RCyyz

A friend was insisting to me that AC is very competitive on the YYZ-TLV route. I was curious, so here's what I found for a trip at the front of the bus:

AC - $3866
9W + LY - $1733
TK - $2487

I admit, even I was surprised at the price disparity. AC is basically twice as much as the lowest fare (that I could find) and over $1000 more than their *A "partner".

Wow.

24left

So, let's say that answer would be "companies price what they think the market will bear". Annoyingly, this is an oft-used phrase execs etc use when trying to explain why there is a huge price disparity on various products.

IIRC, there was a great uproar a couple of years back when people discovered a major U.S. retail chain was charging significantly more for the same items up here as down there - apparently enough to hint at suggestions of avoiding shopping at that retailer. The exec who responded was stupid enough to use that phrase, but ultimately, prices had to change or sales would drop.

Airline tickets are very different as there is a limited supply.

AC flies direct every day (or almost) to TLV. LY does not fly every day. Other carriers require connections. LO was offering fantastic prices for a long time on that route.

Some pax might be price sensitive, others may want AC due to the convenience of direct, or mileage earning or other. I think AC has a bit of a captive market on that route.

So yes, one can save a lot of money flying other airlines.

A more interesting find was looking at flights on AC YYZ-TLV and LAX-YYZ-TLV. Both in J. AC was charging much less from LAX, through YYZ to TLV than for those originating in YYZ. All in $CAD. I showed this to some colleagues and one laughed and said they could easily buy a ticket from YYZ to LAX and fly LAX-YYZ-TLV and still pay less than had they just flown from YYZ.

The same was found by other FTers for flights originating in the U.S. and connecting in YVR to Asia.

It is still the case when you see promos on sites like ExitFares, with originating points in places like RDU or CLE, or when the guys over at TPG or VFTW post deals with AC.

You all know more about ticket pricing dynamics than I do.

So, even now, if you wander over to this thread, you'll see far more competitive pricing on many routes with other airlines. As long as AC fills their flights on the routes they fly, they have no need to "match" others.

http://www.flyertalk.com/forum/premium-fare-deals-740/

P.S. Going through FRA is not always the best routing due to German pax landing fees or whatever they charge for those in transit.

capedreamer

Not sure 3 data points are enough to make the case that AC is overpriced.

TK has been offering aggressive sale fares for NA-EMEA flights in J for a while now. Not sure why, but if I can offer some completely baseless conjecture, perhaps the political instability in Turkey is affecting load factors.

As for 9W/LY, that also looks like a sale fare. At $3,800+, AC appears to be priced pretty much with the pack:

flybit

AC is always the last to figure out the competition is undercutting it. YYZ-JNB AC is always a few days behind catching up with fare sales.
I expect AC will match this or at least get close unless its a "fare Error" and I don't think it is.
Chuckle who would pay AC $2k more unless they worked for the govt.

margarita girl

Maybe to hit the $20K min spend for SE status?

monkai

Think of it as bonus AQD!

SparseFlyer

With the recent murders at IST and the military coup, I am not in a particular hurry to return to/transit through IST or on TK.

I don't think terrorist attacks should prevent us from doing things (and I have been to Paris soon after the first incident with the wife, and she went a second time after the second 'attack'), but when even the military is upside down and people are running around the airport airfields, well, yeah. Not especially motivated to go there.

Many other places to go.

Hope you enjoy Jet airways. Looking forward to a trip report.

jjclancy

YYZ-TLV on 9W/LY is an unusually low fare, ref
HURRY! Toronto To Tel Aviv For US$1,348/C$1,733 Round-Trip In Business Class!
Premium Fare Deals 9W/LY: YYZ-TLV $1265usd rt business ...

24left

These are the fares OP quoted

upgradesecret

and yet AC has little trouble filling their J cabin

24left

Correct. And when this discussion came up on the Asia routes, the same comment was noted.

karachi

Direct flights are usually more expensive - the better comparison would be AC vs El Al nonstop services.

TK has been aggressive with their fares for years. I've flown TK to KUL, BKK, CGK in J for under $4k a few times. also having been to IST over 20 times in the last few years, i feel quite safe. I've felt more threatened when some confederate flag Tshirt wearing bubba's tried to stare me down in Alabama.

Arcanum

I travel a lot overseas and I've had many Americans ask me "Aren't you scared going to [city/country X]?" When I tell them "No, it's much safer than visiting [insert various American cities here] with less crime and gun violence" they either get angry or quiet and thoughtful.

Jumper Jack

Well....
I think they are having trouble filling it...

bawm

Would you kindly share any references substantiating the above? I am interested.

Thanks,
bawm