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Old Mar 22, 2016 | 7:57 pm
  #1  
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SFO-BOS pricing

Not sure what's going on here.

This past weekend, pricing for SFO-BOS and vv suddenly jumped up: before when I was looking, it was in the $150-200 range for cheapest flights (across the board on dates and times). A few days ago, all dates in the future became $334 at the cheapest. Any idea what happened there? I thought this might have something to do with the recent software/schedule loads, but its persisted past that.

(Just to be clear, it ended up not mattering for me, since SJC-BOS is still at the lower price - just surprised that it hasn't come down at all, even for multiple months out! I understand a few days getting a bit more expensive, but this is pretty across the board)
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Old Mar 22, 2016 | 8:05 pm
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Sometimes fares go up, and sometimes they go down.
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Old Mar 22, 2016 | 8:13 pm
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Summer fare jump? I found F on DL cheaper than Y on AA for my June flights. Only L and up buckets available.
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Old Mar 22, 2016 | 8:20 pm
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According to EF, the cheapest published SFO-BOS one-way fare is $315 (G class) and the cheapest round-trip is $328 (O class). The O fare requires a 21 day advance purchase and Saturday night stay.

As for why it changed... fares change all the time for more reasons than anyone on FT can enumerate.
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Old Mar 22, 2016 | 11:51 pm
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Originally Posted by rjw242
Sometimes fares go up, and sometimes they go down.
I get that, but I'd think it'd be rare that they go up across the board for all dates for one specific domestic route (when the competition has stayed at the lower price).

Originally Posted by iplaybass
Summer fare jump? I found F on DL cheaper than Y on AA for my June flights. Only L and up buckets available.
Could be, though it's even as early as April and they jumped up across the board.

Originally Posted by wetrat0
According to EF, the cheapest published SFO-BOS one-way fare is $315 (G class) and the cheapest round-trip is $328 (O class). The O fare requires a 21 day advance purchase and Saturday night stay.

As for why it changed... fares change all the time for more reasons than anyone on FT can enumerate.
Oh interesting! Did not think about roundtrip fares - I'm so used to domestic one-ways typically being priced independently. I assume it's intentional, but I wonder if the r/t requirement is here to stay?
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Old Mar 23, 2016 | 5:07 am
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Just out of curiosity, you mentioned that this past weekend you where pricing this fare and it was in the 150-200 area. A few days latter it doubled up +++ on you, correct? Any reason why you didn't put the itinerary on hold before hand, then check following date to see where prices are at, if the same or lower then cancel first hold and put new one on hold, if higher then buy the hold. That way you are not on the hook to buy at 300++ range.

Why bother trying to figure out pricing on tickets, they use algorithm to predict supply and demand and what to price. The cost of a direct ticket AA-BB might be higher than AA-CC-BB, other carriers might offer different product. The key is cost, routing.
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Old Mar 23, 2016 | 5:46 am
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Originally Posted by kon104
I get that, but I'd think it'd be rare that they go up across the board for all dates for one specific domestic route (when the competition has stayed at the lower price).
It happens. Could be that they changed their pricing model, could be that a fare sale ended, could be that they're throwing in the towel for now in the fare war with VX and B6, could be a temporary glitch. Anyone who actually knows the reason can't post it here
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Old Mar 23, 2016 | 7:46 am
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The simple answer to OP's question is that this is what AA's RM algorithm is recommending. AA believes that demand will support the higher prices, e.g. customers will pay what is being sought.

That algorithm is predictive, but based on many factors and is right much more often than it is wrong.

If the fares are raised and AA can't sell the seats, it is far better for AA to once in a blue moon lower its prices, than to sell seats for less than it could have.
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Old Mar 23, 2016 | 11:56 am
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Originally Posted by arollins
Any reason why you didn't put the itinerary on hold before hand, then check following date to see where prices are at, if the same or lower then cancel first hold and put new one on hold, if higher then buy the hold.
That's exactly what I did - but the SJC timing ended up working out possibly better, so I switched my perpetual hold to that.

Why bother trying to figure out pricing on tickets, they use algorithm to predict supply and demand and what to price. The cost of a direct ticket AA-BB might be higher than AA-CC-BB, other carriers might offer different product. The key is cost, routing.
I'm just generally interested in algorithms/models, whether they be scientific (day job), sports (whoo march madness!), or airline pricing.

Originally Posted by rjw242
It happens. Could be that they changed their pricing model, could be that a fare sale ended, could be that they're throwing in the towel for now in the fare war with VX and B6, could be a temporary glitch. Anyone who actually knows the reason can't post it here
Here's hoping for the glitch, since ending the fare war would be sad.

Originally Posted by Often1
The simple answer to OP's question is that this is what AA's RM algorithm is recommending. AA believes that demand will support the higher prices, e.g. customers will pay what is being sought.

That algorithm is predictive, but based on many factors and is right much more often than it is wrong.

If the fares are raised and AA can't sell the seats, it is far better for AA to once in a blue moon lower its prices, than to sell seats for less than it could have.
Makes sense, thanks!
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