Re: destination versus routing pricing

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It's entirely due to competition.
I looked at several different city pairs.  I found that it was possible to have
a connecting flight that is cheaper than a non-stop.  Why?  My feeling is that
the airline wants to get that last seat filled (these were all discounted
fares) and if they have to fly a passenger out of his way to do it, they will.
Actually, this is a win-win situation.  The passenger gets a cheaper flight and
the airline gets addtional revenue.

David R

> Competition doesn't *force* the airlines to charge the same, but they
> do. (Unless of course, that without the business their seats would be
> empty.. which of course is not really competition forcing them, but
> rather inflexible labour contracts!... but we digress.)
>
> Airline 1: Boise, ID to Kansas City, MO - $100
>
> Why would Airline 2, who's never going to offer such a direct flight,
> match the price?  In many cases they do.
>
> Airline 2 is going to fly your through Denver (more miles = more
> expensive) but likely do it with more expensive operating costs (making
> it even MORE expensive.)
>
> It's a pissing war that unless Airline 2 offers a direct flight, or has
> labour costs so much lower than Airline 1 that dragging you through
> Denver makes it worth their while. Neither which I think is going to
> happen.
>
> Someone might argue that Airline 2 needs to only have a competitive
> price but can rely on the loyalty factor due to their FF program. But

> I'm guessing that loyalty on airlines will only sway for a small
> difference in price.
>
> Ugly..
>
> Matthew
>
>
>
>
> On Thursday, September 18, 2003, at 10:45  AM, damiross2@xxxxxxxxxxx
> wrote:
>
> > a) competition forces airlines to charge the same between 2 cities,
> > regardless
> > of routing
> >
> > b) Southwest does if you chose to fly between 2 cities on flights that
> > are not
> > shown in the timetable.  For example, if you want to fly from Oakland
> > to
> > Dallas, you would have to chose your own connecting flights as this
> > routing is
> > not shown in the timetable.
> >
> > David R
> >> Never understood this:
> >>
> >> Airlines can price their airfares based on either:
> >>
> >> a) Origin and Destination (regardless of routing)
> >> b) By actual legs.
> >>
> >> Why do most airlines choose a) ?
> >>
> >> Which ones follow b)?
> >>
> >> I get the "got-to-steal-those customers" angle, but why would any
> >> business (especially a capital and operating cost intensive one) want

> >> the revenue model to be completely disconnected from the cost
> >> structure?
> >>
> >> Matthew

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