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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
86544 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
84257 posts
Posted on 1/14/16 at 3:10 pm to
Supply and demand.
Posted by TheAlmightySmash
New Orleans
Member since Jun 2014
5480 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
67591 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
8790 posts
Posted on 1/14/16 at 3:11 pm to
Skiplagged.com

Posted by mpar98
Baton Rouge
Member since Jan 2006
8034 posts
Posted on 1/14/16 at 3:11 pm to
I booked a vacation package last week for the family in June and I checked the same itinerary today and its $500 more than I paid last week...that is a good feeling.
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
97691 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 The Sad Banana
The gate is narrow.
Member since Jul 2008
89498 posts
Posted on 1/14/16 at 3:12 pm to
quote:

Skiplagged.com

This. Or fly Southwest if you can.
Posted by CoachDon
Louisville
Member since Sep 2014
12409 posts
Posted on 1/14/16 at 3:12 pm to
Yield management
Posted by CuseTiger
On the road
Member since Jul 2013
8222 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 WG_Dawg
Hoover
Member since Jun 2004
86544 posts
Posted on 1/14/16 at 3:16 pm to
quote:

Where are you going/when and I might be able to help you find a cheaper flight


It's not like some big grand trip and we JUST started talkign about it, but going to memphis in late september for the uga/ole miss game.

I'm going regardless, but I was planning on just driving to oxford with 2 other buddies. Then some other folks started talking today about flying to memphis so I started looking into it and then saw the weird prices.
Posted by CuseTiger
On the road
Member since Jul 2013
8222 posts
Posted on 1/14/16 at 3:27 pm to
Yeah delta's got you hub captured on ATL-MEM, southwest doesn't fly it. It's $365 on delta. If you did columbia to memphis it's $175 with a connection in atlanta

What you could do is buy a one-way ATL-MEM fare, then on the way back buy MEM-CAE (it's $86) and with the connection in ATL just get off the plane and go home. You can't do that with the ticket there because if you miss the first flight CAE-ATL-MEM they will cancel the rest of your flights
Posted by WG_Dawg
Hoover
Member since Jun 2004
86544 posts
Posted on 1/14/16 at 3:36 pm to
quote:

It's $365 on delta. If you did columbia to memphis it's $175 with a connection in atlanta


so obviously other people have thought about this before...but is there somethign that prevents me from just buying this ticket? So...buying a flight out of columbia (and obviously not being on it), then just getting on the connecting flight in ATL? When "the system" realizes I wasn't on the first flight am I bumped from the rest?

quote:

buy a one-way ATL-MEM fare, then on the way back buy MEM-CAE (it's $86) and with the connection in ATL just get off the plane and go home


you just blew my mind.


quote:

You can't do that with the ticket there because if you miss the first flight CAE-ATL-MEM they will cancel the rest of your flights


disregard my question above

ETA: Got damn I just checked a 1 way flight from atl to mem and just the 1 way is over $350!
This post was edited on 1/14/16 at 3:37 pm
Posted by CuseTiger
On the road
Member since Jul 2013
8222 posts
Posted on 1/14/16 at 3:45 pm to
Amazing isn't it? Not sure how the airlines get away with this type of pricing. You could buy a one-way atl-mem on american (through charlotte) for $185 the thursday or friday before the game.

The $86 MEM-ATL-CAE for the sunday after the game really isn't bad, I'd probably book it. While you're not supposed to do this with flying (called hidden city ticketing), if you're worried about it just don't put in your delta frequent flyer number. As long as you don't make a habit out of it you should be okay.
Posted by Golfer
Member since Nov 2005
75052 posts
Posted on 1/14/16 at 3:47 pm to
Dynamic pricing. CAE to MEM requires a stop somewhere, so there are multiple airlines competing for share.

No competition on ATL-MEM
Posted by WG_Dawg
Hoover
Member since Jun 2004
86544 posts
Posted on 1/14/16 at 3:47 pm to
quote:

You could buy a one-way atl-mem on american (through charlotte) for $185 the thursday or friday before the game.



yep, been playing around with this and saw that one. Might keep an eye on that.

quote:

The $86 MEM-ATL-CAE for the sunday after the game really isn't bad,


not at all, only issue is the time as I'd be getting back to my bed after midnight and I'd prefer not to take Monday off.


Is there a site or way to find flights sorted by layover? Like, could I find a trip from Atlanta to [anywhere] that lays over in memphis and do the same thing of just not taking the 2nd leg?
Posted by Golfer
Member since Nov 2005
75052 posts
Posted on 1/14/16 at 3:48 pm to
They won't care if you hidden city a route once or twice, but if you make a habit of it...and on a regular basis, you'll be flagged. No matter if you have your FF# in there or not.
Posted by Red Stick Tigress
Tiger Stadium
Member since Nov 2005
17853 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.
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