Seems pretty clear that the answer is Yes, they do practice price discrimination by geography. Why do they do this? Doppy pointed out that there cold be function differences in the cost of some customers. Even if that's not the case, if you have multiple market segments with different demand elasticities, this is profitable.

I don't believe this is anything too uncommon in the travel industry, however.

As an LA resident, I can get into Disneyland cheaper than someone without a Southern California zip code. Hawaiians can get kamaaina discounts at hotels and tourist attractions there. I even got a discount in Waikiki for being American.

Price discrimination can also work in favor of the foreigners. Japanese residents can't get Japan Rail passes, but those overseas can. I think some Eurail passes have similar pricing characteristics.

cnk