Vast difference in codeshare ticketing prices
#16
Join Date: May 2003
Location: San Francisco, CA Frmr AA Plat AW Plat Frmr UA 1K Frmr HGP Plat now just UA 1MM/1P
Posts: 320
I don't know firsthand, but I'd bet money that the primary reason for the bucket system is historical. Or in other words, the origin likely comes from paper or early computer based inventory tracking practices.
These days, the availability is theoretically based upon the "options": flexibility is one, but so is the ongoing aggregate number of passengers. The airlines charge a "starting" cost which is supposed to fill the plane to some minimum capacity and revenue which pays back operating costs. The risk that this doesn't occur is why flexible fares are more expensive. Biz/first class usually combine more passenger space = less overall passengers = more cost per passenger, plus more service plus flexibility.
In reality, the bucket system today is more a function of system complexity - which is to the airline's advantage - but offset by the advent of OTA booking engines.
The rise of Spirit, for example, is because they game the OTA booking engines by unbundling almost everything into fees, but which makes their fares always the cheapest.
And then there's the mileage folk - who gamed the system back in significant part due to the fare buckets, although the advent of revenue based earn has largely negated that.
These days, the availability is theoretically based upon the "options": flexibility is one, but so is the ongoing aggregate number of passengers. The airlines charge a "starting" cost which is supposed to fill the plane to some minimum capacity and revenue which pays back operating costs. The risk that this doesn't occur is why flexible fares are more expensive. Biz/first class usually combine more passenger space = less overall passengers = more cost per passenger, plus more service plus flexibility.
In reality, the bucket system today is more a function of system complexity - which is to the airline's advantage - but offset by the advent of OTA booking engines.
The rise of Spirit, for example, is because they game the OTA booking engines by unbundling almost everything into fees, but which makes their fares always the cheapest.
And then there's the mileage folk - who gamed the system back in significant part due to the fare buckets, although the advent of revenue based earn has largely negated that.
#17
Join Date: Oct 2014
Programs: AIRNZ GE
Posts: 3
All good generic observations about codeshare agreements, but AIRNZ does have a track record of ripping off its NZ based customers, particularly on flights to North America (it has a virtual monopoly). As an example it is always cheaper to fly from Oz east coast cities (MEL/SYD/BNE) to North America than from AKL - despite the fact that all of these transit through AKL. As an example, it is often around 30-40% cheaper for BC from MEL/SYD to LAX (via AKL) than for AKL-LAX - usually ends up similar to the PE fare from AKL once you take the extra airpoints into account. For FF who travel trans-tasman a lot its easy to book the Oz-AKL leg with a long (i.e days/weeks) layover in AKL at no extra charge - the same can be done on return and the AKL-OZ leg forfeited or used for another Oz trip. You just have to use the multi-trip booking function on the airnewzealand.com.au website.
#18
A FlyerTalk Posting Legend
Join Date: Apr 2013
Location: PHX
Programs: AS 75K; UA 1MM; Hyatt Globalist; Marriott LTP; Hilton Diamond (Aspire)
Posts: 56,450
That's what airlines do. They exploit captive markets. Nothing unique about NZ sticking it to NZ based pax. Just check UA fares ex-IAH, or DL fares ex-MSP.
#19
Join Date: Jun 2009
Programs: United Platinum,1M miler; Alaska OneWorld Sapphire
Posts: 39
I often fly at US Taxpayers' expense, which requires me to fly on a US Flagged Carrier. This can be a code share for a flight operated by a non-US carrier. In my experience, the US carrier ALWAYS is charging more for these seats than the foreign carrier (I'm usually flying from US to Europe). I always figured it was because they have this legal advantage and can therefore charge more. Does anyone know if this is true?