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Why are domestic business fares so expensive?

Why are domestic business fares so expensive?

Old Aug 2, 19, 2:02 pm
  #1  
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Why are domestic business fares so expensive?

Why are AC business class fares so high for domestic? I've never been able to justify paying cash for J within Canada. Taking a brief look at the calendar, I'm consistently seeing roundtrip prices from $2k upwards to BC and AB, $1.3k to YWG, and $1,000 to YOW from YYZ. These prices are pretty insane compared to most of the domestic US city pairings and they have more premium transcon services too. Is the lack of competition in Canada that bad?
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Old Aug 2, 19, 2:54 pm
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I just bought YVR-YYZ one way for around 600. Narrow body, but still. The deals are there if you can search.
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Old Aug 2, 19, 3:04 pm
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AC Domestic (TB & Sun) Business is generally accepted as superior to the US carriers. So that accounts for about $20 in the difference.

The rest is competition, business, economic forces.

But mainly the punchline to the koan about the MBA professor after listening to a pricing exercise. "Your all wrong. Charge what the market can bear"
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Old Aug 2, 19, 3:07 pm
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Originally Posted by RangerNS View Post
AC Domestic (TB & Sun) Business is generally accepted as superior to the US carriers. So that accounts for about $20 in the difference.

The rest is competition, business, economic forces.

But mainly the punchline to the koan about the MBA professor after listening to a pricing exercise. "Your all wrong. Charge what the market can bear"
We have a winner. The domestic J market in Canada is small and relatively price insensitive. So they can charge it, so they do.

If I had to guess, I would guess that the domestic J cabin is, on average: 40% upgraders, 20-30% connecting to international J, and only 30% or so paying for an actual J, C, D, P, or Z fare.
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Old Aug 2, 19, 3:22 pm
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Given that I often have to pay $1,000 one way YOW-YVR in Y, they must be doing ok and able to charge pretty much what they want on the main transcon routes.
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Old Aug 2, 19, 3:30 pm
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Originally Posted by YZF_Elite View Post
Given that I often have to pay $1,000 one way YOW-YVR in Y, they must be doing ok and able to charge pretty much what they want on the main transcon routes.
Two words: flight pass.
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Old Aug 2, 19, 3:32 pm
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Originally Posted by ridefar View Post
Two words: flight pass.
Unfortunately not within policy to purchase flight passes or business class even if it made more sense.
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Old Aug 2, 19, 4:19 pm
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Because the market can bear it...
Almost noone paysfor these with their own money, and clearly OPM is willing to pay this much for their workers/clients - good on AC for capitilizing on this!
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Old Aug 2, 19, 6:01 pm
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There’s a sizable number of people who rarely fly internationally and have money. They’re happy to pay more for the feeling of getting the best. Spending $2k for a transcontinental flight is pretty accessible financially for many people.

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Old Aug 2, 19, 6:21 pm
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Originally Posted by Sleepy_Sentry View Post
There’s a sizable number of people who rarely fly internationally and have money. They’re happy to pay more for the feeling of getting the best. Spending $2k for a transcontinental flight is pretty accessible financially for many people.
Agreed. YYZ-YVR round-trip P class is currently just north of 2000 CAD.

And there's currently a 638 CAD one-way P fare YYZ-SFO. It's not like better deals don't exist.

Can I get YYZ-YUL as cheap as SFO-LAX? No. But I can do YYZ-SFO cheaper than NYC-SFO.
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Old Aug 3, 19, 9:31 am
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Originally Posted by rankourabu View Post
Because the market can bear it...
Almost noone paysfor these with their own money, and clearly OPM is willing to pay this much for their workers/clients - good on AC for capitilizing on this!
Pretty much this.

There are companies that allow J for some employees on any length of trip, and people seem to be happy burning their employers money on J going YOW-YYZ, hence the market will bear it (pretty much the rest of the people in J going YYZ-YOW are connecting to international J, eUps and crew).
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Old Aug 3, 19, 11:23 am
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Domestic Business = AC Monopoly.

Ron.
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Old Aug 3, 19, 11:34 am
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Originally Posted by RatherBeInYOW View Post
Pretty much this.

There are companies that allow J for some employees on any length of trip, and people seem to be happy burning their employers money on J going YOW-YYZ, hence the market will bear it (pretty much the rest of the people in J going YYZ-YOW are connecting to international J, eUps and crew).
And don't forget the herds of politicians who are happy to spend our tax dollars in J...
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Old Aug 3, 19, 6:18 pm
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Originally Posted by TheOnlyWayTo Fly View Post
And don't forget the herds of politicians who are happy to spend our tax dollars in J...
We are all the OP in that OPM
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Old Aug 4, 19, 7:24 am
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Keep in mind that YUL/YYZ to YVR are both around 5 hours while YUL/YYZ to LHR/CDG are both about 7. The stage lengths are not massively different. Just because it’s domestic doesn’t mean it isn’t a long ways.
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