Fare Inversion - Longer Flights Cheaper
May 27, 2015 | 12:37 pm
#1
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Fare Inversion - Longer Flights Cheaper
I was just discussing with a friend how it seemed that from the US West Coast the fares to Western Europe are now higher than more distant points - which I attributed to the Gulf carriers price-cutting as well as Turkish airlines.
I decided to take a quick survey - using an outbound date of 9/16/15 and a return date of 9/23/15, and was surprised at the degree of what I call the fare inversion (I knew it was there, I hadn't realized the magnitude):
SFO-LHR - $1,277
SFO-AMS - $1,361
SFO-DEL - $890.
SFO_JNB - $996.
SFO-BKK - $720.
Looks like the airlines went to revenue based mileage earning just in time.
I decided to take a quick survey - using an outbound date of 9/16/15 and a return date of 9/23/15, and was surprised at the degree of what I call the fare inversion (I knew it was there, I hadn't realized the magnitude):
SFO-LHR - $1,277
SFO-AMS - $1,361
SFO-DEL - $890.
SFO_JNB - $996.
SFO-BKK - $720.
Looks like the airlines went to revenue based mileage earning just in time.
May 27, 2015 | 12:41 pm
#2
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Fare Inversion - Longer Flights Cheaper
Not just in time. Revenue earning was just to adapt to this type of fare structure. Summer fares to Europe are always more expensive with all the American tourists whereas India or the Middle East isn't a great place to visit during the summer.
May 27, 2015 | 2:47 pm
#3
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If you try the same city pairs in November the more distant places (BKK, DEL, JNB) are still hundreds of dollars lower than London and Amsterdam.
May 27, 2015 | 2:50 pm
#4
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Fare Inversion - Longer Flights Cheaper
Cities like London and Amsterdam are also usually more expensive cities due to high levels of business travel. But try booking tickets to Moscow right now and see how cheap it is!
May 27, 2015 | 3:07 pm
#5
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DCA-LGA can be more expensive than IAD-LHR. Distance has nothing to do with pricing. Supply & demand trumps all, as it always does.
Not sure people would be happy if there were a flat $ per mile rate.
Not sure people would be happy if there were a flat $ per mile rate.
May 27, 2015 | 3:11 pm
#6
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Different markets, different fares. If you need/want to go to London, tickets to Delhi or Bangkok aren't acceptable substitutes.
May 27, 2015 | 3:19 pm
#7
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I get the market forces here - I can tell you that five years ago it was quite different - Europe was far cheaper than beyond Europe routes that went through Europe.
My point is simply pointing out the change from the past - and also pointing the finger at the Gulf carriers, as the cheaper fares tend to be to places they fly.
My point is simply pointing out the change from the past - and also pointing the finger at the Gulf carriers, as the cheaper fares tend to be to places they fly.
May 27, 2015 | 9:47 pm
#8
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I get the market forces here - I can tell you that five years ago it was quite different - Europe was far cheaper than beyond Europe routes that went through Europe.
My point is simply pointing out the change from the past - and also pointing the finger at the Gulf carriers, as the cheaper fares tend to be to places they fly.
My point is simply pointing out the change from the past - and also pointing the finger at the Gulf carriers, as the cheaper fares tend to be to places they fly.
May 27, 2015 | 10:41 pm
#9
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