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Old Feb 24, 2019, 8:16 pm
  #31  
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Originally Posted by dval44
Here's a good one:

April 7
OGG-DEN in economy, $1,329

April 7
OGG-DEN-YYZ in economy, $239

I get "markets" and "demand" but this is bananas. ADD an additional international flight at ticket price goes down by 82% or $1,090.

Totally bonkers
Welcome to Canada, where this is normal. YYZ to Hawaii in F is usually sub-$600 each way, and you can even route EWR-HNL.
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Old Feb 24, 2019, 10:10 pm
  #32  
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Originally Posted by dval44
Here's a good one:

April 7
OGG-DEN in economy, $1,329

April 7
OGG-DEN-YYZ in economy, $239

I get "markets" and "demand" but this is bananas. ADD an additional international flight at ticket price goes down by 82% or $1,090.

Totally bonkers
Originally Posted by mduell
OGG-DEN: They're the only nonstop, so they have a competitive advantage.

OGG-YYZ: Lots of different one stop options you can take, UA lacks a competitive advantage.

Airline revenue management: make money where you have advantages, take what you can get everywhere else.
Well there is a potential logic fail there, as they may be cannibalizing their own revenue from OGG-DEN. Only makes any sense if they limit inventory OGG-YYZ pretty strictly.
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Old Feb 25, 2019, 5:45 am
  #33  
 
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Originally Posted by Kacee
Well there is a potential logic fail there, as they may be cannibalizing their own revenue from OGG-DEN. Only makes any sense if they limit inventory OGG-YYZ pretty strictly.
Of course they limit the cheap inventory pretty strictly. Inventory is based on value (hurdle rates/bid prices/leg displacement costs/etc). OGG-DEN may be open in the lowest booking class because fares are high and inventory valuation is high while OGG-DEN-YYZ may be closed by 4-5 booking classes because the system knows fares are low. These systems are extremely sophisticated and the cheap OGG-YYZ fares will only be available when hurdle rates are on the floor and UA would take anything on either leg.
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Old Feb 25, 2019, 7:08 am
  #34  
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Originally Posted by xzh445
How does it price if you use Multicity itinerary?
Segment 1 A - Hub
Segment 2 Hub - C

Does it come out as 700, 1400, or something in between (or higher)?
Is this for a one way, or Round Trip?
it prices out at $1400.
trip is one way.
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Old Feb 25, 2019, 8:11 am
  #35  
 
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Most likely Reasons:
1. Because they can (No competition on A-C).
2. Because they must (A-H and/or H-C has competition)

Other possible reasons:
1. Computer algorithm got faulty data
2. Computer algorithm hasn't been updated for 30 yrs
3. Computer algorithm is actually a trained monkey randomly typing in numbers

Lesson: Don't bother trying to figure it out
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Old Feb 25, 2019, 10:48 am
  #36  
 
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Originally Posted by mduell
OGG-DEN: They're the only nonstop, so they have a competitive advantage.

OGG-YYZ: Lots of different one stop options you can take, UA lacks a competitive advantage.

Airline revenue management: make money where you have advantages, take what you can get everywhere else.
Sure. But is the nonstop premium worth 556% of the ticket? You could literally buy 5 OGG-DEN-YYZ tickets for the price of one OGG-DEN ticket.

Also, many of the OGG-DEN tickets were basic economy, but shockingly the OGG-DEN-YYZ ticket wasn’t. It was full economy for ~$120 per leg.

Also I bought multiple tickets at this price so it didn’t seem to be terribly restricted.
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Old Feb 25, 2019, 11:23 am
  #37  
 
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Originally Posted by dval44
Sure. But is the nonstop premium worth 556% of the ticket? You could literally buy 5 OGG-DEN-YYZ tickets for the price of one OGG-DEN ticket.
Yes, many of my DEN-based travelers will happily pay a 556% premium for the nonstop.

There's a reason that the cheapest published close-in (less than 14 day advance purchase) DEN->NRT business class nonstop exceeds $16,000 roundtrip when there are perfectly adequate connecting itineraries available for less than $5,000. Heck, even the >50 day advance purchase fare is over $10,000.
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Old Feb 25, 2019, 11:27 am
  #38  
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Originally Posted by Sykes
Yes, many of my DEN-based travelers will happily pay a 556% premium for the nonstop.
More to the point, it's not like YYZ is a quick trip from DEN. Most DEN-based travelers would have no idea these fares exist, and would have no use for them if they did. Even someone who was willing to use hidden-city ticketing to try to get the better price on the return might balk at flying 1300 miles in the wrong direction to start their Hawaiian vacation.
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Old Feb 25, 2019, 12:10 pm
  #39  
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Originally Posted by Sykes
Yes, many of my DEN-based travelers will happily pay a 556% premium for the nonstop.

There's a reason that the cheapest published close-in (less than 14 day advance purchase) DEN->NRT business class nonstop exceeds $16,000 roundtrip when there are perfectly adequate connecting itineraries available for less than $5,000. Heck, even the >50 day advance purchase fare is over $10,000.
but ARE your DEN based travelers (or their corporate backers) really paying the 556% premium, or do they have substantial negotiated discounts with UAL?

curious b/c my original scenario isn't a hidden city situation nor a circuitous routing...the routing is simply A-Hub-C, no A-C exists, and just noted that pricing the ticket as A-Hub + Hub-C was substantially cheaper than the single PNR. Assuming the expensive PNR exists b/c Corporate clients book that, but also assume they must be getting >10% discount as part of corporate agreement as no business will survive in the long run if they are consciously paying 100% premium on their airfares for identical routing.
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Old Feb 25, 2019, 12:24 pm
  #40  
 
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Originally Posted by pruss2ny
but ARE your DEN based travelers (or their corporate backers) really paying the 556% premium, or do they have substantial negotiated discounts with UAL?
They're on PassPlus Flex so they're paying slightly less than that--2-5% discount for most domestic itineraries, up to 20% for some international itineraries--but that's not enough to meaningfully change the economics. Many of my DEN-based travelers are executives and other individuals whose time is far more valuable than the fare premium.

Because UA is flexing their pricing muscles in DEN so aggressively, we've moved some of our DEN-based travelers to PassPlus Exec, which is fixed price based on zones that roughly correlate to distance.
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Old Feb 25, 2019, 12:36 pm
  #41  
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Originally Posted by pruss2ny
it prices out at $1400.
trip is one way.
There are much cheaper roundtrip fares on this route and they available from $686 in BE and $776 in main cabin (T fares). The legacy airlines still have numerous routes with roundtrip fare filings where a roundtrip purchase is cheaper than two one-way's for the same flights. The vast majority of flyer's are buying seats on these flights at the roundtrip fare rates, not the one-way rates. The one-way fares are aimed at price-insensitive business flyers who are looking at non-stop convenience rather than price and will buy one-way tickets at times because they don't know when they will return. Below are roundtrip fares from Google flights for UA non-stop flights between DEN and OGG. As you can see, this shows a very different picture than the one-way pricing.



Last edited by xliioper; Feb 25, 2019 at 12:48 pm
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Old Feb 25, 2019, 1:46 pm
  #42  
 
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Originally Posted by jsloan
More to the point, it's not like YYZ is a quick trip from DEN. Most DEN-based travelers would have no idea these fares exist, and would have no use for them if they did. Even someone who was willing to use hidden-city ticketing to try to get the better price on the return might balk at flying 1300 miles in the wrong direction to start their Hawaiian vacation.
Yeah true but I'm pretty happy with my:

DEN-OGG: 17.5k Singapore Miles, upgraded to E+ with my UA status
OGG-DEN-YYZ: $230 with GPU applied (but not confirmed) for the overwater portion. Still debating weather to go to Toronto or not

Regarding Sykes' comments on Narita fares, they really are charging an arm and a leg for an inferior (though direct) product. No polaris lounge, no polaris seats, etc.

I originated my ticket in a smaller market to visit my folks, then did a 23 hour layover in Denver so I could go home, then took the direct in J r/t for $~3k, and flew direct back to DEN. At this point, a quick hour flight is still worth $10k to me.

I'm fully aware how people value their time, etc. I do wonder if a DEN-NRT saves that much time over a DEN-(LAX/SFO/SEA)-HND with a decent connection. We could be talking minutes here instead of hours, with some added hassle no doubt.
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Old Feb 25, 2019, 1:49 pm
  #43  
 
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Originally Posted by dval44
I'm fully aware how people value their time, etc. I do wonder if a DEN-NRT saves that much time over a DEN-(LAX/SFO/SEA)-HND with a decent connection. We could be talking minutes here instead of hours, with some added hassle no doubt.
Yeah, the close-in DEN-Narita fares are too much for my execs, but if the situation dictated they'd happily pay the premium for DEN-OGG (assuming they couldn't' take advantage of the roundtrip fares).

I'm sure that there are some people paying for that premium for the DEN-NRT nonstop. Even at a 40% discount, it's still a hefty chunk of change though.
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Old Feb 25, 2019, 2:30 pm
  #44  
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Originally Posted by Sykes
They're on PassPlus Flex so they're paying slightly less than that--2-5% discount for most domestic itineraries, up to 20% for some international itineraries--but that's not enough to meaningfully change the economics. Many of my DEN-based travelers are executives and other individuals whose time is far more valuable than the fare premium.

Because UA is flexing their pricing muscles in DEN so aggressively, we've moved some of our DEN-based travelers to PassPlus Exec, which is fixed price based on zones that roughly correlate to distance.
have to admit i bristle at lines like "executives...whose time is far more valuable..."
my cohort is about as "executive" as they come and all I can think is that if you really have execs who willing/knowingly pay 2x the rate for the SAME routing (but for 1 PNR) please share the name of the companies so that i can short them

Originally Posted by LBJ
There are much cheaper roundtrip fares on this route and they available from $686 in BE and $776 in main cabin (T fares). The legacy airlines still have numerous routes with roundtrip fare filings where a roundtrip purchase is cheaper than two one-way's for the same flights. The vast majority of flyer's are buying seats on these flights at the roundtrip fare rates, not the one-way rates. The one-way fares are aimed at price-insensitive business flyers who are looking at non-stop convenience rather than price and will buy one-way tickets at times because they don't know when they will return. Below are roundtrip fares from Google flights for UA non-stop flights between DEN and OGG. As you can see, this shows a very different picture than the one-way pricing.
understood, but this really isn't a one way v rt issue...this is an observation that a routing booked as 1 PNR is literally 2x as expensive as the identical routing booked as 2 PNRs:
(A->HUB->C) = 2x [(A->HUB)+(HUB->C)]

and again, not really a complaint, nor am i particularly anxious over splitting to 2 PNRs...genuinely interested in the rationale.

Last edited by WineCountryUA; Feb 25, 2019 at 3:19 pm Reason: merging consecutive posts by same member
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Old Feb 26, 2019, 11:57 pm
  #45  
 
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Originally Posted by Sykes
Yes, many of my DEN-based travelers will happily pay a 556% premium for the nonstop.

There's a reason that the cheapest published close-in (less than 14 day advance purchase) DEN->NRT business class nonstop exceeds $16,000 roundtrip when there are perfectly adequate connecting itineraries available for less than $5,000. Heck, even the >50 day advance purchase fare is over $10,000.
Hence the reason that I live in Colorado, fly to NRT a couple of times per year in business, but have only flown DEN-NRT or NRT-DEN when using miles. I can fly through LAX or SFO for a fraction of the price.
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