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Bits: new HMRC card fees, Hilton sale, BA long-haul ‘no suitcase’ fares inevitable

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News in brief:

New HMRC fees for tax payments on credit cards published

As we have mentioned on HfP numerous times, the last day to pay tax bills on a personal credit card is 13th JanuaryThis is a licence to print cheap miles and points, given the low 0.38% feeThis article shows you how best to exploit it.

The Revenue WILL continue to accept payment with a corporate / business MasterCard or Visa.  This is unlikely to make sense for most people because there are virtually no business Visa or Mastercard products which gives rewards.  There are none that give travel rewards that I know about.

Here are the charges from 14th January:

VISA Business Credit Card 1.70%
VISA Commerce Credit Card 2.80%
VISA Corporate Credit Card 1.94%
VISA Purchasing Credit Card 1.92%
VISA Commercial Credit Card 1.94%
Mastercard Business Credit Card 1.80%
Mastercard Corporate Credit Card 1.98%
Mastercard Purchasing Credit Card 2.20%
Mastercard Fleet Credit Card 1.97%
Mastercard Commercial Credit Card 1.98%

The only possible upside I can imagine is using a Curve Card, which is treated as a Business Mastercard.

The fee will be 1.8%.  However, if you are self-employed and paying VAT, PAYE or corporation tax, the fee will be a deductible business expense.  If you are a higher rate taxpayer, the net cost including the NI saving would be just under 1%.  If you have a legacy mileage card, such as the ‘1.25 miles per £1’ American Airlines Visa, this is not bad.

You can find our more about Curve in this article.  They will pay you £5 for trying it out.

Hilton weekend sale still running

Hilton currently has a sale running covering Europe, the Middle East and Africa.  It is valid for ALL of 2018 (and the rest of 2017) but only for weekend stays.

You can see full details on the Hilton website here.

Here are the headline details:

Valid for participating hotels in the UK, Middle East, Africa and Europe

Discounts are up to 25% off ‘Best Available Rate’ and ‘Best Available Rate With Breakfast’ for Hilton Honors members, and up to 20% off for non-members

Bookings are non-changeable and non-refundable (so, let’s be honest, it isn’t a full 25% discount as a non-refundable rate is usually 10% cheaper anyway)

You must book at hilton.com here 

Bookings valid for WEEKEND STAYS at any point between now and the end of 2018

Bookings must be made by 31st January 2018

Given that you can book for the whole of next year, you may be able to lock in a deal for any weddings or other events which you know are coming up.

The photo below is the new-ish Hilton Bournemouth which I reviewed here.

KLM / Air France / Delta launch ‘no luggage’ fares, leaving BA with little choice

The ‘hand baggage only’ trend has now hit transatlantic fares.  From 10th April, standard economy fares from the UK to the US or Canada on Delta, Air France or KLM will be ‘hand baggage only’ with a 10kg limit.

The cost of a suitcase will be, each way:

  • 1st bag fee $60 / €50 / 75 CAD
  • 2nd bag fee $100 / €85 / 120 CAD

To be honest, it is difficult to see how British Airways can avoid being drawn into this.  It already faces stiff competition from Norwegian on many routes to North America and now Singapore too.  The key factor at play is that online travel agent search results do not adjust to reflect baggage costs.

A Delta fare may now appear cheaper than a British Airways fare on Expedia, but only when you come to book will you realise it is an extra £80 for your suitcase.  How many people will still book the Delta fare, assuming that BA would add a similar fee even though it doesn’t?  Enough, I imagine.

It is virtually certain that Virgin Atlantic will have to adopt this system when its transatlantic joint venture with Delta, KLM and Air France is approved in 2018.  What chance of BA holding out then?

Comments (99)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • filipino_chino says:

    I followed all these blog posts about cheap tickets to North America, went to book and found out about the lack of baggage…. BA works out better 🙂

  • Fiona Slessor says:

    I definitely have seen what I thought were good fares and then realised the luggage had to be added on. I then go back to the overall cheapest fare. Surely most folks do?

  • Lady London says:

    Wondering why Star Alliance isn;t mentioned who overall have more airlines with more planes doing more routes carrying more people longhaul. At least Star Alliance (the bigger Alliance of the 3, presumably?) isn’t showing signs of this rubbish yet.

    Is the whole world (even bigger Alliances) now doing “Delta see, Delta do” too?
    With respect, my luggage costs don’t need this sensationalism.

    • John says:

      Lufty may need to follow suit too. And they are just copying LEVEL and Norwegian

      Wasn’t Delta the first of the Americans to go revenuebased?

      • Lady London says:

        Yup. Delta were the first to go revenue based

        And to hide their award chart without any warning/

        Er…… Oh, wait! British Airways’s award chart disappeared off their website just a few days ago !

    • Rob says:

      Because everything we do goes via a BA filter, basically ….

  • Gavin says:

    Will it be transatlantic only? Can’t see it working on African / Asian routes

  • Graham says:

    HMRC – I haven’t checked this, but presumably they still accept personal debit cards? Tesco bank pays 0.3 Avios/£1 via Clubcard points with no fee.

    • Rob says:

      Yes they do.

    • Tim W says:

      That’s why I have a shiny new Tesco current account!

    • Rob says:

      Yes, although how long it takes Tesco to stop this I don’t know. Probably good for at least a year as they won’t wake up to the full force of it until the 31st July self-assessment bills are due.

  • Andrew says:

    We need some legislation quickly that demands clear detailing of luggage entitlement and costs in the pricing matrix on travel agents websites.

    It’s very easy to get caught out. On a United trip (booked via Expedia) from EDI to DCA via EWR last summer, I paid attention to the hold luggage element – all fine usual 23Kg. What I didn’t check was that I wasn’t entitled to the standard carry-on – just the very small “personal item” of 22 cm x 25 cm x 43 cm max. It was only on the train to the airport when my mate pointed out my bag was too big – so that was a dash to TK Maxx at Edinburgh Park for a smaller rucsac.

    • JP says:

      Although I haven’t seen any main carrier enforce cabin bag size rules, just the ryanair type airlines. Sometimes people have full size suitcases!

      • Andrew says:

        They didn’t at Edinburgh, but when we switched at EWR, they were checking ruthlessly at boarding.

      • Liz says:

        Virgin weighed our cabin bag in Sept coming back from Washington DC and were strict on the 10kg limit.

      • Fenny says:

        It’s the lack of enforcement that’s frustrating. Someone with a rolling wardrobe as hand luggage should be sent to the back of the queue for boarding and charged double to have it put in the hold!
        Bah, humbug!!!

  • Iain says:

    Slightly OT but any recommendations on the best Hilton Group hotel in Dubai? Need to balance quality v central location. Thinking of locking in weekend sale price. Thanks.

    • Rob says:

      If you want a beach resort, there is only one option – well, technically two as I think the Hilton Executive Apartments are connected by a bridge across to the road to the beach hotel.

      The Doubletree in the Marina (Doubletree Jumeirah Beach) is interesting because it has its own little private beach, is new and is mainly suites. There is long-term construction in this area though so it depends what state that is in.

      Conrad is the poshest and well situation for DIFC but if you want to be there I’d say Jumeirah Emirates Towers opposite is a better property, partly because the small mall underneath. Remember that there isn’t much public beach in Dubai so a hotel with direct access is good.

      • Sussex Bantam says:

        We’ve stayed at the DoubleTree and would recommend it. New hotel with rooms of a very high standard and a really nice breakfast. The gardens of the hotel lead onto the private beach (which isn’t that little) and then onto the main beach. Pool has a nice view of beach and sea and a swim up bar (which is v expensive !).

        We didn’t eat dinner in the hotel so can’t comment on that but it is easily walkable to the main Marina area which has loads of choice.

        There was construction work going on but it didn’t disturb us too much.

    • Andrew (@andrewseftel) says:

      I had a very pleasant stay at the Conrad and would recommend if the beach isn’t a priority. Was given a very early check in after a night flight, excellent international breakfast spread (and service until 11am from memory), good exec lounge. Pool area is fine for a lazy day, but probably not enough if you want to spend the entire trip on a sun lounger. Good location right on top of a metro station and on the main road for taxis. No teddies though 🙁

      • Richmond_Surrey says:

        Well, I had bad stay in Conrad Dubai, worst Conrad I visited and don’t recommend it. Read reviews on Flyertalk.

  • Lumma says:

    There’s virtually no overhead locker space already on BA’s A380 upper deck economy. It’ll become a nightmare if they start charging for checked bags

    • Talay says:

      This is the foreseeable consequence of this policy, where people attempt to circumvent the rules with things stuffed into coats, spurious “duty free” purchases and all sorts of “extras” which clog up luggage space.

      Given the weight per passenger calculations must be adjusted for safety when this happens, and the fuel burn increases accordingly, the only real saving ins the on ground handling of the baggage, which you would think was pretty small compared to pissing off every economy passenger forever more ?

    • Lady London says:

      The overhead luggage bins on the A380 are huge.

      I always wait awhile after I toss an item into one of those.

      Usually there’s a 5 second wait till I hear the luggage hit the bottom.

      So if they’re full then they’re really full.

      • @mkcol says:

        On the upper deck between doors 3 & 4 they are tiny as the roofline slopes down.

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