The future for intercontinental OW pricing.
Dec 9, 2017, 8:12 pm
#1
Original Poster
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The future for intercontinental OW pricing.
With the LCCs introducing low OW pricing intercontinental, I wonder if the US legacy carriers (inc UA) will introduce consistent competitive (1/2 RT) inter-continental OW pricing.... you would think so, just as they had to respond to WN years ago (if memory serves)....however I'm not as informed as many on here regarding the airline industry...
Dec 10, 2017, 3:28 am
#3
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Airlines are experimenting on how to counter this - Lufthansa group e.g. tests some concepts at the moment, for example the "Anyway travel pass" where you book a flight from A to B on set dates but will not get exact flights, times and so on (even the airline out of LH-group and thus connecting cities) until two days before the flight. Those flights were quite a bit cheaper than normal offers (e.g. they offered Germany-LAX or vice versa for 249€ ow), but came with some restrictions like no additional baggage and no changes, but were upgradable on the other hand. Another idea they experimenting with (within Europe) is that you buy flight-hours at a fixed price and then can use these to buy as many tickets as long as the combined block-hours do not exceed the hours you purchased. Again quite some restrictions with these (every route can only be flown once out of each package, no domestic flights only, 21 day advance purchase) but it shows what the legacies are looking at...
We will see how the legacies will react in a changing market-place...
Greetimngs - Dirk
We will see how the legacies will react in a changing market-place...
Greetimngs - Dirk
Dec 10, 2017, 8:57 am
#4
Join Date: Apr 2003
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With the LCCs introducing low OW pricing intercontinental, I wonder if the US legacy carriers (inc UA) will introduce consistent competitive (1/2 RT) inter-continental OW pricing.... you would think so, just as they had to respond to WN years ago (if memory serves)....however I'm not as informed as many on here regarding the airline industry...
Dec 10, 2017, 12:18 pm
#8
Join Date: Jan 2016
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Does Jetblue have an aircraft that can go the 'range' that UA aircrafts go?
For example, I thought the Jetblue rumors were that Jetblue was going to fly East coast -> Europe. These are only 6-8 hour routes, right?
Can Jetblue compete on the long-haul routes? LAX - LHR; LAX/SFO - Asia, etc. I think the fares on UA are very competitive with P rates. Granted, I don't know what Jetblue or LCC's would charge.
For example, I thought the Jetblue rumors were that Jetblue was going to fly East coast -> Europe. These are only 6-8 hour routes, right?
Can Jetblue compete on the long-haul routes? LAX - LHR; LAX/SFO - Asia, etc. I think the fares on UA are very competitive with P rates. Granted, I don't know what Jetblue or LCC's would charge.
Dec 10, 2017, 12:35 pm
#9
Join Date: Sep 2013
Posts: 1,116
Does Jetblue have an aircraft that can go the 'range' that UA aircrafts go?
For example, I thought the Jetblue rumors were that Jetblue was going to fly East coast -> Europe. These are only 6-8 hour routes, right?
Can Jetblue compete on the long-haul routes? LAX - LHR; LAX/SFO - Asia, etc. I think the fares on UA are very competitive with P rates. Granted, I don't know what Jetblue or LCC's would charge.
For example, I thought the Jetblue rumors were that Jetblue was going to fly East coast -> Europe. These are only 6-8 hour routes, right?
Can Jetblue compete on the long-haul routes? LAX - LHR; LAX/SFO - Asia, etc. I think the fares on UA are very competitive with P rates. Granted, I don't know what Jetblue or LCC's would charge.
Dec 10, 2017, 12:39 pm
#10
Join Date: Jan 2016
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Round-trip right!? Omg. I guess I am isolated and spoiled being based out of the west coast. <2000 for Asia, <1800 for LHR, <2500 for SYD. *one ways. and P, P, and Z fares I believe.
Dec 10, 2017, 2:33 pm
#11
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UA typically only offers one way pricing (at half round trip cost) where it faces competitive pressures to do so. I believe B6 was a leader on this in the US. Some routes ex IAH for example still require RT and a Sat night stay I believe. Because there is no competitive reason not to.
I think we’ll see UA offer more affordable one way pricing as it faces increased competitive pressures from ULCCs like Norwegian. If I’m UA though this is where I’d deploy BE to ensure the company can compete for that traffic without eroding revenue premiums.
I think we’ll see UA offer more affordable one way pricing as it faces increased competitive pressures from ULCCs like Norwegian. If I’m UA though this is where I’d deploy BE to ensure the company can compete for that traffic without eroding revenue premiums.
Dec 10, 2017, 2:48 pm
#12
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Dec 10, 2017, 4:18 pm
#13
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
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But why, lacking and competitive pressure to do so, would a company slash its prices? I'd love cheaper flights, too, but that's not the goal of the airline.
Dec 10, 2017, 5:39 pm
#15
Join Date: Sep 2013
Posts: 1,116
No.
Maybe, when the A321neo joins the fleet in a couple years. But the decision to do so is not yet announced.
No, but Chinese carriers do. My first example was PEK-BOS. That's a long-haul route that is VERY competitive for one way fares.
I'll dispute that the flights are empty and also that the fare is never discounted. A 7-day trip starting on 13 February prices at ~$3300 r/t right now on UA, less than half the price CX is charging on the same dates for a nonstop flight. The o/w fare remains higher, but that's because there is no competition for o/w fares in that market. When the market shows up with competition UA will respond.
But why, lacking and competitive pressure to do so, would a company slash its prices? I'd love cheaper flights, too, but that's not the goal of the airline.
Maybe, when the A321neo joins the fleet in a couple years. But the decision to do so is not yet announced.
No, but Chinese carriers do. My first example was PEK-BOS. That's a long-haul route that is VERY competitive for one way fares.
I'll dispute that the flights are empty and also that the fare is never discounted. A 7-day trip starting on 13 February prices at ~$3300 r/t right now on UA, less than half the price CX is charging on the same dates for a nonstop flight. The o/w fare remains higher, but that's because there is no competition for o/w fares in that market. When the market shows up with competition UA will respond.
But why, lacking and competitive pressure to do so, would a company slash its prices? I'd love cheaper flights, too, but that's not the goal of the airline.