web Musings of The Global Traveller

Thursday, August 13, 2009

Sale inertia & screwy pricing

On some routes I fly regularly there have been so many sales this year that I no longer pounce on fares which just a year ago I'd consider a fantastic bargain. I'm sure I'm not alone and that can't be good for the airlines involved.

Meanwhile on other routes with little or no competition I've noticed some sneaky tricks. The base fares have been going up about 20% a year and even with low loads this year have still been climbing quickly. Every now and then there is a sale to promote a big discount. The sale fare is similar or higher than the base fare before the hikes. The airlines involved are taking advantage of monopoly or duopoly positions whilst appearing to offer the same level of discounting on all routes.

As a consequence there are some wierd pricing anomalies that are exacerbated during the many sales. At the start of the year I expected to be taking advantage, but so far I haven't (too much).

1 comment:

Steamboat Lion said...

Like Qantas promoting 2 for 1 business class fares from US to Australia that still cost 14K when you can get a business class fares with Air New Zealand, Delta or V Australia for under's easy to wow the market with your profitability when for years on your best route the only competition you have is crap like United. Now that the game has changed Qantas can get their heads around it.