Airline Pricing is so Confunding

AdamZ

Touchdown! Greaser!
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Display name:
Adam Zucker
So I'm online on the USAir website booking a trip for my wife and I and the price was a bit steep IMHO so I jumped on AA's website as I knew they also flew this route. As I was perusing the AA site I notice that the flight times for the most part mirrored those on the USAir site and then remembered that they merged and of course the notations on the AA site indicated that the route was flown by USAir or a USAir badged carrier. But here is the kicker. The same ticket was $40 less on the AA site.
 
So I'm online on the USAir website booking a trip for my wife and I and the price was a bit steep IMHO so I jumped on AA's website as I knew they also flew this route. As I was perusing the AA site I notice that the flight times for the most part mirrored those on the USAir site and then remembered that they merged and of course the notations on the AA site indicated that the route was flown by USAir or a USAir badged carrier. But here is the kicker. The same ticket was $40 less on the AA site.

Worse, if it's an AA operated flight, the fare is usually cheaper on the US site. Or skip it all and book Southwest or JetBlue.
 
Worse, if it's an AA operated flight, the fare is usually cheaper on the US site. Or skip it all and book Southwest or JetBlue.

Wish I could take Southwest or JetBlue but they don't fly to the route.
 
Nothing confusing about it. I dont know when the actual merge date is set, but so far they are two different carriers with two different tarriffs that code-share all of their fligths. I flew Northwest until they merged with delta, was the same thing during the period before the certificates and tariffs had been merged.
 
Kayak.com has always been a good one for finding deals.

Book Virgin or Alaska, other wise pre drink before the flight....heavily.
 
Copying and pasting from a website...let's see how this works.

If Paint were sold like Plane Tickets: Buying Paint from a Hardware Store

Customer:
Hi. How much is your paint?

Clerk:
We have regular quality for $12 a gallon and premium for $18. How many gallons would you like?

Customer:
Five gallons of regular quality, please.

Clerk:
Great. That will be $60 plus tax.

Buying Paint from an Airline:

Customer:
Hi, how much is your paint?

Clerk:
Well, sir, that all depends.

Customer:
Depends on what?

Clerk:
Actually, a lot of things.

Customer:
How about giving me an average price?

Clerk:
Wow, that's too hard a question. The lowest price is $9 a gallon, and we have 150 different prices up to $200 a gallon.

Customer:
What's the difference in the paint?

Clerk:
Oh, there isn't any difference; it's all the same paint.

Customer:
Well, then, I'd like some of that $9 paint.

Clerk:
Well, first I need to ask you a few questions. When do you intend to use it?

Customer:
I want to paint tomorrow, on my day off.

Clerk:
Sir, the paint for tomorrow is the $200 paint.

Customer:
What? When would I have to paint in order to get the $9 version?

Clerk:
That would be in three weeks, but you will also have to agree to start painting before Friday of that week and continue painting until at least Sunday.

Customer:
You've got to be kidding!

Clerk:
Sir, we don't kid around here. Of course, I'll have to check to see if we have any of that paint available before I can sell it to you.

Customer:
What do you mean check to see if you can sell it to me? You have shelves full of that stuff; I can see it right there.

Clerk:
Just because you can see it doesn't mean that we have it. It may be the same paint, but we sell only a certain number of gallons on any given weekend. Oh, and by the way, the price just went to $12.

Customer:
You mean the price went up while we were talking!

Clerk:
Yes, sir. You see, we change prices and rules thousands of times a day, and since you haven't actually walked out of the store with your paint yet, we just decided to change. Unless you want the same thing to happen again, I would suggest that you get on with your purchase. How many gallons do you want?

Customer:
I don't know exactly. Maybe five gallons. Maybe I should buy six gallons just to make sure I have enough.

Clerk:
Oh, no, sir, you can't do that. If you buy the paint and then don't use it, you will be liable for penalties and possible confiscation of the paint you already have.

Customer:
What?

Clerk:
That's right. We can sell you enough paint to do your kitchen, bathroom, hall and north bedroom, but if you stop painting before you do the bedroom, you will be in violation of our tariffs.

Customer:
But what does it matter to you whether I use all the paint? I already paid you for it!

Clerk:
Sir, there's no point in getting upset; that's just the way it is. We make plans based upon the idea that you will use all the paint, and when you don't, it just causes us all sorts of problems.

Customer:
This is crazy! I suppose something terrible will happen if I don't keep painting until after Saturday night!

Clerk:
Yes, sir, it will.

Customer:
Well, that does it! I'm going somewhere else to buy my paint.

Clerk:
That won't do you any good, sir. We all have the same rules. Thanks for painting with our airline.
 
Haha!

You want your paint to come in a can? That'll be another $8.
Lid for the can? $5
We can't guarantee all the cans will be the same color, but for an extra $30 per can we'll do our best.

It could go on and on.
 
The airlines are running out of things to charge extra for. Pay toilets may be in the future.
 
Another example of, "huh? What?!?"

My dad needed to fly from DFW to New Bern, NC (KEWN). Best selection of airline was US Air. Flight would include a stop at Charlotte, NC for change of planes.

Since this was just within a 10-day window before travel, total cost DFW-EWN round trip was about $460.

Then Dad has the bright idea of staying a day extra in Charlotte. So we researched the cost of buying two pairs of R/T tickets, one DFW-CLT and the other CLT-EWN, with the appropriate dates to accommodate the extra day in Charlotte. Turns out we selected the same flight# and time for the DFW-CLT legs as he would fly if he didn't stay longer in CLT.

The astounding part? The ticket cost for just the DFW-CLT r/t was $1000!! Coach, no special seats, and sitting across from the rear galley on the MD80. And when we added in the CLT-EWN legs, the total outlay before fees was edging on $1300.

I don't know what the reservation computer was programmed for, but that's really strange. Taking the same flights, but continuing onward to EWN, was a difference of nearly $900.00. :mad2:
 
The airlines are running out of things to charge extra for. Pay toilets may be in the future.
If that happens, I'll take a sh*t under my seat on final (so I don't have to suffer long). It'll suck to be the next passenger in that seat or the one in front or back. I'll make sure to have some airline food, they will all suffer.:goofy:
 
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I've seen flights XXX-YYY-ZZZ being significantly cheaper than XXX-YYY. Same flight numbers, just without the additional leg.

And you can't just book the XXX-YYY-ZZZ and just not take the last one, because they'll detect that and kill your trip back.
 
And you can't just book the XXX-YYY-ZZZ and just not take the last one, because they'll detect that and kill your trip back.

I once needed a one way ticket and I was able to get it for about a third of the price by buying a round trip ticket that had a layover at my final destination. Carry on luggage and just walked out of the airport. I'm probably on some list somewhere after that....
 
Thus is life in a de-regulated airline world. You want stability - bring back the regulation.
 
Why is it this way?

Because you asked for it. :mad2:

You said you wanted to use the Internet to buy the ticket. So, the cheapest price gets listed first. Most American's will not even check the second page. So, some enterprising airline educative said, let's see how stupid American's are. I'll price my ticket $10 less so it shows up in the first page or a price search. Airline B charges $10 more, but doesn't charge a bag fee. So airline A gets the sale and then charges for the bag. BTW, the bag fee doesn't get taxed either. Double score!

The less cynical version is that the day the airline puts its flight on the schedule, it's commited to 90% of the cost of the flight. To reduce the risk, it will discount the ticket to get enough early sales to cover their costs. Then they will progressively increase the cost to raise their profit margin. As the day of the flight approaches, they will then drop the cost if enough seats remain unsold. This reduces the loss or increases revenue. The airline will also reserve some seats for alliance members and for other reasons until the last day. Bob Crandel used to say that it was all of the early discount ticket sales that made the flights available, despite the fact that American made more money on last minute tickets.

If you ever are bored on a day the stock market is on holiday, CNBC had a great piece on a day in the life of American Airlines. Very interesting and had a great rundown on yield management.
 
I don't typically buy through the Internet, I use GMT and they book me Seaman's tickets which gets me two checked bags and two carry ons as well as no-fee rescheduling.
 
The airlines are running out of things to charge extra for. Pay toilets may be in the future.
Pretty sure RyanAir already tried that, and they also considered removing the rear toilets from their fleet to increase capacity.
 
I'm no IT expert, but I see on those "lifehack" pages to ensure you delete your browser cookies, otherwise the prices go up when they notice you're keep looking around...

Or just become an airline pilot, and they're all free and you're almost guaranteed a spot. :cheerswine:
 
I don't typically buy through the Internet, I use GMT and they book me Seaman's tickets which gets me two checked bags and two carry ons as well as no-fee rescheduling.

Spend thousands for AB to save hundreds on airfare. :thumbsup:
 
Spend thousands for AB to save hundreds on airfare. :thumbsup:

Actually, my licensing costs me $190 every 5 years, oh wait, now I also pay another $120 every 5 to TSA for my TWIC card as well. Not too bad, I give up half a day's pay every 5 years to make a living.
 
Actually, my licensing costs me $190 every 5 years, oh wait, now I also pay another $120 every 5 to TSA for my TWIC card as well. Not too bad, I give up half a day's pay every 5 years to make a living.

I was including everything from entry level, getting sea time, on up to where you are now.
 
I worked in pricing strategy for a dfw based major and am happy to share insights in to the process & theories behind airline revenue management.
Basics: about 100 people add 3% revenue vs. static pricing on a perishable product. Flights are split between local and flow bid priices which esscalate as demand increases. Segment the market with fare rules (AP), Fleece the locals and fill with domestic flow. International connecting traffic is often lowest yield. If they wanted to, airlines could sell each seat at the demand curve, instead revenue is maximized by setting prices higher. On competitive routes, sell multi leg itineraries much cheaper vs hub direct flights close to departure- this bends the booking curve and allows the pick up,of higher yield traffic. That strategy, developed by usair saved their company while utilizing non competitive hubs with little originating traffic.
Regional service to places like EWN is entirely based on the idea that the supply is restricted and people will pay b/c they have to.
 
I worked in pricing strategy for a dfw based major and am happy to share insights in to the process & theories behind airline revenue management.
Basics: about 100 people add 3% revenue vs. static pricing on a perishable product. Flights are split between local and flow bid priices which esscalate as demand increases. Segment the market with fare rules (AP), Fleece the locals and fill with domestic flow. International connecting traffic is often lowest yield. If they wanted to, airlines could sell each seat at the demand curve, instead revenue is maximized by setting prices higher. On competitive routes, sell multi leg itineraries much cheaper vs hub direct flights close to departure- this bends the booking curve and allows the pick up,of higher yield traffic. That strategy, developed by usair saved their company while utilizing non competitive hubs with little originating traffic.
Regional service to places like EWN is entirely based on the idea that the supply is restricted and people will pay b/c they have to.


In English, please?


It sounds like it might be interesting information, but I can't be sure.
 
I don't typically buy through the Internet, I use GMT and they book me Seaman's tickets which gets me two checked bags and two carry ons as well as no-fee rescheduling.

How does this work?
 
I just wish all airlines had pricing models like Southwest. I'm trying to book a ticket to KRAP (where SW doesn't fly) and I really would like to have the chance to pay a bit extra for the ability to have somewhat flexible dates. But no, I can't do that with Delta and United. Sigh.

And $600 for a round trip in coach when I got $600 round trip first last month.
 
Thus is life in a de-regulated airline world. You want stability - bring back the regulation.

Why would I want that ? I can buy tickets for less than what it costs me to drive, unless I fly United the staff is usually friendly and I haven't gotten stuck for something other than weather in years.
 
I just booked 2 round trip tickets for January...ALA-JFK. Total cost roughly $1900

Then I looked at the breakdown -

Airfare - $140
Taxes + Fees = $1700

How does this work???
 
LHR charges crazy taxes. We had enough BA points to book a RT to Europe, but just buying the ticket on United was more competitive than using our "free" BA tickets that connected through London.

Ridiculous!
 
Copying and pasting from a website...let's see how this works.

If Paint were sold like Plane Tickets: Buying Paint from a Hardware Store

Customer:
Hi. How much is your paint?

Clerk:
We have regular quality for $12 a gallon and premium for $18. How many gallons would you like?

Customer:
Five gallons of regular quality, please.

Clerk:
Great. That will be $60 plus tax.

Buying Paint from an Airline:

Customer:
Hi, how much is your paint?

Clerk:
Well, sir, that all depends.

Customer:
Depends on what?

Clerk:
Actually, a lot of things.

Customer:
How about giving me an average price?

Clerk:
Wow, that's too hard a question. The lowest price is $9 a gallon, and we have 150 different prices up to $200 a gallon.

Customer:
What's the difference in the paint?

Clerk:
Oh, there isn't any difference; it's all the same paint.

Customer:
Well, then, I'd like some of that $9 paint.

Clerk:
Well, first I need to ask you a few questions. When do you intend to use it?

Customer:
I want to paint tomorrow, on my day off.

Clerk:
Sir, the paint for tomorrow is the $200 paint.

Customer:
What? When would I have to paint in order to get the $9 version?

Clerk:
That would be in three weeks, but you will also have to agree to start painting before Friday of that week and continue painting until at least Sunday.

Customer:
You've got to be kidding!

Clerk:
Sir, we don't kid around here. Of course, I'll have to check to see if we have any of that paint available before I can sell it to you.

Customer:
What do you mean check to see if you can sell it to me? You have shelves full of that stuff; I can see it right there.

Clerk:
Just because you can see it doesn't mean that we have it. It may be the same paint, but we sell only a certain number of gallons on any given weekend. Oh, and by the way, the price just went to $12.

Customer:
You mean the price went up while we were talking!

Clerk:
Yes, sir. You see, we change prices and rules thousands of times a day, and since you haven't actually walked out of the store with your paint yet, we just decided to change. Unless you want the same thing to happen again, I would suggest that you get on with your purchase. How many gallons do you want?

Customer:
I don't know exactly. Maybe five gallons. Maybe I should buy six gallons just to make sure I have enough.

Clerk:
Oh, no, sir, you can't do that. If you buy the paint and then don't use it, you will be liable for penalties and possible confiscation of the paint you already have.

Customer:
What?

Clerk:
That's right. We can sell you enough paint to do your kitchen, bathroom, hall and north bedroom, but if you stop painting before you do the bedroom, you will be in violation of our tariffs.

Customer:
But what does it matter to you whether I use all the paint? I already paid you for it!

Clerk:
Sir, there's no point in getting upset; that's just the way it is. We make plans based upon the idea that you will use all the paint, and when you don't, it just causes us all sorts of problems.

Customer:
This is crazy! I suppose something terrible will happen if I don't keep painting until after Saturday night!

Clerk:
Yes, sir, it will.

Customer:
Well, that does it! I'm going somewhere else to buy my paint.

Clerk:
That won't do you any good, sir. We all have the same rules. Thanks for painting with our airline.

Absolutely PRICELESS......:thumbsup:..

And true too....;)
 
I wanted to go from IAD to CLT on short notice once (and for some reason I couldn't fly myself, can't remember why). IAD-CLT cheapest fare as $1300. Yech. Well GSO isn't that much further away than CLT to my destination. IAD-GSO is $300. Better. Get this, it stops in CLT on the way. BWI-CLT was only $166, except it's only good on the first flight in the morning. Get to the airport bright and early, and they're overbooked and are offering a $250 voucher if I take a flight 90 minutes later. That was the flight I wanted to be on to begin with. I'd have done it for $166 (now they're giving me a credit to take it). Only thing is I'm out an hour of sleep.
 
I like using hipmunk.com
Second this. The CEO was ****ed about all the extra crap on expedia and priceline so he created his own that is as simple as it gets. Plus there's no ads!
 
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