Unusual fare diff - ATL/LAX DL vs AA
#16
FlyerTalk Evangelist
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,925
When I'm booking a flight and get what experience says is a pricy fare, I'll do due diligence for my clients & double check against other carriers. Usually fare differences among the big 3 are within a reasonable range (call that a couple hundred maybe), but this time, DL was almost DOUBLE for main (Q) fare. $935 vs $485. Both nonstop, both flights within an hour of each other. ATL-LAX RT 11/5-7.
Thoughts on why such a huge difference in almost identical product?
So I'm shaking my head that as DL Diamond, I just bought a main cabin fare using my DL Reserve card on AA out of ATL. I'm totally used to paying somewhat more, being in a fortress city, but wow. Hate missing out on the MQMs & almost-for-sure UG (lots of empties in F), but gotta draw the line somewhere.
Thoughts on why such a huge difference in almost identical product?
So I'm shaking my head that as DL Diamond, I just bought a main cabin fare using my DL Reserve card on AA out of ATL. I'm totally used to paying somewhat more, being in a fortress city, but wow. Hate missing out on the MQMs & almost-for-sure UG (lots of empties in F), but gotta draw the line somewhere.
#17
Join Date: Jun 2019
Location: CLT
Programs: AA
Posts: 431
It's counterintuitive, but sometimes the best way to make money is to send customers to your competitors. If Delta knows that this flight has a high demand for last-minute seats, that might be what is happening.
We used to do that back when I was a hotel Revenue Manager. (And by "we", I mean the revenue management software.) You raise rates so high that people would be silly to pay your rates when your competitor across the street is 50% less. They sell out and then anyone needing a room at the last minute has no choice but to stay with us because we're the only hotel with available room.
It's a bit of a gamble. But given the amount of data that airlines/hotels have with which to make predictions, it's not that risky.
We used to do that back when I was a hotel Revenue Manager. (And by "we", I mean the revenue management software.) You raise rates so high that people would be silly to pay your rates when your competitor across the street is 50% less. They sell out and then anyone needing a room at the last minute has no choice but to stay with us because we're the only hotel with available room.
It's a bit of a gamble. But given the amount of data that airlines/hotels have with which to make predictions, it's not that risky.
Makes sense though, if you have a wealth of statistical data saying that someone's going to buy these fares at this price.