I don't understand...
#1
Original Poster
Join Date: Mar 2002
Location: MEL
Programs: BA Gold; VA Velocity Gold; LH FTL; Marriott Gold; ICHG Platinum AMB; Hilton Gold
Posts: 5,393
I don't understand...
...how they are making this work. I am increasingly finding that BD are more expensive than BA (and just about anyone else) for leisure travel in particular.
For example I'm off to Naples in September for a long weekend. BD want £197.80 including taxes. BA not only want less (£114 including taxes), they have 3 flights a day meaning I can get a 10pm flight back at the end of the trip, giving me a whole extra day in NAP.
And then, for £30 more than BD's Tiny Fare I can travel in Club Europe on BA. Which is what I've decided to do.
I just don't get it. Even forgetting about the difference in service levels, BD are being consistently beaten on price, based on my booking pattern.
I appreciate that BD may be able to pick up some connection traffic at LHR, and that LHR will be more convenient for some. But I really do wonder how they expect to fill the plane charging double the price of their main competitor.
For example I'm off to Naples in September for a long weekend. BD want £197.80 including taxes. BA not only want less (£114 including taxes), they have 3 flights a day meaning I can get a 10pm flight back at the end of the trip, giving me a whole extra day in NAP.
And then, for £30 more than BD's Tiny Fare I can travel in Club Europe on BA. Which is what I've decided to do.
I just don't get it. Even forgetting about the difference in service levels, BD are being consistently beaten on price, based on my booking pattern.
I appreciate that BD may be able to pick up some connection traffic at LHR, and that LHR will be more convenient for some. But I really do wonder how they expect to fill the plane charging double the price of their main competitor.
#3
Join Date: Feb 2005
Location: London, U.K.
Programs: bmi British Midland International Diamond Club
Posts: 3,370
Get this - today I decided to book a return ticket to Paris for this bank holiday weekend. bmi wanted a whopping £267.90, inc taxes, travelling out on Saturday at 13.10 and returning Monday evening. For £139.00 I booked Eurostar instead, travelling out at exactly the same time. And this is in First Class both ways with all the frills. Hmm, who in their right mind would want to fly?
#5
Join Date: Sep 2005
Location: London (UK), Wellington (NZ)
Programs: AirNZ AP *GE, Aegean *G, BMI Gold, BA Exec club Gold, UA MP, QFF
Posts: 303
#6
FlyerTalk Evangelist
Join Date: Feb 2003
Location: New York, NY
Programs: BAEC Gold, Delta Platinum, Hilton Diamond, Marriott Gold, AMEX Platinum (US)
Posts: 18,487
And you can truly forget BD C class, even if the service was decent it is so expensive. Looking at BRU was over £400 compared to BA CE for £220. Madness.
As it happens I don't want to eat out of a box for my £400 thanks
As it happens I don't want to eat out of a box for my £400 thanks
#7
Original Poster
Join Date: Mar 2002
Location: MEL
Programs: BA Gold; VA Velocity Gold; LH FTL; Marriott Gold; ICHG Platinum AMB; Hilton Gold
Posts: 5,393
Originally Posted by treadsoftly
I have no doubt there is some sort of revenue management strategy at work. I just don't understand how it is maximising their revenue - most airlines gouge the last minute business traveller, not the leisure traveller, and I cannot for the life of me see the reverse strategy working for them (especially on leisure-oriented routes like NAP and VCE).
#8
Suspended
Join Date: Mar 2006
Posts: 284
Originally Posted by House
... I just don't understand how it is maximising their revenue - most airlines gouge the last minute business traveller, not the leisure traveller, and I cannot for the life of me see the reverse strategy working for them (especially on leisure-oriented routes like NAP and VCE).
#9
Join Date: Aug 2004
Location: Europe
Posts: 2,341
Originally Posted by Ventimiglia
My father frequently tries to end these type of discussions saying: "Mind your own business!" I realized that's not a bad idea...
Last edited by jjpb3; Apr 26, 2006 at 3:26 am
#10
Join Date: Oct 2003
Location: All the wrong places..
Programs: SQ TPP, BA Gold, Hyatt Life Glob, SPG/Marriott Life Plat,
Posts: 3,371
Originally Posted by Ventimiglia
My father frequently tries to end these type of discussions saying: "Mind your own business!" I realized that's not a bad idea...
#11
Join Date: May 2003
Location: BHX
Posts: 664
Originally Posted by House
...how they are making this work. I am increasingly finding that BD are more expensive than BA (and just about anyone else) for leisure travel in particular.
For example I'm off to Naples in September for a long weekend. BD want £197.80 including taxes. BA not only want less (£114 including taxes), they have 3 flights a day meaning I can get a 10pm flight back at the end of the trip, giving me a whole extra day in NAP.
And then, for £30 more than BD's Tiny Fare I can travel in Club Europe on BA. Which is what I've decided to do.
I just don't get it. Even forgetting about the difference in service levels, BD are being consistently beaten on price, based on my booking pattern.
I appreciate that BD may be able to pick up some connection traffic at LHR, and that LHR will be more convenient for some. But I really do wonder how they expect to fill the plane charging double the price of their main competitor.
For example I'm off to Naples in September for a long weekend. BD want £197.80 including taxes. BA not only want less (£114 including taxes), they have 3 flights a day meaning I can get a 10pm flight back at the end of the trip, giving me a whole extra day in NAP.
And then, for £30 more than BD's Tiny Fare I can travel in Club Europe on BA. Which is what I've decided to do.
I just don't get it. Even forgetting about the difference in service levels, BD are being consistently beaten on price, based on my booking pattern.
I appreciate that BD may be able to pick up some connection traffic at LHR, and that LHR will be more convenient for some. But I really do wonder how they expect to fill the plane charging double the price of their main competitor.
To illustrate this we could simplify the maths and say if 370 passenger are flying on this route on the day, the first 300 will fly BA at 114 at which point BA puts it's price upto 300 so the next 70 fly with BD at 197. In this situation BD have a lighter loading than BA, but have broadly speaking both airline maximised their revenue. So in reality it is not as simple as above, as BA will incrementally step their fares up. However if BD were to match BA at this early stage then this may just drive BA lower.
It may be that BD haven't reacted to BA yet, it may be that they are planing a promotion in the forthcoming weeks. Not saying that BD havee got it right here but I hope that they have and justr trying to illustrate why this could be the correct pricing strategy.
#12
Join Date: Aug 2005
Location: Central Scotland
Programs: BA Gold, KLM Ivory, TK Classic Plus, Car Hrtz PC, AVIS Pref, Hotel HH Dia, ICPC Gold, Marriot Gold
Posts: 268
For what its worth I am DC Gold. I always buy the cheapest tickets avaialble (although I always choose BMI if prices are not too much more). Last year I retained Gold no problem, this year I have made 4 flights (sectors, not returns) and will have no chance of retaining Gold.
I share the same opinion as the original post, BMI are generally much less competitive than before and as such I am not travelling with them anything like as often.
I have flown 10 times with BA, 14 times with Flybe, 8 times with Easyjet and 4 times with Ryanair and 4 times with SAS (at least 2 of these flights qualified for DC miles) in the same period.
Some of the flights are booked well in advance, some at the last minute so overall they just seem less competitive.
I share the same opinion as the original post, BMI are generally much less competitive than before and as such I am not travelling with them anything like as often.
I have flown 10 times with BA, 14 times with Flybe, 8 times with Easyjet and 4 times with Ryanair and 4 times with SAS (at least 2 of these flights qualified for DC miles) in the same period.
Some of the flights are booked well in advance, some at the last minute so overall they just seem less competitive.
#13
Join Date: Nov 2002
Location: Scotland, UK
Posts: 346
The fact that they are also cutting capacity might help explain it. Fewer seats means fewer cheap seats (and fewer empty middle seats ).
I think five of the A321s have now left the fleet to be replaced by A319s. You can take out 65 seats on each flight the A321s previously flew (if both are in economy only layout).
I think five of the A321s have now left the fleet to be replaced by A319s. You can take out 65 seats on each flight the A321s previously flew (if both are in economy only layout).