America West FlightFund (Discontinued Program) - Why Doesn't HP Match WN




View Full Version : Why Doesn't HP Match WN


afrugal1
Jul 6, 03, 5:24 pm
Maybe a dumb question, but here goes. Heading to PHX for NASCAR races in November. Bought an HP ticket for SFO-PHX at a darn high price MANY months ago. WN just opened their calendar to the applicable dates. HP's fare from OAK-PHX [same dates and times] is 33% higher while HP's fare from SFO-PHX is an eye-popping 70% higher. What gives?


Centurion
Jul 6, 03, 5:46 pm
During the last HP/AWA conference call with wall street they specificaly stated they are not going to match sale fares with the hope and thought they can "extract" (my quote) higher fares from the customers.

afrugal1
Jul 6, 03, 5:52 pm
Thank you, Centurion. I guess everything has a price including paying in advance for a ticket just to be sure that it is there during a crowded weekend like NASCAR. In the past, HP has reduced fares and the difference was available in voucher form. Live and learn.


Centurion
Jul 6, 03, 6:07 pm
I think HP is making a mistake no matching the competion including the paltry web bonus booking fare offered by HP of 500 miles.

afrugal1
Jul 6, 03, 6:29 pm
Well stated. I like HP, but [without sounding too bitter] not to the tune of an extra 70%!

sanFF
Jul 6, 03, 9:59 pm
I too was a loyal HP flyer up until 1997 when I took my last HP flight on a great fare
$96 RT from SAN to ABQ. SW at the time was
$210!! Well then came double credits and
have not flown HP since. Back in those days you earned 750 miles per flight on HP.
I do miss them but my wallet is much happier.

Centurion
Aug 9, 03, 11:48 pm
***********UPDATE************
Fare matching is back

AmWest cuts fares for fall travel
By John Yantis, Tribune
America West Airlines has returned to the rock-bottom fares it said weren't profitable during the busy summer travel season.
This week the company announced one-way fares from $29 to $99. The sale was a departure from its recent strategy and came about two weeks after the Tempe-based carrier posted its first positive earnings since 2000.

“We're doing this to best maximize our revenue during the off-peak times,” said Amber Huele, company spokeswoman. “That's our strategy.”

In June, America West CEO Doug Parker said the company would not match fare sales on 42 of 92 days during the summer travel season. “On 42 days, you will find that on certain markets, depending on whose running a sale or what they're doing in certain regions, we're going to be uncompetitive,” he said. “We're going to do that because we know that at the end, we're going to end up with higher revenues by not matching those ridiculously low fares and by holding off and selling better fares closer in. We feel quite good about this strategy. It's somewhat inconsistent with the low-fare airline strategy . . . but there's a point at which low fare becomes tremendously unprofitable.”

The thinking was that airlines who offered low-dollar seats would sell out and travelers still wanting to take a vacation would select America West because it argues it has low everyday fares.

But because fall travel drops off, the airline decided Tuesday to offer the inexpensive fares, Huele said. Tickets must be purchased by Thursday, Aug. 28. They are available for travel from Tuesday, Aug. 19 through Monday, Nov. 24. A 14-day advance purchase and one-night stay are required and there are 21 days the fares are not available.

Southwest and Jet Blue, America West's stiffest competitors, and Northwest Airlines also offered cheap fares this week.

“Generally after school starts and after labor day, it is typically a slower travel period so we are definitely looking at ways to make travel very attractive so people might take trips that they hadn't otherwise intended to take, some quick getaways,” said Melanie Jones, Southwest spokeswoman.

Terry Trippler, an aviation expert with cheapseats.com, said fare sales are common this time of year, but he doesn't expect “network” carriers, the nation's largest six airlines, to have big ones.

“What America West did was unusual, but it was a positioning factor,” he said, adding the airline's decision to change its fare structure last year has resulted in it becoming a low-fare, low-cost airline that rivals with the likes of Southwest, Jet Blue, Air Trans and ATA.

“The network carriers don't pay attention to America West anymore, but it's not because they don't like them,” he said. “It's because they can't compete. We will see the Jet Blues, the Southwests and the America Wests do little skirmishes here and there and that's what's going on right now.”

Large Airlines are filled to record levels, partly because there are fewer flights, Trippler said. But they will likely skip having fire fare sales because their yield, the amount the airline makes on each seat it sells, is down.

“They have finally gotten the message ‘You're a high cost airline, you can't give away your seats,” he said. “They're finally getting the message that it's just not a good idea to sell something at a $50 loss per person and try to make it up on volume. It just doesn't cut it.”

Reports this week showed traffic on several major U.S. airlines was down in July from a year earlier while traffic on low fare carriers was generally better.

afrugal1
Aug 10, 03, 9:07 am
Thanks, Centurion! I shall keep an eye out for price changes relevant to my three (3) current HP reservations [SMF-LAS, SFO-PHX and OAK-EWR].

TransWorldOne
Aug 10, 03, 12:09 pm
>>SFO-PHX<<

Fares in this market have been outrageous since Southwest exited SFO. My current preferred routing to the Bay Area is Southwest PHX-SNA and Alaska SNA-OAK on a seperate ticket.

afrugal1
Aug 10, 03, 5:20 pm
So true. SFO-PHX [11/01/03-11/03/03 for NASCAR] is $226...before fees and taxes. Similar itinerary OAK-PHX nets out to a bit more than $150.



SEO by vBSEO 3.2.0