How does this pricing matrix make sense???

Discussion in 'General Discussion | Travel' started by vickers, Aug 12, 2014.  |  Print Topic

  1. vickers

    vickers Gold Member

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    Ill be the first to admit I do not fully understand everything that goes into airline pricing... But this just blows my mind.... Im booking a trip to Detroit in September and we have to book via our Orbitz for Business portal. I figured Delta would be cheapeast as they are the only direct option.

    Not only are they more expensive, but their 1 stop option is cheaper than their direct......

    Not following that logic. Does this make sense to anyone? How is it cheaper for Delta for me to fly on 2 planes as opposed to 1?

    Prices are for round-trip.

    Rates.jpg
     
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  2. B1BomberVB

    B1BomberVB Silver Member

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    Delta is charging top $$ for the convenience of their nonstops, while the other airlines are offering discounts to get Pxx to tolerate a connection in Chicago, Wash. DC, Philly or wherever! Also, if DL's nonstops are kind of full that day, the price goes even higher!
    BTW, RU going to Downtown Detroit? If you're headed to Oakland County (Troy, Bloomfield Hills) or to Ann Arbor, also price flights to Flint MI (FNT.) Drive in on uncrowded rural freeways & pick up your rental car outside the airport door instead of riding a bus 2 miles to the rental-car lots!
     
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  3. dgreen12
    Original Member

    dgreen12 Silver Member

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    The other airlines could also be direct flights, unless they involve a change of planes.
     
  4. vickers

    vickers Gold Member

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    I'll be at Cobo Hall for ITS World Congress.
     
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  5. moongoddess

    moongoddess Silver Member

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    Airline pricing is mostly about extracting the maximum amount of money from each customer. Nonstop flights are faster and more convenient than flights involving a connection, so they are in high demand and the airline can therefore price them higher. And if you look at your chart, Delta has the most expensive of all the 1-connection options as well - I bet you're flying out of a Delta hub. If Delta dominates the airport, their connecting flights will be leaving at better (more popular) times, so again they can charge more.

    It's just like varying ticket prices by date of purchase. Unless someone gains or loses an enormous amount of weight the cost to fly them to a destination is fixed, so why are tickets purchased closer to the day of flight more expensive? The answer is that people who buy tickets well in advance are generally traveling for leisure, and they are very price sensitive. If the ticket price goes too high, they will change their plans. People booking at the last minute are more likely to be traveling for business or in response to an emergency situation. They HAVE to get to their destination, and will pay what it takes to do so. The airlines know this, and take full advantage of it.
     
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  6. daninstl

    daninstl Gold Member

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    I run into this all the time. I sometimes fly STL or MCI to the West Coast. There are a few AA and UA non-stops but the price will be over $1,000 many times when the flights that stop at a hub will be in the $400 to $600 range. I hate that I can't fly on those due to the cost and what few times I have they are packed, oversold on fairly large planes. You'd think the demand would lead to more non-stops but it doesn't. You pay for time savings I guess.
    Also can someone tell me why most of the last flights of the night from SFO area to the Midwest seem to all leave by about 5pm on Friday nights. Seems odd and I can't make a flight that early when I'm there on business?
     
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  7. vickers

    vickers Gold Member

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    Im flying out of HSV. Not really a Delta hub. We have 10 gates. :) But up until about a year ago, Delta was cheaper than the other carriers. That seems to have changed recently, and they are always the more expensive option.
     
  8. mattsteg
    Original Member

    mattsteg Gold Member

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    Airline pricing is not really based on cost, except at the overall "can our cost structure keep us in business" level. It is based on supply and demand. With only delta offering nonstop service, the supply is low, and demand higher. Thus they charge more.
     
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  9. Wandering Aramean
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    Wandering Aramean Gold Member

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    There are, generally speaking, very few scenarios in the airline world where this is true. Some people pay for the convenience of non-stop travel (note that non-stop and direct are different, though you conflate them in your post) and the airlines know this. They take advantage of that where possible.
     
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  10. NWAdinosaur

    NWAdinosaur Member

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    > only direct option

    > direct flights

    you mean nonstop flights don't you?
    direct flights stop somewhere and may even change equipment
    this is the case when the segments bear the same flight number
    in the case of equipment change it often applies to something international especially a heavy two- or four-holer that lands stateside and doesn't require the capacity for its continuation
    there are examples of sort-of direct flights (same number) that begin in one location and return to the same location after a stop
    was just on such a flight on DL from ONT-SLC which had begun SLC-ONT
     
    Last edited: Sep 8, 2014
  11. NWAdinosaur

    NWAdinosaur Member

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    only a coast-to-coast redeye makes sense letting you depart in the evening and arrive the next day
    leave SFO at 11p for DEN you'd arrive 2.30a not the most popular time
    if it made money you can bet someone would be flying that schedule
     
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  12. mattsteg
    Original Member

    mattsteg Gold Member

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    I'm not sure I've ever seen anyone call DEN part of the "midwest" before.

    There are plenty of redeyes from SFO and other west coast cities to the actual midwest. The last non-redeye departures are typically ~5, maybe 6 is the route can support the traffic without needing connections and often earlier, due to the "getting in at a terrible time" effect.
     
  13. daninstl

    daninstl Gold Member

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    I understand to some degree don't get me wrong but many business travelers would like to conclude a business trip meeting at say 3 or 4pm and get to the airport and leave at say 6 or 7pm (not 11pm). I know you would already be starting in the hole with say a 2 hour time zone loss but you might still be able to get to Dallas by midnight / 1am. It just seems like a better alternative to staying over on say a Friday night and traveling home on Saturday. I know I'm a minority on this but it just seems like there would be "some" traffic for this sort of schedule.
     
  14. Wandering Aramean
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    Wandering Aramean Gold Member

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    There likely is some. Just not enough to fill a plane as a reasonable yield to make it profitable to operate.
     
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