenge to see which girls can pack the most containers during a 1.5 to 2 hour session. The record currently stands at 3,080, but the challenge continues,” Gordon added. <img class="alignnone size-full wp-image-67813" src="https://www.readersdigest.com.au/wp-content/uploads/2023/06/Cobar-Rotary-Club-image-for-article-2_RD.jpg" alt="" width="770" height="500" /> In Cobar, the local Rotary Club has partnered with the Girl Guides to help with sorting! Since Return and Earn launched in December 2017, over $42 million has been raised through donations and return point hosting fees. The funds have made a significant difference to individuals and groups who have received the support. “There are a lot more collection drives in the community that we don’t track, so the total fundraising amount is in fact even higher,” Ms Smalley said. “We encourage all our Return and Earn users to consider donating containers to a local charity or community group either at the nearest Return and Earn machine or using the Return and Earn app. “And if you’re a member of a group looking for an easy and effective way to fundraise, consider Return and Earn where you can double the benefit by raising funds while also helping the environment.” Every Return and Earn machine features a local donation partner, to whom users can donate part or all of their refunds to. The charity listed changes every six months to give as many groups as possible the opportunity. Charities and groups can also elect to be listed on the Return and Earn app, allowing anyone using the app at a machine or automated depot to donate direct to their favourite charity. There are currently over 170 charities featured on the app. When using a Return and Earn machine, select donate, then select which of the charities listed you want the funds to go. If you’re using the Return and Earn app, simply select donation as your payout option and then select the charity or group you would like to donate your refund to. “Contributions don’t need to be big to make a difference. It can be as easy as collecting a few eligible drink containers and donating them to a charity, helping local communities thrive while looking after the environment.” said Ms Smalley. For more information on donating through Return and Earn visit <a href="https://returnandearn.org.au/donate/" target="_blank" rel="noopener">returnandearn.org.au/donate/</a> Images: Supplied This is a sponsored article produced in partnership with Return and Earn.

Money & Banking

“A lesson learned”: Uni student lands herself in an overdue book nightmare

A university graduate student received the shock of her academic career when an email arrived in her inbox to inform her she owed her school’s library a whopping $11,900 in overdue book fines. Hannah took to TikTok to share her story, posting a snippet of the horror email, and the news that her library account had amassed a debt of “$11,9000 owed for 119 lost books”. The books had been declared lost, though Hannah was quick to note that she was “still using” each of them, and had every intention of returning them once she was finished with her studies. To drive home the fact that the books were not missing, and instead safely in her scholarly possession, Hannah panned around the various piles of tomes stacked around her home, with a caption reading “the books aren’t lost, I’m just hoarding them until I finish my dissertation.” The email itself explained the books were marked as lost in the library’s system if they exceeded 30 days overdue, and that there was a flat rate of $100 per book in such instances. And according to the library, it was up to each patron to renew their books, and that Hannah “received overdue notices on the following dates prompting you to renew your library books before they are declared lost.” As she explained to The Daily Dot, she had checked out her collection three years prior while she’d been preparing for exams, and confirmed that she had received four reminders to either renew or return the books, but she’d put it off each time. “Then I got the automatic email,” she added, “saying all of the books were marked as lost and my account was charged $100 per book.” Hannah’s woe drew a mixed response from her audience, with some surprised that her library had even let her withdraw that many books in the first place, others unable to wrap their heads around the fact she could have let her situation get so bad, and many quick to defend the librarian, who they declared had only been doing her job. “My library only lets me check out 5 books at a time,” one wrote. “That’s why keeping library books past their due date is considered stealing,” another said, to which Hannah responded to promise her lesson had been learned. “Only 30 days over due??? Damn give a lil more time,” said one, with Hannah informing them that she’d had the books for years by that point. It wasn’t all bad for the budding scholar though, with Hannah explaining in another comment that “it was hunky dory”, as the library had waived her fees as soon as she’d responded to them, and that she’d been allowed to keep all 119 for an additional year. And, as she told another follower, “I’ve never replied to an email faster.” Images: TikTok

Books

Jimmy Barnes joins his family for special live performance

Jimmy Barnes and his talented family have wowed the Today Extra viewers with a rousing musical performance. Appearing on the breakfast show to promote the upcoming Jane Barnes Band tour, Jimmy was joined by his wife Jane, and daughter Mahalia, with a special addition of his son and Today Extra co-host David Campbell. To mark the family affair, the Barnes took the opportunity to perform a beautiful acoustic rendition of Nat King Cole's Around The World for the Today Extra audience. David admitted it was not the family's first time playing the song, saying it was their "party trick tune". "This is the first time you've heard it live on national television guys," an excited Sylvia Jeffreys said before introducing them. <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-permalink="https://www.instagram.com/p/CrzRx78SMeX/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/p/CrzRx78SMeX/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by Sylvia Jeffreys (@sylviajeffreys)</a> </div> </blockquote> Before their performance, David admitted that he was still tossing up whether he will join his family on tour with the Jane Barnes Band. "You were one of the original members," Jane told David. "I'm going to be singing with the two best singers in the land, sometimes three - I haven't negotiated with you yet." <blockquote class="twitter-tweet"> Here I am trying to take the run through seriously and they are, as usual being clowns. Will have to see if David can join us in one of the shows. I love him 💙 😂😂🎶🙏🏻 🕺<a href="https://twitter.com/hashtag/family?src=hash&ref_src=twsrc%5Etfw">#family</a> <a href="https://twitter.com/hashtag/music?src=hash&ref_src=twsrc%5Etfw">#music</a> <a href="https://twitter.com/hashtag/laughter?src=hash&ref_src=twsrc%5Etfw">#laughter</a> <a href="https://twitter.com/hashtag/Todayextra?src=hash&ref_src=twsrc%5Etfw">#Todayextra</a> <a href="https://twitter.com/DavidCampbell73?ref_src=twsrc%5Etfw">@DavidCampbell73</a> <a href="https://twitter.com/JimmyBarnes?ref_src=twsrc%5Etfw">@JimmyBarnes</a> <a href="https://twitter.com/MahaliaBarnes?ref_src=twsrc%5Etfw">@MahaliaBarnes</a> <a href="https://t.co/tms6NjNiQI">pic.twitter.com/tms6NjNiQI</a> — 💧Jane Barnes (@jane13barnes) <a href="https://twitter.com/jane13barnes/status/1653919562994429953?ref_src=twsrc%5Etfw">May 4, 2023</a></blockquote> Sylvia joked that David should do it for "mates rates" and he said he "used to be higher up" in the family hierarchy. "No offence, I'm calling my therapist after this," he laughed. You can check out the full video of their performance <a href="https://9now.nine.com.au/today/jimmy-barnes-david-campbell-perform-today-extra-host-sings-with-dad/3e9a5368-0590-4e2e-a180-23891b09eeb8" target="_blank" rel="noopener">here</a>. Image credits: Today Extra

Music

Travelling abroad? Don’t be tempted to pay your way using your home currency

Part of the joy of travelling comes from experiencing the unfamiliar – a different climate, culture or cuisine. But when it comes to paying for things abroad, we might feel more comfortable using the currency we are most familiar with, the one we use at home. This has recently become a common – and expensive – option for tourists withdrawing money from cash machines, or paying electronically in shops and restaurants. When a restaurant bill arrives for example, foreign customers may be offered the choice on the card reader to pay in their home currency rather than the local one. This feature, known as “dynamic currency conversion” or “currency choice” sounds appealing at first – a service which has done the hard work for you, converting the bill to a currency you understand, giving you a better idea of how much money you are spending. But it comes at a price – as the fees charged for this convenience can be exorbitant. In fact, <a href="https://fil.forbrukerradet.no/wp-content/uploads/2017/07/input-from-ncc-to-the-european-commission-on-dcc-30062017.pdf">one study</a> shows that the average fee applied to this kind of conversion is a whopping 7.6%, more than double the cost of paying in the local currency (usually between 1.5% and 3%). So suppose a French traveller goes out for dinner in a British town, and the final bill comes to £88.43, the equivalent of €100. Paying in UK currency, which would then converted to euros by the French diner’s bank, would lead to a payment of around €102. But using the dynamic currency conversion to pay the restaurant bill directly in euros would end up costing them €107.60. Despite the high fees, <a href="https://journals.sagepub.com/doi/full/10.1177/07439156231157721">our research shows</a> that more than half of international customers still choose to pay in their familiar home currency. The most obvious explanation for this is an understandable preference for the familiar when dealing with money abroad. But it is also true that the fees are not explicitly shown to customers. That is, tourists may see the applied exchange rate, but they are not shown the hidden fees or how that exchange rate compares with others. And while expensive for tourists, the currency choice “service” can be highly lucrative for those who operate it. The companies which provide dynamic currency conversion options earn significant conversion revenues – a portion of which is often shared with the business where the transaction takes place. <a href="https://www.electronicpaymentsinternational.com/opinion/dcc-routing-revenues-away-from-issuer-into-acquirers-pockets/">Sources indicate</a> that extra revenues for retailers come to around 1% of the transaction value. We have also been told of well known department stores training employees to actively encourage foreign customers to pay for purchases in their home currency. <h2>Greater transparency</h2> And despite the high conversion fees involved with dynamic currency conversion, most government regulators around the world have been hesitant to intervene. One possible reason for this is that regulation would be seen as potentially hitting the profits of local businesses. The exception is the European Union (EU), which considers excessive transaction costs <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32021R1230">to be a barrier</a> to the development of businesses and aims to protect European consumers. The latest <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32021R1230">EU regulations</a> (not yet enforced) aim to enhance transparency by including extra information about the costs of currency choice on card readers and ATMs. This is a step in the right direction. But we would in fact encourage a reduction in the amount of information to make things simpler, so that customers are made aware purely of the percentage fee being added if they choose to pay in their own currency. We also think there should be maximum conversion charges to protect unaware customers from excessive fees. With the continued growth of international travel, it is crucial to find ways to help people make informed financial decisions when dealing with exchange rates and making payments outside of their currency zone. But for now, travellers are likely to spend more of their money abroad than they need to, because of something they intuitively feel will make a transaction simpler and less time consuming. So if you’re on holiday or travelling for work, our advice is to decline the option of paying in your home currency and instead opt for the more reasonable conversion fees charged by your bank. Your travel experience could end up much cheaper if you do. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/travelling-abroad-dont-be-tempted-to-pay-your-way-using-your-home-currency-202795" target="_blank" rel="noopener">The Conversation</a>.

Travel Tips

Should I put more money into my super? What are the benefits and can I take it out before retirement if I need it?

Superannuation is never far from the headlines lately, with the government recently calling for <a href="https://treasury.gov.au/consultation/c2023-361383">views</a> from the public on what the objective of super should be. The basic idea behind super is you set aside a portion of your pay over your working life, so you can build up a nest egg to see you through your retirement years. But what if you’re worried you might not have enough super by the time you retire? Yes, you could top up your super now and watch the nest egg grow through the magic of <a href="https://moneysmart.gov.au/saving/compound-interest">compound returns</a>– but what are the downsides? If you’re considering putting more money into your super, and want to know more about how the whole system works, here are the basics. <h2>What are the rules about putting more money into my super?</h2> First, make sure you know where your superannuation actually is and how much you’ve got so far. This <a href="https://www.ato.gov.au/forms/searching-for-lost-super/">page</a> from the Australian Tax Office explains how to search for any lost super. The next thing to know is there are <a href="https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/super-contributions---too-much-can-mean-extra-tax/?page=2#Understanding_contribution_caps">limits</a> to how much you can contribute into superannuation. There are two types of super contributions you can make. The first category is called “<a href="https://moneysmart.gov.au/grow-your-super/super-contributions">concessional contributions</a>”. These are taxed at 15%, which may be lower than the tax you’d otherwise have to pay on that money. So making these super top-ups can not only grow your nest egg, but save you tax. The amount of concessional contributions you can make is A$27,500 per annum. That figure includes all the super your employer puts in your super account and any extra contributions you make under a salary sacrifice scheme or where you are claiming an income tax deduction. The second category, known as “non-concessional contributions”, means money you pay into your super withoutclaiming a tax deduction. This could be, for example, money from savings, an inheritance or a lottery win. There is a limit of $330,000 over three years (or $110,000 per year), for these contributions. <h2>What are the benefits of topping up my super?</h2> Two words: compound returns. Compound returns are where you earn returns not only on the original investment you put in, but also on any returns on that investment. As the government’s <a href="https://moneysmart.gov.au/saving/compound-interest">Moneysmart</a> website puts it, “you get interest on your interest”. Over the years, this means you could earn a lot more than you would if you didn’t top up your super. How much more? Well, it depends on the investment return and fees of your fund. But as an example: thanks to compound returns, putting an extra $100 per month into your super from age 30 could <a href="https://www.calc.help/industrysuper/add-extra-to-your-super">mean you retire</a> with an extra $65,000 in your account (here, I’ve assumed investment returns of 7.5%, accumulation inflation of 4% and salary inflation of 4%). And the longer it is there, the more it will grow – so starting top-ups early might pay off. This is particularly important for <a href="https://theconversation.com/spirals-and-circles-snakes-and-ladders-why-womens-super-is-complex-103763">women</a>, whose super balances may look a bit feeble if they take parental leave or cut their hours while raising a family. Then there’s the tax benefits of super top-ups. If you would normally pay a net tax rate higher than 15% on investments such as shares, your money will grow more quickly inside superannuation than shares. You may also be eligible for government co-contributions that add to your balance if you make a non-concessional contribution during the year and your income is less than $57,016. <h2>So what’s the downside? Can I access my superannuation before retirement?</h2> Basically, no. You must meet a “<a href="https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-using-your-super/withdrawing-your-super-and-paying-tax/?page=2#Conditionsofrelease">condition of release</a>” before being able to access your superannuation. The most common is retirement, defined as reaching the age of 65 or leaving work after reaching “preservation age” (which is 60 for anyone born after July, 1964). There are some <a href="https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/Early-access-to-your-super/">special circumstances</a> where you may be able to access your superannuation early. These are very narrow, and include serious financial hardship or necessary medical treatment that cannot be funded any other way. Death or terminal illness also qualify for release. <h2>But what if I need a deposit for a house?</h2> This is a dilemma for non home-owners. After compulsory superannuation guarantee deductions and HECS-HELP, it may be hard to save a deposit. One of the few circumstances where you access your superannuation early is through the <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/">First Home Super Savers Scheme</a>. If you make voluntary contributions, you may be able to withdraw these contributions for a home deposit. However, this scheme is very tightly regulated. You can read more about the rules for this scheme <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/">here</a>. <h2>So… should I put more money into my super?</h2> It depends. If you do, make sure you understand you will not be able to access that money until retirement. If you own your home (or intend to rent until retirement) you may want to put more into superannuation while you can afford it, knowing it is contributing to a secure retirement. But if home ownership is your goal, you should think carefully about choosing between superannuation and saving for a home deposit. Image credits: Getty Images This article originally appeared in <a href="https://theconversation.com/should-i-put-more-money-into-my-super-what-are-the-benefits-and-can-i-take-it-out-before-retirement-if-i-need-it-201950" target="_blank" rel="noopener">The Conversation</a>.

Retirement Income

Parents leave baby at airport counter after refusing to buy extra ticket

A couple were checking in for a flight from Ben Gurion International Airport to Brussels, Belgium on Tuesday when they made the decision to leave their baby behind. Upon their arrival at the airport check-in desk in Tel Aviv, Israel, it was revealed that the baby did not have a ticket. Rather than address the situation and ensure their child’s safe travel, the pair opted to proceed to security without their stroller and its young occupant. The airline they were flying with, Ryanair, state on their website that "infants can be included in a flight reservation during the online booking process." Following their process for booking with an infant, a message will pop-up to let travellers know there is a €25 charge (approximately $39) for each one-way flight the baby participates in from an adult’s lap. If the adults want the baby to travel in a seat of its own with the proper equipment, a seat must be paid for. The parents, apparently, had not made such arrangements for their baby. The matter was referred to officials, as confirmed by a Ryanair spokeswoman. "These passengers travelling from Tel Aviv to Brussels presented at check-in without a booking for their infant,” she told CNN, “they then proceeded to security leaving the infant behind at check-in. "The check-in agent at Ben Gurion Airport contacted Airport Security, who retrieved these passengers, and this is now a matter for local police." Reports of the situation were confirmed by the Israeli Airport Authority, who provided a statement to CNN and offered some more information into what went on. "A couple and an infant with Belgian passports arrived for a flight at Terminal 1 without a ticket for the baby,” it read. “The couple also arrived late for the flight, once the check-in for the flight was closed. The couple left the infant seat with the baby and ran toward the security checks at Terminal 1 in an attempt to reach the boarding gate for the flight." A video allegedly from the airport at the time, staff can be heard expressing their sadness for the child. Another woman exclaims, “she left him there, I swear!” Ryanair staff also voiced their shock over the incident, telling N12, “we’re never seen anything like it.” Despite reports that the parents were detained, an Israel Police spokesman told CNN that the matter appeared to have been resolved by the time law enforcement arrived on the scene, stating that "the baby was with the parents and there's no further investigation." Images: Getty

Travel Trouble

The most feel-good way to recycle

Long-time Return and Earner "Scooter Dave" has been a keen participant in the NSW container deposit scheme since the program started, and the Illawarra local has returned 500,000 containers in that time. Dave gets about on a scooter and any day when weather and health permits, he completes his route to collect rubbish from Windang Bridge in Shellharbour. Along the way he picks up eligible drink containers from residents and businesses who keep them in their yards ready for his scooter collection service. He has donated all of the $50,000 in refunds to many charities, including the Smith Family, the Sydney Children’s Hospital, and children’s ward in Wollongong, bushfire appeals and the Illawarra Convoy. “It gives me something to do, and I know that I am doing something to help people," says Scooter Dave. "People always say that there should be more people like me. There are, but they aren’t cleaning up rubbish like I am.” In a world that’s becoming more eco-conscious, we’re seeing more and more initiatives implemented to reduce the impact we’re having on the planet – from the single-use plastic bans to adopting reusable packaging and recycling. Recycling remains one of the best ways to help protect the environment. The benefits of recycling include reducing the amount of rubbish that ends up in landfill or as litter in our local environment, and reducing the need to extract raw materials from the earth to create new products such as mining raw aluminium to create cans. And with <a style="font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;" href="https://returnandearn.org.au/?utm_source=over-60&utm_medium=article&utm_content=native-article&utm_campaign=grey-partnership" target="_blank" rel="noopener">Return and Earn</a> there are even more direct benefits for you. Return and Earn is one of many drink container return schemes that have been adopted around the world, where customers who return their used eligible drink containers for recycling can collect a refund. “With Return and Earn, you earn a 10c refund for every empty can, glass or plastic bottle, carton, juice box or popper that you return through one of its 600 return points across NSW. “Since the scheme launched five years ago, over 8.6 billion containers have been returned for recycling by the NSW public resulting in over $860 million in container refunds back in people’s pockets,” says Danielle Smalley, CEO of Exchange for Change, scheme coordinator for Return and Earn. The scheme is entirely funded by the beverage industry, aiming to place responsibility for container recycling firmly back with the industry. The scheme targets commonly littered items and includes most 150ml to three litre plastic, glass, aluminium, steel, and liquid paperboard containers. Eligible containers featuring the 10 cent refund mark can be redeemed for the refund. “Return and Earn is an extraordinary example of how individual action can have a collective impact,” says Smalley. The environmental benefits of the scheme have exceeded expectations – reducing the volume of drink container litter by 52 per cent compared to pre-scheme levels and sending over 755,000 tonnes of material to be recycled. Plus the Return and Earn app makes recycling your containers even easier because you can check the map to see where the nearest return points are to your location and make sure they’re open. Another fantastic feature on the app is the container checker which helps you avoid taking containers that are not eligible. Simply scan the barcode on your container and the app tells you if it can be returned for recycling at a return points. If not, they can go straight into your household recycling bin. Choose your recycling experience To return your containers, you can choose from four types of return points, depending on what suits you and what is nearby. There are Return and Earn machines - a self-service option where you return your containers one-at-a time. You’ll receive a receipt which is redeemable for cash at the partner redemption location or payment straight to your bank account by downloading the Return and Earn app. There are also Return and Earn Centres which are larger format indoor locations featuring multiple machines inside. <img src="https://oversixtydev.blob.core.windows.net/media/2023/01/Tomra1.png" alt="Return and Earn" width="741" height="423" /> For larger numbers, heading to your nearest automated depot is your best option. Here staff will take your bags of eligible containers and process them in their automated counting system called a singulator. Once counted, they’ll provide you with your cash refund. Even local businesses are taking part, with some corner stores, newsagents, fruit shops and some Surf Life Saving Clubs able to take your containers and give you your refund. To find your nearest return point, visit <a href="https://returnandearn.org.au/return-points/?utm_source=over-60&utm_medium=article&utm_content=native-article&utm_campaign=grey-partnership" target="_blank" rel="noopener">www.returnandearn.org.au</a>. Top tips for returning and earning When you’re ready to return your first collection of containers, here are some tips to make your experience even easier: <ul> <li>Download the Return and Earn app: use the app store available on your mobile phone. </li> <li>Sort your containers before you go: if you’re using a Return and Earn machine, sort your glass containers from your plastic bottles and cans as these are return using separate chutes on the machine. If you’re using an automated depot or an over-the-counter return point, there’s no need to sort. </li> <li>Check if your containers are eligible: Use the Return and Earn app to check if your containers are eligible for a refund. And make sure they’re uncrushed, with the barcode visible and keep the lid on.</li> <li>Plan your trip: make sure to check opening times of your nearest return point via the Return and Earn app or website. You can even optimise your trip by checking the busiest and quietest times to visit.</li> </ul> With these tips under your belt, you can make the most of your Return and Earn experience and reap the benefits for your wallet and for the environment. <iframe title="YouTube video player" src="https://www.youtube.com/embed/OYDROMQIDbU" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe> For more information, visit <a href="https://returnandearn.org.au/?utm_source=over-60&utm_medium=article&utm_content=native-article&utm_campaign=grey-partnership" target="_blank" rel="noopener">Return and Earn.</a> All images: supplied This is a sponsored article produced in partnership with <a href="https://returnandearn.org.au/?utm_source=over-60&utm_medium=article&utm_content=native-article&utm_campaign=grey-partnership" target="_blank" rel="noopener">Return and Earn</a>.

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