Any reason for outrageous business class prices ex-HKG on Cathay Pacific
Feb 19, 2016, 10:36 am
#1
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Any reason for outrageous business class prices ex-HKG on Cathay Pacific
I have been looking at Cathay business fares recently from HKG-JFK and I have been seeing direct fares at 11k USD. Are there any reasons for this price?
Feb 19, 2016, 11:07 am
#4
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Yes. Passengers will pay that price. Also, what OP sees for one flight on one day is hardly the only price for which seats are sold, especially on large corporate contracts which pervade that route between two major financial capitals.
Feb 19, 2016, 11:15 am
#5
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Airline-specific discussion occurs in the appropriate airline forum, so we'll shift this over to the CX forum for further discussion. Thanks. 
/JY1024, TravelBuzz co-moderator
/JY1024, TravelBuzz co-moderator
Feb 19, 2016, 11:25 am
#6
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Yes, but do individuals actually pay the 10k ask? I was looking through a wide array of dates and have been seeing over 10k on average. Wouldn't it serve their interests better to sell them at say 7-8k?
Last edited by expatOWflyer; Feb 19, 2016 at 11:30 am
Feb 19, 2016, 12:57 pm
#7
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I don't work for an airline but I've learned from people who do that if they charge such a price they are confident somebody will actually pay that price. That route is said to be one of the busiest and most profitable ones. If looking for yourself, try starting in Taipei or Manila and the price should drop significantly more than you'll need to pay to get to those starting points.
Feb 19, 2016, 12:58 pm
#8
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HKG-NYC is a rich market, with a lot of money on both ends.
Booking 3 weeks out, where there is still I class inventory available, the price drops to about $7800 USD. But if you're looking at J and C class fares, that $10K figure is the norm.
CX yield management know their market. If you want a deal, your best bet is to book a cheap AA flight from NYC to YYZ, and then get a CAD fare out of YYZ. I class should run you about $5800 CAD, and a flex fare is about $7600 CAD. More than enough savings to pay for the connection through YYZ.
Booking 3 weeks out, where there is still I class inventory available, the price drops to about $7800 USD. But if you're looking at J and C class fares, that $10K figure is the norm.
CX yield management know their market. If you want a deal, your best bet is to book a cheap AA flight from NYC to YYZ, and then get a CAD fare out of YYZ. I class should run you about $5800 CAD, and a flex fare is about $7600 CAD. More than enough savings to pay for the connection through YYZ.
Feb 19, 2016, 1:14 pm
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Also as mentioned above, the price you quoted is not the only price around. A discount on general price will presumably require a further discount on corporate contracts ...
Feb 19, 2016, 1:16 pm
#11
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A common misconception is to think that an airline fare is like a price in a store, where, e.g. all boxes of a given type and size of cereal are the same price. Airlines prosper by selling the same seat at many different prices to different markets. In addition to charging less for ex-TPE (or ex-India, etc), they charge less to companies with whom they have contracts, etc. Plus they can adjust the retail price (either up or down) day by day. Does everyone pay 10K? No. But if you want that seat right now, you'll have to pay 10K.
Feb 19, 2016, 4:29 pm
#12
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The ex-ICN flight is around HKD 40k (restricted). So that's an example where not every seat is sold for $85k.
But for alternatives, AA sells for around $40k ex-HKG via DFW. The longest leg is in the same seat as CX so it's much better value and you can stretch your legs in DFW (albeit while collecting your bags and transiting).
But for alternatives, AA sells for around $40k ex-HKG via DFW. The longest leg is in the same seat as CX so it's much better value and you can stretch your legs in DFW (albeit while collecting your bags and transiting).
Feb 19, 2016, 6:21 pm
#13
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Can't afford or don't like their pricing? Then there are lots of alternatives out there. For all CX / Apple / Starbucks care, they are no problem filling their seats and selling their products to the public at these retail prices.
Feb 20, 2016, 12:48 am
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Probably not too many individuals will pay it, but many companies might.
It's not necessarily about what someone would pay. The point is that CX does not want to sell that particular ticket unless it receives 11k for it.
It may prefer keep the seat open so it can be used as part of a different ticket, to upgrade someone from a lower class, or even to let the seat be empty. But if someone wants to pay 11k USD then CX will let them have that ticket and forego the other options it has for that seat.
It's not necessarily about what someone would pay. The point is that CX does not want to sell that particular ticket unless it receives 11k for it.
It may prefer keep the seat open so it can be used as part of a different ticket, to upgrade someone from a lower class, or even to let the seat be empty. But if someone wants to pay 11k USD then CX will let them have that ticket and forego the other options it has for that seat.
Feb 20, 2016, 1:18 am
#15
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If you think 11K is outrageous, perhaps you're not the type of customer CX wants in business class? Pricing is an art and like all airlines - CX has teams of smart folks analysing the market and adjusting pricing accordingly.
Here's a little insight on how other (not CX AFAIK) deploy customized pricing and generate even more revenue: https://www.linkedin.com/pulse/how-b...ark-ross-smith
Here's a little insight on how other (not CX AFAIK) deploy customized pricing and generate even more revenue: https://www.linkedin.com/pulse/how-b...ark-ross-smith