justhere

Wouldn't that be true for just about any commodity in the free market? For-profit businesses generally charge whatever they can that yields the best profit. Not sure if I missed your point but the point I was making was that the airlines don't charge the change/refund fees because of what the direct cost is to actually make the change or cancellation in their computer. They charge it to deter certain behaviors as well as increase and protect their revenue.

pinniped

As long as airlines are very clear about the rules around each type, I think this could be a good thing for passengers. I've long wondered why there were generally only two sets of rules: Y/B fares with total flexibility and then everything else with extraordinarily high change fees.

As an example, I think the way AA does it is pretty clear and fair to the customer. You see the options and the rules clearly on the first page of search options after you enter the route/dates. (Not that I've ever bought any of the middle-ground products myself...)

Superguy

I think having "middle ground" options is a good thing. It can increase revenue/profit where it might not otherwise occur.

Just an example from my travel patterns. I fly on Y/B fares internationally because I need the flexibility and my company will only pay for economy. Needless to say, I don't like the idea of flying in Y on long haul trips, so my company allows me to buy the difference up to business, but I still need the ticket to be refundable. Buying up to a C fare was prohibitive. It was often over $10k for a fully refundable ticket. As I don't have that kind of cash, the flexible middle ground was a godsend. I could typically pay $500-800 more and get the flexibility to change or refund the ticket if needed for a fee (usually around $400-500). I just have to eat the fee if something happens. That's a risk I willingly assume for a better travel experience.

It's a win/win all around. I get what I need, with a few strings attached. The airline gets some extra revenue, and still gets more than a non-refundable discount premium ticket.

Sure you have to read the rules to make sure you know what you're buying, but people should be glad they exist. More options is a good thing.

CDKing

The new distribution model. It allows for more customized fare offerings. Fares will be individualized by things such as income, where you live, job classification, etc . Well they say you will still be able to shop anonymously but you wont be getting all available fares if you don't opt-in.

Superguy

Sounds Big Brother-esque. So if I have a good paying job with an income, I can expect to pay more?

pinniped

Since this thread is the first I've heard of it, I googled it.

So far, there doesn't seem to be much nonpartisan opinion out there about it. You can read the whole resolution, the press releases from the IATA talking about how great it is, and press releases from travel agency groups talking about how awful it is. Perhaps it's still too technical and implementation too nebulous to attract the attention of large, mainstream newspapers.

One of the key fears on the TA side is that airlines could require customers to give up a *lot* of personal information just to get a fare quote. Even though the XML standard itself has been green-lit, I suspect that US and EU regulators would have a say about if this fear began to materialize. (Perhaps EU more than US...) As much as the EU cares about online privacy, I can't imagine them allowing an airline to force a passenger to reveal marital status in order to genuinely see all available fares.

Hard to say whether the resolution will be good or bad for consumers yet. If it allows all of the potential garbage fees to be viewable more transparently when doing a generic Orbitz search, that could be a good thing. But I instinctively don't trust the airlines or their industry group, so I have to admit I'm skeptical.

pinniped

Conspiracy theorists would say you're already doing that. Travel portals serving up higher hotel rates based on the type of device (or OS, or browser, etc.) you're using to connect to the site, for example. Numerous complaints here that rental car sites serve up higher rates when you're logged in as a elite member vs. when you aren't. (Although I think a lot of these have non-malicious explanations.)

Superguy

I usually check both with and without creds and IME, I haven't experienced that.

Not saying that it doesn't happen, just that I haven't experienced it. It wouldn't surprise me to hear that airlines are inflating the fares a little bit if you're a top tier vs a kettle, though, as they're more likely to pay a little more to remain loyal.

RTW1

Most of these conspiracy theories are baseless nonsence anyway... The airlines don't control a substantial part of the channels through which fares are offered so this won't work. It might work if they would give you a discount when you are willing to book direct and provide more data than you do now. But really, where's the benefit in that.

And there's also something as competition for most routes so it would have to be in cooperation to be effective. Not going to happen anytime soon.

They are constantly looking for ways to improve revenue management, but not like this.

pinniped

Indeed...it hasn't happened to me either, and I usually start most travel searches with a generic travel portal search (just to understand the whole market), even if I already have an idea of which hotel/air/car I want to book.