Industry insiders have warned that minimum rates and hotel deals can have a negative impact on employees, destinations and sustainability.
christopher elliott
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- Deeply discounted travel often comes with hidden costs, such as overworked staff and poor service.
- A “race to the bottom” regarding pricing can lead to environmental destruction and cultural degradation.
- Experts have suggested that some airlines may be cutting costs on safety measures to offer ultra-low fares.
When Robert Gurna found a round-trip ticket from Austin, Texas, to Denver for just $67, he thought he had a deal. But as he sat on a delayed plane, watching overworked agents juggle overbooked flights, he wondered. Too cheap?
“There’s something seriously wrong with that business model,” said Mr. Gruna, an Austin real estate investor. “The flight was three hours behind schedule, the gate agents were tired and exhausted, and the plane was uncomfortably full. That $67 ticket showed that the airline was selling seats to fill the plane and cutting staff and service to dangerous levels.”
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Welcome to the dark side of the race to the bottom in the travel industry. There, deep discounts come with hidden costs that degrade the experience and harm communities, workers, and the environment.
This is a complex issue that challenges corporate practices, government policies, and the decisions we make as travelers. However, when you think about it this way, you may wonder if the travel money is not enough.
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Human damage caused by cheap travel
Conventional wisdom holds that travel has become too expensive, and yes, I’ve written about it, but a growing number of industry insiders are saying the opposite. Travel is sometimes dangerously cheap, and someone else is always paying the real price.
Alexandra Dubakova, chief marketing officer of a travel company based in Zurich, Switzerland, recently visited Egypt, where she got to see it firsthand.
“Low prices mean cheap life,” she explained. “Everyone I met, whether in hotels, restaurants or tourist traps, looked tired and confused. But the moment they made eye contact with a foreigner, they instantly changed. Like a light switch, their smiles came and went.”
The numbers behind Egypt’s tourism industry speak for themselves. Workers’ wages are so low that they rely on begging. Dubakova recalled the most troubling example. In a public toilet, a desperate man stole all the toilet paper, stood at the door and resold it to tourists.
“It was disturbing,” she said.
Cord Thomas, president of a vacation rental management company in Broomfield, Colorado, is observing this movement across the hospitality industry.
“The number of housekeepers who clean 20 rooms on each shift is keeping hotel prices low, while famous tourist destinations have been transformed into overcrowded souvenir images,” he said. “Travellers who are saving money are often unaware of the employee fatigue and environmental damage that bookings cause.”
destruction of the environment and culture
The environmental costs of ultra-cheap travel go far beyond carbon emissions and leisure travel.
“Frequent fliers are responsible for the majority of aviation emissions,” said Rebecca Thompson, founding CEO of Sustainable Travel Technologies.
Ultra-cheap prices are hard to match with the sustainability narrative that many travel companies are trying to weave in.
On the other hand, they offer significant discounts on fares and fees. On the other hand, it claims to be environmentally responsible by using small amounts of sustainable aviation fuel, building a solar power plant behind the hotel, recycling and growing vegetables. I’ve been covering sustainability for years, and I hear this kind of double-talk all too often.
Cultural heritage will pay a similarly high price. Frank Marr, a spokesperson for Nueva Vista, a destination management company in Armenia’s Caucasus Mountains, has seen firsthand how cheap tourism is hollowing out authentic experiences.
“One-day tours can cost less than $25, pushing guides below the local living wage,” he said. “While Instagram-famous areas like Tbilisi’s Old Town are inundated with bargain-basement crowds, quiet UNESCO treasures like Azerbaijan’s Sheki Khan Palace and Armenia’s Akhtara Monastery struggle for preservation funds.”
What to do about the race to the bottom
Travel industry experts increasingly recognize that the obsession with low prices is unsustainable.
“Low prices tend to hurt in any industry when players try to differentiate on price,” said Danish Shah, a marketing professor at Georgia State University. “Airlines have sought to achieve economies of scale by reducing legroom and reducing the quantity and quality of in-flight meals. All of this has been achieved at the expense of service quality and consumer experience.”
The reality of “cheap” travel is often more expensive than advertised.
“Hidden fees can undermine trust and create legal and regulatory issues for airlines and travel companies,” added AirHelp Chief Legal Officer Eric Napoli.
Prices that are too low can also affect safety, said Bill McGee, a senior researcher at the American Economic Liberties Project. His research found that airlines are cutting costs in key areas to maintain extremely low prices.
“The mechanic said the $99 ticket came at a price,” he said. “And those savings came from outsourcing heavy equipment maintenance to El Salvador, China and Singapore, far from the scrutiny of the Federal Aviation Administration.”
So what’s the solution?
The path forward requires fundamental changes in how companies price travel products and how we perceive the value of those products.
AirHelp’s Napoli said one solution is to improve price disclosure.
“Airlines and travel companies should be transparent from the start, especially when passengers choose different baggage options and services and the fees start to add up,” he said.
Rebecca Thompson of Sustainable Travel Technologies believes that better government policy could address the issue.
“There is a proposed tax on frequent flyers where the more flights a traveler takes, the more they pay,” she said. “This could indicate that those who pollute the most are paying the most for the impact they are having on the environment, while keeping annual trips affordable for the majority.”
John William, a travel advisor at Easy Travel and Tours, said prices should reflect the exact cost of providing the service. Also, many people are willing to pay for products that benefit the community.
“I think travelers will be prepared to pay a reasonable price if they understand how it helps sustainable communities, fair treatment of labor and conservation,” he says.
Of course, the solution ultimately rests with the traveler.
“People should avoid short weekend getaways because flight prices are so low,” said vacation rental expert Thomas. “Take less meaningful travel and spend your money on things that benefit your local community.”
You get what you pay for
It wasn’t just cheap flights that Mr. Gurna struggled with unsustainable pricing. He also paid $45 a night for a hotel room that should have cost $180 a night. The experience stayed with him even after he checked out.
“One person manned the front desk, checking in guests, answering phones, and taking maintenance calls all at the same time,” he recalls. “The housekeeping staff were cleaning the rooms too quickly, which compromised the overall cleanliness, and the breakfast bar was out of food by 8am, as the management cut corners whenever possible. The human cost of the low rates was visible and it was disappointing to pay so little.”
This guilt reflects a growing awareness among travelers that value is being extracted from places that claim to celebrate at bargain prices. Ultra-cheap travel does not democratize the experience. It degrades them, turns destinations into theme parks, and turns workers into props for someone else’s Instagram stories.
Bottom line: We probably can’t afford such a cheap price.
christopher elliott I’m an author, consumer advocate, and journalist. he founded Elliot Advocacy, A non-profit organization that helps solve consumer problems. he publishes Elliot Confidentialtravel newsletter, Elliott Reporta news site about customer service. If you need help with a consumer issue, you can: Contact him here Or email chris@elliott.org.
