Convenience Charges……

I agree that it’s convenient for us buying goods and services online. We don’t have to go, sometimes stand in the queue to get the same services.

However the convinience to the providers of such goods and services are much more than to the users. 

Take the case of air tickets booking. The airlines get to know instantaneously how many are booked and paid for a particular flight.

Moreover, there is saving in the number of headcount required at airline counters or at the travel agents. Then think about the hassle in managing cash, it’s security, insurance, transportation costs, accounting and reconciliation. Also they don’t have to print expensive air tickets.

Advertising of the goods and services are easier with widest reach. 

While the business is enjoying all the prime benefits, it’s the consumer who is asked to pay a convenience charge.

When I was working overseas, we used to incentivise customers in using online channels by providing discounts and other promotions.

Perhaps it’s a phenomenon in India that online consumers are charged higher, calling it a convenience charge.

This is ‘cartel’ in action and should be banned, especially in a time where digitisation is a declared policy.

Otherwise the silent majority will continue to be at the receiving end and suffer……

Convenience Charges……

19 thoughts on “Convenience Charges……

  1. I have difftent opinion , usually you have to pay tax on airline tickit at higher rate . But if airlines show convienience charge sepratly you it will lead to less GST ( goods and service tax ) thats why they charge convieninence charge sepratly .
    My logic is based on widly accepted policy, it will change by taxable terretory .

    Liked by 1 person

    1. My impression on this convenience charge is that it’s levied when service is booked online. I suppose one doesn’t have to pay if paid at the counter.
      A charge for booking online is against common sense as it’s the biggest beneficiary charging it. And the regulatory authorities and government with sworn objective of going digital is keeping a blind eye.
      If this is not the case i am mistaken

      Like

    1. Make my trip is famous for this. And now airlines are also charging. Online usage is the declared government policy and beneficial more to the company than the individual

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s