Does US Not Want My Business?

Old Sep 1, 05, 8:58 am
  #1  
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Does US Not Want My Business?

I don't want to whine about fares, but I have noticed something very odd. I fly a lot out of TYS. I just checked a late September trip to SAN. The lowest fares on CO, UA, AA, and NW are $189 all in. US is asking $255 all in. And it's not because the lowest fares are sold out. It's because it is the lowest US offers.

I know, I know. Oil prices, operational costs, blah blah blah. BUT I still have to wonder why US is $75 more on the same route. And it's not just this route. I checked many different destinations on US, and they always price out more than the rest. It almost seems as if they don't want my business.

Perhaps the worst is when I can get $75 or more lower on US but on US metal! It just doesn't make any sense to me. I've heard others say the same thing in their markets about US always being more expensive. I'm jsut wondering why they go with that strategy, since I am more likely to take my AA or *A status to AA or UA for the lower fare.

Does anyone else feel the same way?
chicaloca453 is offline  
Old Sep 1, 05, 9:36 am
  #2  
 
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In this case, US is actually charging a reasonable fare. $189 RT from TYS loses an incredible amount of money. I would give them a pass for not giving away the farm to some passengers on this route. That being said, the mixture of fares sold is the final determinant for the income side of potential profitability.

$255 to go from TYS to SAN sounds reasonable to me. If you prefer, fly the competition and help them join US in Chapter 11.
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Old Sep 1, 05, 9:42 am
  #3  
 
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I dont necessarily agree. If US can fill thier planes at higher prices than good for them. However, if they cannot fill thier planes becasue they are consistently higher priced than the other carriers then it may not be such a good thing. I would like to think that someone in revenue management figured out that they can sell X number of fares for $75 more than the cheapest fare and come out ahead then selling X for $100 X for $200 X for $300 but im not so sure. Certainly higher fares are better for the airline but if their planes are going out empty then it would be much better to sell at least some seats at teh lower prices. Although what do I know, I still think it would be better to sell last minute tickets cheaper on thier website then through consolidators or offer last minute award seats if a plane has many seats to sell, certainly not oversell.
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Old Sep 1, 05, 9:58 am
  #4  
 
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Originally Posted by chicaloca453
I don't want to whine about fares, but I have noticed something very odd. I fly a lot out of TYS. I just checked a late September trip to SAN. The lowest fares on CO, UA, AA, and NW are $189 all in. US is asking $255 all in. And it's not because the lowest fares are sold out. It's because it is the lowest US offers.

I know, I know. Oil prices, operational costs, blah blah blah. BUT I still have to wonder why US is $75 more on the same route. And it's not just this route. I checked many different destinations on US, and they always price out more than the rest. It almost seems as if they don't want my business.

Perhaps the worst is when I can get $75 or more lower on US but on US metal! It just doesn't make any sense to me. I've heard others say the same thing in their markets about US always being more expensive. I'm jsut wondering why they go with that strategy, since I am more likely to take my AA or *A status to AA or UA for the lower fare.

Does anyone else feel the same way?
I fly a lot out of CHA and find the same thing, though in an ironic twist, I get MUCH better US fares out of TYS than I do CHA. I'm flying to IND in October and a flight from TYS was $125 less than CHA.

But, yeah, US seems to be more expensive tham the competition on similar flights out of CHA a bunch as well.

That said, I am unlikely to switch airlines, based mainly on the fact that I've flown US my whole life, so I have a lot of miles built up with them, and out of CHA, they are the only airline that is on time most of the time.
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Old Sep 1, 05, 10:25 am
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Originally Posted by AtlanticBeach
In this case, US is actually charging a reasonable fare. $189 RT from TYS loses an incredible amount of money. I would give them a pass for not giving away the farm to some passengers on this route. That being said, the mixture of fares sold is the final determinant for the income side of potential profitability.

$255 to go from TYS to SAN sounds reasonable to me. If you prefer, fly the competition and help them join US in Chapter 11.

I don't argue that $255 is reasonable. However, it is very hard to justify spending that much more just to fly US (especially if I can sit on US metal on a UA codeshare for the lesser price).

When I fly, it is either on a client's money or on my own. Either way, spending extra when I don't have to is very hard to explain. The client wouldn't want it to happen, and I would rather take the money and spend it elsewhere.

The US flights out of TYS are never full capacity. At times, they're maybe half. So I have to wonder just how successful they are at filling the flights given that I have flown full flights on AA and DL for sure. And the line for NW is always ridiculous (although I've never flown them myself). Maybe they've written off competing in TYS, and if that's the case, I will need to find a new airline. My clients give me a choice within reason, but I think when 5 airlines are $75 less, it would be hard to find a reason to stick with US and make them take a hit. That's all I'm saying.
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Old Sep 1, 05, 11:15 am
  #6  
 
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I hope that airlines start raising their prices since gas is getting outrageous. It is getting to the point now where you can fly cheaper than you can drive. After you are done paying gas and tolls you will end up paying more driving than flying.

After Katrina gas prices have really gone up. How are any of the airlines going to survive through this. ESPECIALLY this up coming winter.

It is hard to find a happy medium for what airlines should charge. How much is gas per barrel right now??

Last edited by US AIRWAYS FAN; Sep 1, 05 at 2:54 pm
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Old Sep 1, 05, 2:48 pm
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Originally Posted by AtlanticBeach
In this case, US is actually charging a reasonable fare. $189 RT from TYS loses an incredible amount of money. I would give them a pass for not giving away the farm to some passengers on this route. That being said, the mixture of fares sold is the final determinant for the income side of potential profitability.

$255 to go from TYS to SAN sounds reasonable to me. If you prefer, fly the competition and help them join US in Chapter 11.
I completely agree.

And Fan, I believe prices are surging to over $70 a barrel. Bottom line, fares just need to go up.
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Old Sep 2, 05, 4:31 am
  #8  
 
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Are all times equal on those TYS fares? Sometimes I see cheaper fares on other airlines when I'm surfing around, but when I look at the flights, they're the off-peak times - like redeyes, or early AM flights.
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Old Sep 2, 05, 3:08 pm
  #9  
 
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I have become increasingly frustrated with US for the reason that their fares are consistently higher than what is available on other airlines. Fares on US from BOS to DCA, FLL and PHL are all higher than competitors. For example, US is 100 more from BOS to FLL than Delta on November weekends.
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Old Sep 3, 05, 7:21 pm
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I would hold off a bit until the merger is completed before jumping ship. Like you, I look at city pairs that I fly semi-frequently, like ALB-PIT and BTV-PIT, and appalled at the fares ($550 from ALB and $385 from BTV).

According to folks on US Aviation, the fare pricing function at Crystal City is on auto-pilot. Apparently, the mid-level managers who were actually making the pricing decisions have left US for greener pastures. Fare rationalization seems to be a big thing with HP. I would expect them to quickly get a hold on this problem after October 1st.
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