Very Uncompetitive Pricing: PHL-IST (merged threads)
I fly PHL-IST at least once a year. I am going this year in late Feb. US best fare is $1,041. I really prefer to go out of PHL, but EWR is only 45 further for me. UA has a non-stop fare of $592. I priced US out of EWR to keep it "apples to apples", but EWR-IST on US is $1,313. I can get full US miles on the UA metal, so for $400+ I guess I'll go to EWR, just doesn't make sense when many other routes are so strictly matched with other airlines...
Programs: US Airways Gold Preferred, Hertz #1 Club Gold, Marriott Rewards Silver
Posts: 444
It is so amazingly simple to create a script that can bring back the fares of your competitors and do an analysis of your fares versus theirs. You can have all of this placed into an Excel sheet that shows where there are differences so that someone in revenue management can see where their fares aren't competitive and adjust accordingly.
Either they really do sell those more expensive flights, so they don't care to do this, although I don't know who is buying them then. Or they really just are that inept at IT and revenue management and just don't care.
Programs: US *G, Hilton Honors Gold, Hertz 5 Star, National Executive
Posts: 360
Since US does not fly to IST themselves and has to pay a partner for some segments, it may not be worth their while to compete with UA who flies totally on their own metal.
No?
Programs: US Airways Chairman's, Marriott Platinum, AMEX Platinum, Hertz PC, Travels too Much Platinum
Posts: 1,849
$592 is a really low transatlantic fare given the current fuel cost environment, let alone all the way to IST. I'd jump on that. Places like CDG are much more expensive around the same time.
For comparison pricing, I would look at carriers that actually operate to IST then at those that codeshare, rather than the other way around. Codeshares can be cheaper, but I've found it more likely that the web site of the operating carrier is likely to yield lower fares.
US may well have made the decision not to compete on this route because it can do much better selling the TATL for other more profitable routes. Additionally, while some people might travel PHL-EWR to catch a cheaper flight, most would not.
Last week, I saw PHL-LHR (which was $850 on US) for $535 on VS. And guess who the flight was operated by? US. Admittedly, it was an N fare which only earns 50% - but still.
It's a new route for UA. I believe they started running it early in fall '11. The prices were around 550 then as well. They are probably keeping the price down on that flight for promotional purposes.
It is so amazingly simple to create a script that can bring back the fares of your competitors and do an analysis of your fares versus theirs. You can have all of this placed into an Excel sheet that shows where there are differences so that someone in revenue management can see where their fares aren't competitive and adjust accordingly.
Either they really do sell those more expensive flights, so they don't care to do this, although I don't know who is buying them then. Or they really just are that inept at IT and revenue management and just don't care.
Revenue management is way more complex than a spreadsheet. Its not at all an "amazingly simple" process.
Did it ever occur to you that since its not US operating the flight into IST, that the higher fare is reflective of the cost US has to pay its partner for the flight into IST??
Last week, I saw PHL-LHR (which was $850 on US) for $535 on VS. And guess who the flight was operated by? US. Admittedly, it was an N fare which only earns 50% - but still.
Wouldn't it be a 100% earner?
Quote:
Codeshare flights with Virgin Atlantic flight numbers but operated by another airline will accrue miles based on the operating carrier’s agreement with US Airways.
Programs: US Airways Gold Preferred, Hertz #1 Club Gold, Marriott Rewards Silver
Posts: 444
Quote:
Originally Posted by whytravelsomuch
Revenue management is way more complex than a spreadsheet. Its not at all an "amazingly simple" process.
Did it ever occur to you that since its not US operating the flight into IST, that the higher fare is reflective of the cost US has to pay its partner for the flight into IST??
For what I was talking about, it wasn't specific to this route. There are plenty of routes that are not code-shares where US isn't price competitive. Sometimes, they eventually match competitor's fares after a month or two, but they aren't very quick about it many times.
I'd say it probably does cost them business, as for most travelers (business and leisure), price is the bottom line. Schedule is the other major driving point for many travelers, but even when those are close to being equal, sometimes the pricing just makes no sense.
The flight is sold as Virgin but operated by US, i.e. it's a codeshare flight not operated by Virgin but by Virgin's codeshare partner. The note says mileage for N fares on Virgin codeshares is per the operating carrier's agreement with US. So a US operated flight sold as Virgin would give miles based on US' agreement with US or 100%.
I think where things get confused is that US doesn't have an agreement with US. I would read the note as saying that a flight sold as a US codeshare partner's flight (Virgin in this case) but operated by a third carrier (XYZ Airlines) gives miles based on the third carrier's agreement with US. Otherwise every US flight sold as another carrier's flight number would earn 100% mileage even though the codeshare partner might pay 50% or even 0%.
That's great. So in this particular instance (there was a lot of availability PHL-LHR this year), you can save about $300 by ticketing through VA and still get 100% mileage. Do elites still get their elite bonus too? I wonder if CPs can apply certs to this ticket? (Or is that pushing it? )
Admittedly, it was an N fare which only earns 50% - but still.
