Where is the logic SAS [zeroing out booking classes]
Oct 28, 2014, 2:53 pm
#16
Join Date: Sep 2005
Posts: 1,776
There are any number of reasons why SAS may decide not to "reduce" the price in the last hours before departure, especially for flights from one of its hubs.
If SAS acquired a reputation for dropping the price of SAS Go tickets in the final hours before departure, for any or ALL of their routes from one or ALL of their hubs, then it would eventually hurt their revenues, as their regular customers would learn to hold off buying tickets until the last available moment in the hopes of getting a "bargain" (this is deflationary economics in action - why buy now, when you believe the price is going to fall in the future?).
LOT are not based at CPH, so they can afford to be a little more aggressive on pricing - they don't dominate the market at CPH at all, so they can be more bullish.
If SAS acquired a reputation for dropping the price of SAS Go tickets in the final hours before departure, for any or ALL of their routes from one or ALL of their hubs, then it would eventually hurt their revenues, as their regular customers would learn to hold off buying tickets until the last available moment in the hopes of getting a "bargain" (this is deflationary economics in action - why buy now, when you believe the price is going to fall in the future?).
LOT are not based at CPH, so they can afford to be a little more aggressive on pricing - they don't dominate the market at CPH at all, so they can be more bullish.
Oct 28, 2014, 4:11 pm
#17
Join Date: Jan 2012
Location: Koala Lemur
Programs: SK EBD LTG (*G)
Posts: 2,447
Well made points on economic theory and not unusual at all to see this price strategy from the airline hub. Seems like ex-CPH flyers are willing to pay up for SAS flights to WAW since those flights are packed. Maybe they could even increase the price further? Sorry, I will be quiet now.
It looks to me that SK has hit the jackpot by opening late night/early morning rotation, which is excellent for WAW customers to make connections in CPH. Regardless of the discussion above, I think LOT must definitely sense a heat here, because a lot of the pax on SK flights from WAW connect long haul or intra Europe in CPH. So the game is not really, IMHO, about getting the pax from/to WAW/CPH cheaper, but the two airlines are actually competing for passengers traveling to to other cities (EWR, YYZ, ORD, ARN, BRU etc). I see these a lot on people boarding passes on SK flights from WAW. Now price differences and revenues on these connections are even harder for us to see.
Oct 28, 2014, 6:16 pm
#19
Join Date: Jan 2014
Programs: EBD, BAEC GGL/CCR, Alitalia AlataPlus, Club Carlson Gold, SPG Plat100, HHD
Posts: 654
I was on a few of those WAW-CPH earlier this year and the poor CRJ's are crammed every single time...
Strange they don't use A3XX instead, seeing as selling more tickets wouldn't be a problem.
Strange they don't use A3XX instead, seeing as selling more tickets wouldn't be a problem.
Oct 29, 2014, 2:30 am
#20
Join Date: Nov 2003
Location: CPH
Programs: SAS
Posts: 1,217
Ryanair has obviously spotted a market here. They have just announced that they will establish themself in CPH . WAW will become one of the new routes from end of March 2015.
Oct 29, 2014, 5:07 am
#21
Join Date: Sep 2005
Posts: 1,776
Obviously SAS has connection market one way and LOT the other way, but for point to point traffic Ryanair is going to bring this game to another level.
Oct 29, 2014, 5:43 am
#22
Join Date: Sep 2012
Location: AGH
Posts: 5,969
Oh my, so now for those sticking to corporate travel policy of cheapest option, it may not even by LOT but Ryanair CPH-WAW
Obviously SAS has connection market one way and LOT the other way, but for point to point traffic Ryanair is going to bring this game to another level.
Obviously SAS has connection market one way and LOT the other way, but for point to point traffic Ryanair is going to bring this game to another level.
So, either they accept that or have to live with me searching for a new employer and put up the stinky finger to them.
Oct 29, 2014, 9:41 am
#24
Join Date: Sep 2012
Location: AGH
Posts: 5,969
Modlin is not that convenient but I guess the casual tourist on budget won't care. The airport is round about one hour outside of central Warsaw while WAW is very convenient located in the heart of the city with perhaps 20 minute taxi ride into the center. For most business travelers it won't be too attractive I would think.
Oct 29, 2014, 9:45 am
#25
Join Date: Feb 2004
Posts: 1,935
FR will have one daily flight.
The FR routes from Copenhagen just announced seem to be geared towards the leisure travellers. Who in their right mind will fly to Luton when you really want to go to London?? Same for Warsaw and Milan
Oct 29, 2014, 4:44 pm
#27
Join Date: Jan 2012
Location: Koala Lemur
Programs: SK EBD LTG (*G)
Posts: 2,447
Norwegian does not operate WAW-CPH for years. But at the times they did SK and LO prices were marvellous. I remember taking returns for 500 kr in economy. So in general I welcome Ryanair to Warsaw. Yes, to WMI, far out of town, and lack of decent public transport, which means that I will never fly them (if only for these reasons). But I hope this will push economy prices down on SK and LO. It is unlikely to change more expensive buckets though that aim for business travellers. WMI is very inconvenient.
I am slightly worried that a 737 rotation to WMI can eat quite a bit into the volume though, so now my hopes for larger machines from SK are fading....
I am slightly worried that a 737 rotation to WMI can eat quite a bit into the volume though, so now my hopes for larger machines from SK are fading....
Nov 5, 2014, 12:48 pm
#28
Join Date: Nov 2004
Programs: EB*G, BT VIP
Posts: 770
I don't quite understand the preference of SK vs LO. For a short haul flying LO is very decent airline as long as the flight is on Embraer (737 are really c@ap but there are only 2 or 3 of them in a fleet). I would be (and actually very often do) flying LO without any problem. And certainly do not see where SK is better be it business or eco?
And for long haul LO product in C is way better. This 25% bonus on top for SK metal is hugely overrated unless you struggling to re-qualify.
And for long haul LO product in C is way better. This 25% bonus on top for SK metal is hugely overrated unless you struggling to re-qualify.
Nov 5, 2014, 3:02 pm
#29
Join Date: Sep 2012
Location: AGH
Posts: 5,969
I don't quite understand the preference of SK vs LO. For a short haul flying LO is very decent airline as long as the flight is on Embraer (737 are really c@ap but there are only 2 or 3 of them in a fleet). I would be (and actually very often do) flying LO without any problem. And certainly do not see where SK is better be it business or eco?
And for long haul LO product in C is way better. This 25% bonus on top for SK metal is hugely overrated unless you struggling to re-qualify.
And for long haul LO product in C is way better. This 25% bonus on top for SK metal is hugely overrated unless you struggling to re-qualify.
Nov 5, 2014, 6:15 pm
#30
Join Date: Nov 2004
Programs: EB*G, BT VIP
Posts: 770
I think prices are quite comparable but LO biz is 100% seat blocked next to you and never 12 rows of Plus!!!