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Can someone tell me how airlines set their prices?

Posted on 1/14/16 at 3:09 pm
Posted by WG_Dawg
Hoover
Member since Jun 2004
86599 posts
Posted on 1/14/16 at 3:09 pm
Some people and I are looking at preliminary plans of taking a trip this year. So I go to some flight websites and a nonstop flight from Atlanta is currently like $450. No thanks. However, a buddy who would be coming from Charlotte said that his flight (on the same dates, to the same place) had a layover in Atlanta and it was only $200!

Wtf? What is the rationale behind this? His trip will involve multiple flights, more gas, more time, and will layover in our city yet his is half the price as ours. I don't get it.
Posted by LNCHBOX
70448
Member since Jun 2009
84464 posts
Posted on 1/14/16 at 3:10 pm to
Supply and demand.
Posted by TheAlmightySmash
New Orleans
Member since Jun 2014
5481 posts
Posted on 1/14/16 at 3:11 pm to
Factors: Gas prices, demand/ time of year
Posted by Topwater Trout
Red Stick
Member since Oct 2010
67601 posts
Posted on 1/14/16 at 3:11 pm to
quote:

a nonstop flight from Atlanta is currently like $450.


maybe this is the reason?
Posted by DCtiger1
Panama City Beach
Member since Jul 2009
8852 posts
Posted on 1/14/16 at 3:11 pm to
Skiplagged.com

Posted by Webbie
Member since Jan 2016
57 posts
Posted on 1/14/16 at 3:12 pm to
It's based on race, sex, and religion.
Posted by yellowfin
Coastal Bar
Member since May 2006
97792 posts
Posted on 1/14/16 at 3:12 pm to
price a flight from Atlanta to Charlotte back to Atlanta then to your final destination if you really want to save money
Posted by CuseTiger
On the road
Member since Jul 2013
8262 posts
Posted on 1/14/16 at 3:13 pm to
If you're in a hub, you're likely going to pay more unless there are multiple airlines competing against one another. Supply and demand, you're hub captive and they know it. That's why new orleans usually has decent priced flights compared to ATL EWR or SFO let's use as examples. Where are you going/when and I might be able to help you find a cheaper flight
Posted by Red Stick Tigress
Tiger Stadium
Member since Nov 2005
17892 posts
Posted on 1/14/16 at 3:51 pm to
I just helped a friend with a flight from LAX to New Orleans.

I found him a one way $122 fare and booked the flight from LAX to Houston Hobby. This flight stopped in New Orleans before backtracking to Houston.

The same flight with just the LAX to MSY portion was close to $200.

Go figure that one out.

Posted by Agforlife
Somewhere in the Brazos Valley
Member since Nov 2012
20102 posts
Posted on 1/14/16 at 3:53 pm to
They charge as much as they can get away with for the convenience of a non stop, just like a convenience store charges you more a milk.
Posted by TheWiz
Third World, LA
Member since Aug 2007
11694 posts
Posted on 1/14/16 at 3:53 pm to
Southwest is running some killer promotions between certain hubs, and if you book 14 days in advance.
Posted by ballscaster
Member since Jun 2013
26861 posts
Posted on 1/14/16 at 3:59 pm to
Phase 1: Collect Underpants
Phase 3: Profit
Posted by Teddy Ruxpin
Member since Oct 2006
39642 posts
Posted on 1/14/16 at 4:33 pm to
OP, if you're going to do the hidden city ticketing don't check a bag.

This may have been obvious but people sometimes miss the details.
This post was edited on 1/14/16 at 4:34 pm
Posted by cave canem
pullarius dominus
Member since Oct 2012
12186 posts
Posted on 1/15/16 at 12:27 am to
quote:

Some people and I are looking at preliminary plans of taking a trip this year. So I go to some flight websites and a nonstop flight from Atlanta is currently like $450. No thanks. However, a buddy who would be coming from Charlotte said that his flight (on the same dates, to the same place) had a layover in Atlanta and it was only $200!

Wtf? What is the rationale behind this? His trip will involve multiple flights, more gas, more time, and will layover in our city yet his is half the price as ours. I don't get it.


just to be clear, you are asking why a high demand ticket is expensive?

I mean how many people could want to travel from ATL to MEM for a GA vs. OM game. They have X number of seats and want the maximum value they can get, sort of like every business on earth.
Posted by GeorgeTheGreek
Sparta, Greece
Member since Mar 2008
66555 posts
Posted on 1/15/16 at 12:36 am to
Collusion
Posted by Pectus
Internet
Member since Apr 2010
67302 posts
Posted on 1/15/16 at 6:15 am to
I have a related question.

Remember how airlines added a baggage fee to anything you wouldn't carry on? $20 a bag?

That was from the high gas prices. How come that fee has never gone away?

Has it now turned into a convenience tax?
Posted by Tortious
ATX
Member since Nov 2010
5151 posts
Posted on 1/15/16 at 6:42 am to
It basically is available seats per mile divided by costs per available seats per mile. So if a plane has 30 seats and is traveling 100 miles that is 3,000 available seats per mile. If it were a 1000 that is 30,000. That number is divided by the costs per mile. The lower the ratio the closer to break even for the flight and that ratio drives the price per available seats mile.

Using these formulas it is easy to see why non-stops can be more expensive. Also, it is the aircrafts mileage that matters not yours. So one plane who flies coast to coast with no stops should have a higher price per mile than one who has 5 stops on the same route because there is a higher chance of selling more tickets (people get off and on and not just one fatass in the same seat the entire time.) Hub flying is usually cheaper too because of the shared savings of gates, ground crews etc. Of course, also into this goes demand factors.
This post was edited on 1/15/16 at 6:45 am
Posted by EastNastySwag
Member since Dec 2014
5978 posts
Posted on 1/15/16 at 7:44 am to
I hate air travel. Find parking at airport just to get raped on daily fees, be there two hours before flight just to get to the gate with 20 mins to spare, pay baggage fee, stand in line for anal probing by TSA, wait forever to get your seat because everyone and their mother are shoving bags in the overhead bins, find out your seat just lost an inch of leg room since the latest refurbishment of plane, take forever to debark plane because we are too busy clearing out the overhead bins, wait forever at baggage claim, walk outside of terminal and walk through a haze of smoke felling like you have just smoked 2 packs, find your piece of shite luxury rental car that is really a Dodge Dart.....

/rant

Give me the good ol Interstate instead. My rule is if it takes more than 10 hours to drive, I fly.
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