Other Middle East and Africa Frequent Flyer Programs - Gulf Air Pricing Scheme?

Hi,

I have seen many threads of people looking for flights between LON and SYD/SIN/HKG and other far east Asian countries, and Gulf Air always seems to be the best value for money in J/F and often in Y. My question is: why? why are their prices so reasonable, their product isn't great, granted, but it's not awful either.

On sample dates, I saw GF LHR-SYD 3000GBP, whereas the next cheapest, EK was 4500GBP and BA was 4750GBP.

At this price, Gulf Air is not getting as much profit out of each ticket as it could / should, it's an interesting pricing approach but not overly effective.

What do you guys think?


Cheers

why are their prices so reasonable, their product isn't great, granted,
You've kind of answered your own question! Don't forget either that its 2 stops to SYD (BAH and SIN usually I think) whereas all the other carriers will offer 1 stop. It all about competitive advantage really. If GF didn't offer basement prices, then no-one would fly them as you point out the product isn't great, its 2 stops and there aren't many mileage partners etc. Also don't forget the extreme competition from Emirates (mainly) and the up and coming carriers Qatar and Etihad.

And a further general consideration is how much Middle Eastern airlines are supported by their oil-rich owners of course. ;)

And a further general consideration is how much Middle Eastern airlines are supported by their oil-rich owners of course. ;)

Oil-rich owners trying to diversify their economies by bringing people to their shores who may return as tourists. I've actually had a fare on Emirates become significantly cheaper if I worked in two days in DXB! (which I wanted to do anyway...)

The ploy worked, I thoroughly enjoyed my time in DXB and will go back sometime this year or next - though I doubt I'll be flying EK, since they don't give any miles in the programs where I need them, now that I've cashed out of DL.

I've also noticed that flights from Europe to DXB are pretty cheap milewise on EK. I think it works out so that two trips in Y to SYD give you a free flight form the UK to the UAE. Burning all those miles you got off that cheap fare to Oz will probably end up bringing the sheiks some more tourism revenue.

Gulf, Qatar and Etihad are all playing the same game. It's a smart system, but you need some serious cash to make it work.

In your case, I would check on the stopover if I were you. On a J or F ticket, it's even likely to be free.

BTW, I think SQ used to follow the same strategy in the 80s and early 90s before they made their way to the sort of status they enjoy now.

You've kind of answered your own question! Don't forget either that its 2 stops to SYD (BAH and SIN usually I think) whereas all the other carriers will offer 1 stop. It all about competitive advantage really. If GF didn't offer basement prices, then no-one would fly them as you point out the product isn't great, its 2 stops and there aren't many mileage partners etc. Also don't forget the extreme competition from Emirates (mainly) and the up and coming carriers Qatar and Etihad.

And a further general consideration is how much Middle Eastern airlines are supported by their oil-rich owners of course. ;)

Their product isn't GREAT but it's not BAD. Definately as good as OS, which seems to be the next cheapest at around $600USD more RT.

GF is a member of Asia Miles, and Asia Miles is a good enough program to keep me flying GF. Their redemption levels are rather generous even if they do not offer elite status.