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Why is airline pricing so stupid?
Posted on 6/15/19 at 8:00 pm
Posted on 6/15/19 at 8:00 pm
Looking at flights to Bozeman from MSY/BTR. Connecting flights could be Dallas/Denver/Salt Lake.
April 27, 2020 - May 6, 2020
MSY ->DFW -> BZN $352
Direct DFW -> BZN $671
(same flight as above)
Is MSY subsidizing these flights? Why is the pricing different?
April 27, 2020 - May 6, 2020
MSY ->DFW -> BZN $352
Direct DFW -> BZN $671
(same flight as above)
Is MSY subsidizing these flights? Why is the pricing different?
5
Posted on 6/15/19 at 8:06 pm to Wasp
quote:
Is MSY subsidizing these flights? Why is the pricing different?
Because American is the only airline that serves DFW-BZN direct.
There are no direct flights from MSY-BZN. So the consumer doesn’t care where they layover.
Posted on 6/15/19 at 8:21 pm to Golfer
So you're saying that they are milking the dallas market?
Posted on 6/15/19 at 8:25 pm to Wasp
Go price the SLC flight to Bozeman on Delta. Bet its higher as well for the same reason. They can charge more due being the only direct flight like AA out of DFW.
Posted on 6/15/19 at 8:26 pm to Wasp
Yeah, people will pay more for a nonstop flight. Supply and demand is how it works. If you want to fly BTR - DFW, you can sometimes find BTR - DFW - IAH for less, because American Airlines has to price Houston for less, because most people would prefer the nonstop BTR- IAH flight on United.
This is why people use Skiplagged
This is why people use Skiplagged
This post was edited on 6/15/19 at 8:27 pm
Posted on 6/15/19 at 8:33 pm to Wasp
quote:
So you're saying that they are milking the dallas market?
No. I’m saying that a direct flight is more desired. It will command higher prices one routes only served by one airline.
DFW/DAL-MSY is served by 3 airlines direct with some 20+ flights a day. Supply is high compared to BZN.
Posted on 6/17/19 at 1:57 pm to Golfer
quote:
Because American is the only airline that serves DFW-BZN direct.
There are no direct flights from MSY-BZN. So the consumer doesn’t care where they layover.
This isn't always the case though. European flights for example, its almost always cheaper to fly direct from the larger airport then to have a layover at the larger airport.
The airlines use complicated algorithms and monitor the markets. They over price when demand is high and drop it to make some deals. If OP were to check those prices again in 30 days, it could be the opposite.
Posted on 6/18/19 at 9:55 am to baldona
quote:
This isn't always the case though. European flights for example, its almost always cheaper to fly direct from the larger airport then to have a layover at the larger airport.
I'm curious what routes you've found this to routinely be true. Where the American hub airline is the only carrier on that international route.
This post was edited on 6/18/19 at 10:12 am
Posted on 6/18/19 at 9:55 am to baldona
You could find a connecting itinerary from Dallas for cheaper than the nonstop. As was said before, airlines will charge a premium for the nonstop. If you are flying from a hub, revenue management will also price up some nonstop itineraries in order to support connecting traffic. To use an example, they might jack up your price because they are holding seats for a guy flying SAV-DFW-BZN. The fare for that guy will be prorated among legs. His contribution to the DFW-BZN leg may be less than what you would have paid for the nonstop, but his system contribution is higher... what he paid for SAV-DFW is profitable and the airline needs that to support the SAV-DFW flight. If they didn't offer the guy an itinerary from SAV to BZN, they never would have gotten his dollars in the first place.
Generally nonstop O&D traffic is more profitable, but there are instances when connections are more valuable.
Generally nonstop O&D traffic is more profitable, but there are instances when connections are more valuable.
Posted on 6/18/19 at 10:45 am to Golfer
quote:
I'm curious what routes you've found this to routinely be true. Where the American hub airline is the only carrier on that international route.
I can't really speak as much for American. Mostly Delta.
I'm 4.5-6 hours between multiple hubs. Well not hubs as much as between airports with direct international flights. So I generally check the prices for connecting through there and for driving to the hub just out of curiosity mostly.
You are probably absolutely correct in general. But they run pricing specials certainly where it may be $400 out of the hub but $1200 to connect through the hub, and then I've had $500 specials to connect through the hub and the hub direct is the same or more.
For example just the other day United was running that special with flights our of ORD and Atlanta (not a United Hub I know) for $300 flights to Europe but if you took a connecting flight to Atl or ORD then it was back to normal $1200 rates. I didn't look, but some of the destinations certainly had direct flights from Atl on other airlines.
Isn't this the reason people have intentionally missed connections?
This post was edited on 6/18/19 at 10:49 am
Posted on 6/18/19 at 10:51 am to SM6
quote:
You could find a connecting itinerary from Dallas for cheaper than the nonstop. As was said before, airlines will charge a premium for the nonstop
Let's take European flights out of NYC, Boston, and the east coast as an example. They very routinely always have fantastic pricing for direct flights. You couldn't say fly out of NYC to Boston or DC for a cheaper flight.
I'm simply saying that in general you are correct, but the algorithms are not simple.
Posted on 6/18/19 at 12:33 pm to baldona
That is fair, but there is also a lot more competition on the trans-Atlantic trunk routes from those gateways. Multiple airlines offering service (AA, DL, BA, VS, UA, DY [Norwegian]) all fly from NYC to London, for example.
Agreed with you that it is not a one size fits all application.
Agreed with you that it is not a one size fits all application.
Posted on 6/18/19 at 12:34 pm to baldona
quote:
Isn't this the reason people have intentionally missed connections?
Yup, exactly. And airline rev management hates it so much that they will now cancel your FF benefits if they catch you doing it.
Posted on 6/18/19 at 12:50 pm to Wasp
American sucks. We went to Bozeman for New Years. LFT-DFW-BZN. Was supposed to leave LFT at 1pm...left at 5pm so we missed our connection in Dallas and had to sleep the night. Well they couldn't get us into BZN the next morning so they sent us to Billings 2 hours away.
Posted on 6/18/19 at 3:25 pm to Wasp
quote:
April 27, 2020 - May 6, 2020
MSY ->DFW -> BZN $352
OP you better book this ASAP. I go to Jackson Hole/ Yellowstone routinely. Its expensive as shite to fly out there.
Posted on 6/18/19 at 5:35 pm to Wasp
Do you need a checked bag?
Uber to DAL. Take cheap flight from DAL - MSY on Southwest.
Then get on MSY-DFW-BZN
On way home, when you land at DFW, just walk off the plane. Uber home.
Uber to DAL. Take cheap flight from DAL - MSY on Southwest.
Then get on MSY-DFW-BZN
On way home, when you land at DFW, just walk off the plane. Uber home.
Posted on 6/18/19 at 9:09 pm to Wasp
Airline pricing is wild.
Let’s say you want a direct from MSY to DFW. $400
What about MSY>DEN via stopover in DFW? $200
Could be half the cost. But don’t you dare try and book the MSY to DEN and just miss your connection. They will sue passengers now for taking advantage of their pricing.
Let’s say you want a direct from MSY to DFW. $400
What about MSY>DEN via stopover in DFW? $200
Could be half the cost. But don’t you dare try and book the MSY to DEN and just miss your connection. They will sue passengers now for taking advantage of their pricing.
Posted on 6/18/19 at 9:15 pm to jvargas
quote:
American sucks
shite happens man. Every airline has delays due to maintenance and weather. At least you weren’t on Spirit.
Posted on 6/20/19 at 2:13 pm to jcaz
quote:
shite happens man. Every airline has delays due to maintenance and weather.
True, but American's mechanics and ground staff unions are in the middle of a slowdown work action.
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