Sticker shock for USA domestic travel this spring
#61
Join Date: Nov 2005
Location: Southwest
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I'm a speaker so my business travel includes things that often require checking at least a box or a bag. If I want to ship ahead, I can, but I've had shipments lost for important conferences even when I shipped with all the requisite tracking mechanisms. And it's a wash on the cost to ship vs the cost to check a bag.
And finally, some of my business travel includes more than one business meeting or speaking gig. So I'm not flying into the airport, going to a meeting and checking in to a hotel for one night. I might fly into city A, do a conference; drive to city B and do one their the next day; then meet with clients at another location in city B. So I need a car. It also allows me to keep some of my things in the car rather than hauling them back and forth to the car or shuttle/taxi for each meeting.
For me - as I said - If the flight and travel time will be 4-5 hours, it makes moire sense to drive.
#62
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JetBlue seems to slowly built international relationships, with JAL and EK for instance. Only a matter of time to see B6 offer reciprocal benefits on many more foreign carriers.
#63
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#64
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JetBlue is a trunk / mainstream presence in the Northeast but has very limited impact elsewhere. VX remains a fringe curiosity with no real market impact -- just a sort of cult fan base -- after seven years of (until recently unprofitable) operations.
#65
Join Date: Mar 2007
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The problem with air travel is that it is not a true commodity. People don't decide on, or need, a trip and then simply take whatever lowest price they can find. That's how the low price argument works, but the fact is that the cost of the airfare plays a part, and in many cases, a huge part, of the decision of whether or not to take that trip in the first place. And for how long, and how much focus you are going to put on the value of the dollar you are spending to fly.
This is certainly true for me as a leisure traveler. My family and I look at today's high prices and opt out of taking trips we would have taken at the prevailing prices of 2 years ago.
This is true for business travel, too, but business is less demand elastic.
#66
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You mean that the demand leisure travel is highly elastic. As prices rise and/or value deteriorates, demand decreases. Would-be travelers either substitute goods (they drive instead of fly, as discussed elsewhere in this thread) or they purchase fewer trips.
This is certainly true for me as a leisure traveler. My family and I look at today's high prices and opt out of taking trips we would have taken at the prevailing prices of 2 years ago.
This is certainly true for me as a leisure traveler. My family and I look at today's high prices and opt out of taking trips we would have taken at the prevailing prices of 2 years ago.
If I want to take a trip, I usually start tracking airfare for my preferred itinerary a minimum 6 months out. If the airfare reaches the "best possible price" for that particular itinerary, I buy the airfare.
Sure, I would love to travel on <5 cpm to Las Vegas or Europe but that ain't gonna happen. My spend generally is around 10 cpm.
#67
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You mean that the demand leisure travel is highly elastic. As prices rise and/or value deteriorates, demand decreases. Would-be travelers either substitute goods (they drive instead of fly, as discussed elsewhere in this thread) or they purchase fewer trips.
This is certainly true for me as a leisure traveler. My family and I look at today's high prices and opt out of taking trips we would have taken at the prevailing prices of 2 years ago.
This is true for business travel, too, but business is less demand elastic.
This is certainly true for me as a leisure traveler. My family and I look at today's high prices and opt out of taking trips we would have taken at the prevailing prices of 2 years ago.
This is true for business travel, too, but business is less demand elastic.
I guess our experience with airline tickets are low season, as we purchased cheap airfare tickets prior to getting into the miles game. We are somewhat flexible around the holidays, and seem to luck out on the bargain point redemptions. Otherwise, we would take more vehicle trips. We don't take out of province vehicle trips anymore, but I could see vehicle trips as a legitimate substitute, if the hotel loyalty programs we are involved in have sufficient coverage.
#68
Join Date: Sep 2007
Location: Central Mass
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There is more to travel though than vacations. Sometimes it is visiting relatives, or spending the holiday with family out of state. For that matter there is also travel to attend an event or for personal enrichment/education. And in the long run, it also makes a difference for a young adult in their decision about how far away to move from their home.
So in fact air travel actually has impacts outside of just the travel itself. This is something I don't think is or was adequately understood when this merger was allowed.
So in fact air travel actually has impacts outside of just the travel itself. This is something I don't think is or was adequately understood when this merger was allowed.
#69
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As for local transit, I wish more airports had it. I love this option where possible - DCA, ORD, MDW, etc. - although usually for the convenience of not having to park the rental car downtown, no so much *beating* the rental car to my hotel. Although that can happen as well...kind of fun riding the CTA into Chicago at rush hour, passing all of the cars...
I guess that gets back to the AA/DL question for AS. How is an AS elite treated when flying those airlines? Just like any other nonelite?
#70
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There is more to travel though than vacations. Sometimes it is visiting relatives, or spending the holiday with family out of state. For that matter there is also travel to attend an event or for personal enrichment/education. And in the long run, it also makes a difference for a young adult in their decision about how far away to move from their home.
So in fact air travel actually has impacts outside of just the travel itself. This is something I don't think is or was adequately understood when this merger was allowed.
So in fact air travel actually has impacts outside of just the travel itself. This is something I don't think is or was adequately understood when this merger was allowed.
It's already debatable whether to bother flying on trips < 500 miles in the US, given time, price, and hassle factor. As pricing and operational policies make things worse and all but "gotta-go" travel becomes debatable, the airlines will feel the squeeze and the pendulum will swing back.
#71
Join Date: Mar 2007
Location: SJC/SFO
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In the leisure market there is gotta-go travel (kids to college, funerals, etc.) and discretionary travel (vacations, getaways, etc.). Despite what some may think the latter represents indispensable income for all tiers of airlines, and the rolling cascade of policies that discourage discretionary travel -- higher prices, fewer frequencies, poor reliability and delays, security hassle, diluted FF programs for non-elites, etc. -- is counterproductive. It can't last.
Annual family vacations are important, too. As the costs go up we don't cancel our annual trip; instead we look for other ways to economize. For example, we travel to a closer and less exotic location, or stay at a 3-star hotel instead of a 4-star resort, or forgo a second, smaller vacation during the year.
The most discretionary trips are the quickly getaways that my wife and I like to take about once a month. We like to go somewhere <2 hours flight time for a weekend or long weekend. SFO-LAX/SAN/PHX/PDX/SEA/DEN. This is where we're most price sensitive. As costs rise from $150 roundtrip pp to $250pp to $400pp and beyond we won't take these casual trips. We'll reduce our frequency to 2-3/year, plan them further ahead of time, and stay longer per trip -- all of which reduces the business airlines get from us.
#72
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There is more to travel though than vacations. Sometimes it is visiting relatives, or spending the holiday with family out of state. For that matter there is also travel to attend an event or for personal enrichment/education. And in the long run, it also makes a difference for a young adult in their decision about how far away to move from their home.
So in fact air travel actually has impacts outside of just the travel itself. This is something I don't think is or was adequately understood when this merger was allowed.
So in fact air travel actually has impacts outside of just the travel itself. This is something I don't think is or was adequately understood when this merger was allowed.
Previous travel does not necessarily play into migration.
#73
Moderator: Manufactured Spending
Join Date: Jul 2011
Posts: 6,580
Those of us living in California would beg to differ with that. VX has definitely had an impact at SFO and LAX. They haven't had a nationwide impact, but they have definitely taken local market share from the other carriers, particularly UA.
#74
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The most discretionary trips are the quickly getaways that my wife and I like to take about once a month. We like to go somewhere <2 hours flight time for a weekend or long weekend. SFO-LAX/SAN/PHX/PDX/SEA/DEN. This is where we're most price sensitive. As costs rise from $150 roundtrip pp to $250pp to $400pp and beyond we won't take these casual trips. We'll reduce our frequency to 2-3/year, plan them further ahead of time, and stay longer per trip -- all of which reduces the business airlines get from us.
Also, I don't believe there are that many "ultra discretionary" travelers. Oh sure, there are lots of us here at Flyertalk, but the average American doesn't get that much vacation and doesn't take that many leisure trips. Let's face it: if you've got a week for vacation, and want to go somewhere, you don't need a $99 airfare. You'll pay more. Also, as noted, a lot of leisure travel isn't THAT discretionary: weddings, school, etc. These travelers are willing to pay more and if you restrict inventory, you can fill up planes with biz travelers and semi-discretionary leisure travelers. There's no need to "give away" tickets at ultra low prices.
#75
Moderator: Manufactured Spending
Join Date: Jul 2011
Posts: 6,580
My hunch is the airlines know they are losing these "ultra discretionary" leisure travelers and don't care. There's no money to be made at those fare levels. Better to restrict supply and force up fares for everybody, even if they lose some business from their most frequent leisure travelers.
Also, I don't believe there are that many "ultra discretionary" travelers. Oh sure, there are lots of us here at Flyertalk, but the average American doesn't get that much vacation and doesn't take that many leisure trips. Let's face it: if you've got a week for vacation, and want to go somewhere, you don't need a $99 airfare. You'll pay more. Also, as noted, a lot of leisure travel isn't THAT discretionary: weddings, school, etc. These travelers are willing to pay more and if you restrict inventory, you can fill up planes with biz travelers and semi-discretionary leisure travelers. There's no need to "give away" tickets at ultra low prices.
Also, I don't believe there are that many "ultra discretionary" travelers. Oh sure, there are lots of us here at Flyertalk, but the average American doesn't get that much vacation and doesn't take that many leisure trips. Let's face it: if you've got a week for vacation, and want to go somewhere, you don't need a $99 airfare. You'll pay more. Also, as noted, a lot of leisure travel isn't THAT discretionary: weddings, school, etc. These travelers are willing to pay more and if you restrict inventory, you can fill up planes with biz travelers and semi-discretionary leisure travelers. There's no need to "give away" tickets at ultra low prices.