Why is hidden city ticketing possible?
#1
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Why is hidden city ticketing possible?
I can't understand the economics behind airline prices such that hidden city ticketing is possible.
For example, an airline may sell a business-intensive market A-B at $5000 but A-B-C at $3000, because it is trying to compete with some other airlines serving A-C or A-D-C, etc. However, in this case, isn't it better off to sell more $5000, $4500 or $4000 A-B tickets?!
For example, an airline may sell a business-intensive market A-B at $5000 but A-B-C at $3000, because it is trying to compete with some other airlines serving A-C or A-D-C, etc. However, in this case, isn't it better off to sell more $5000, $4500 or $4000 A-B tickets?!
#2
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The demand curve for A-B may mean there are no tickets to be sold between $5000 and $3000 to A-B. They may also not want to abandon A-C and shrink their route map for competitive and marketing reasons.
#4
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In general, you need to look at the origin and destination cities as the airline's product. They are selling A to B for X and A to C for Y, and it just so happens that some of the ways to get to C might be via B, non-stop, or both.
Of course, fare class availability and other factors are in play when it comes to prices, but this is the general reason.
Of course, fare class availability and other factors are in play when it comes to prices, but this is the general reason.
#5
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Air carriers do not operate on a cost plus model. Thus, there is no per mile charge to be levied.
Connection points are simply logistical necessities. If you are flying A-C and happen to require a plane change at B, that has nothing to do with what you are prepared to pay for your ticket. If it happens that the demand for A-B is stronger than A-C, the carrier can charge more for the former, even though the latter is a great distance.
At first, it makes no sense. But, as soon as you look at A-B and A-C as separate demands, the pricing makes a great deal of sense. The HCT issue only arises when people purchase A-C because it is cheaper than A-B and then end their trip at B.
Connection points are simply logistical necessities. If you are flying A-C and happen to require a plane change at B, that has nothing to do with what you are prepared to pay for your ticket. If it happens that the demand for A-B is stronger than A-C, the carrier can charge more for the former, even though the latter is a great distance.
At first, it makes no sense. But, as soon as you look at A-B and A-C as separate demands, the pricing makes a great deal of sense. The HCT issue only arises when people purchase A-C because it is cheaper than A-B and then end their trip at B.
#7
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I can't understand the economics behind airline prices such that hidden city ticketing is possible.
For example, an airline may sell a business-intensive market A-B at $5000 but A-B-C at $3000, because it is trying to compete with some other airlines serving A-C or A-D-C, etc. However, in this case, isn't it better off to sell more $5000, $4500 or $4000 A-B tickets?!
For example, an airline may sell a business-intensive market A-B at $5000 but A-B-C at $3000, because it is trying to compete with some other airlines serving A-C or A-D-C, etc. However, in this case, isn't it better off to sell more $5000, $4500 or $4000 A-B tickets?!
#9
Join Date: Mar 2017
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@miklcct, this confuses a lot of people. For those who have trouble figuring this out, one simple way to picture it is to forget about the connecting airport completely. As others have pointed out, connecting flights are usually a logistical necessity.
For example, you can fly from Phoenix to Minneapolis on United, but not nonstop. The only way to do it is to connect in ORD (or another United hub). You might notice that PHX-ORD costs more than PHX-MSP with a connection in ORD. This is due to supply and demand. Pricing of the airfare has nothing to do with your PHX-MSP itinerary being routed through ORD. You are being sold a ticket with its airfare based on PHX-MSP.
It is certainly possible to buy a ticket for PHX-MSP if you want to go to ORD, but you are taking several risks. One, airlines do not allow this practice, technically speaking. However, there is often little they can do about it. You must have only carryon luggage, because any checked bag will be checked through to MSP. You will not see it at ORD. (Note: there are exceptions to this, such as if you are flying into the US from an international destination.)
Another risk is that you could be rerouted. For example, you could also fly PHX-MSP on United via IAH. If one of your original flights is canceled or delayed, United might issue you a new routing via IAH. Because United's responsibility is to get you from Phoenix to Minneapolis, they have no obligation to connect you in Chicago. There would be nothing you could do about it.
For example, you can fly from Phoenix to Minneapolis on United, but not nonstop. The only way to do it is to connect in ORD (or another United hub). You might notice that PHX-ORD costs more than PHX-MSP with a connection in ORD. This is due to supply and demand. Pricing of the airfare has nothing to do with your PHX-MSP itinerary being routed through ORD. You are being sold a ticket with its airfare based on PHX-MSP.
It is certainly possible to buy a ticket for PHX-MSP if you want to go to ORD, but you are taking several risks. One, airlines do not allow this practice, technically speaking. However, there is often little they can do about it. You must have only carryon luggage, because any checked bag will be checked through to MSP. You will not see it at ORD. (Note: there are exceptions to this, such as if you are flying into the US from an international destination.)
Another risk is that you could be rerouted. For example, you could also fly PHX-MSP on United via IAH. If one of your original flights is canceled or delayed, United might issue you a new routing via IAH. Because United's responsibility is to get you from Phoenix to Minneapolis, they have no obligation to connect you in Chicago. There would be nothing you could do about it.
#10
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Another risk is that you could be rerouted. For example, you could also fly PHX-MSP on United via IAH. If one of your original flights is canceled or delayed, United might issue you a new routing via IAH. Because United's responsibility is to get you from Phoenix to Minneapolis, they have no obligation to connect you in Chicago. There would be nothing you could do about it.
#11
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This is always floated as a risk, but the reality is if your flights are canceled or delayed, airlines have always been exceedingly flexible in rebooking. If you find availability and ask for specific flights through Chicago, I've never encountered an agent who would refuse and insist you had to route their way via IAH.
#12
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One could always insist at the gate and they are in such a hurry, they might say "whatever!"
#14
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If there were no confidence in airlines actually flying scheduled flights and could cancel willy-nilly for whatever reason, would you ever book with that airline again?
#15
Join Date: Jan 2010
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To fly the other leg (outbound or inbound) with a full load of passengers and to fly both ways with a full load of freight in the hold.