First class price discrepancy...what gives?
 

sample fares for Presidents weekend:
EWR-LHR $7,018
EWR-FCO $5,265
EWR-CDG $6,188
EWR-DUB $5,408
EWR-MAD $3,419

that's quite a difference in cost between Newark-London and Newark-Madrid. Does anyone know why this is?

My comments:

• Supply and demand
• Madrid is not a major business center
• London attracts business people who are not overly price sensitive, and their employers are willing to pay the significant premium over coach
• Madrid doesn't generate enough business travelers to fill the "C" seat inventory, so the pricing matrix brings the cost down to a level where it might attract people who would otherwise fly in coach
• On a subjective basis you could argue that on a most important to least important business center basis, the pricing is in line
• Spanish peseta is weaker then the other countries currencies

[This message has been edited by Craig6z (edited 01-07-2001).]

Actually, the Spanish peseta is no weaker or stronger than any of the others except for sterling. The rest are all tied to the euro.

actually the peseta is weaker in terms of purchasing power parity which is what an airline would consider when setting fares for a specific market, amongst other commercial factors.

this is also the case in italy, greece, and many countries in asia and africa.