America West Fares are VERY Expensive in Many Markets.

 
Old Jan 19, 2006, 10:47 pm
  #1  
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America West Fares are VERY Expensive in Many Markets.

It is pretty sad how the "New" U*S Airways is pricing themselves out of many many markets by 60% - 100%.

Next time that you look at a fare on www.flyawa.com, you should check out the new FareChaser from Yahoo! and you will be shocked.

www.farechase.yahoo.com
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Old Jan 19, 2006, 11:29 pm
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I'm sure many of our prices are higher than competitors but they have stated to us that they are no longer interested in fare wars.

This past Thanksgiving we had record revenue numbers, but fairly low load factors compared to years before. This is because we did not match the other carriers lower fares. After they were sold out, people booked on us and we made more money in the process. I don't think we will post a profit for the 4th quarter but they said our revenue was up considerably because of the pricing.
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Old Jan 20, 2006, 10:24 am
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Originally Posted by Joeypete
I'm sure many of our prices are higher than competitors but they have stated to us that they are no longer interested in fare wars.

This past Thanksgiving we had record revenue numbers, but fairly low load factors compared to years before. This is because we did not match the other carriers lower fares. After they were sold out, people booked on us and we made more money in the process. I don't think we will post a profit for the 4th quarter but they said our revenue was up considerably because of the pricing.
This has actually been AA's strategy for years. Try to get a revenue premium where possible, even with slightly lower load factors. It generally worked very well for AA (until 9/11 happened and (in hindsight) an ill-advised merger with TWA).

Good for US -- doing a solid revenue management job!
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Old Jan 20, 2006, 11:40 am
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Originally Posted by Joeypete
I'm sure many of our prices are higher than competitors but they have stated to us that they are no longer interested in fare wars.

This past Thanksgiving we had record revenue numbers, but fairly low load factors compared to years before. This is because we did not match the other carriers lower fares. After they were sold out, people booked on us and we made more money in the process. I don't think we will post a profit for the 4th quarter but they said our revenue was up considerably because of the pricing.

As a business traveler for a professional services company we are required to fly the lowest carrier (within reason). This is due to the federal law imposed by the IRS for perks. Please refer to the IRS guidelines for information on miles as perks.
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Old Jan 20, 2006, 1:50 pm
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Originally Posted by Joeypete
I'm sure many of our prices are higher than competitors but they have stated to us that they are no longer interested in fare wars.

This past Thanksgiving we had record revenue numbers, but fairly low load factors compared to years before. This is because we did not match the other carriers lower fares. After they were sold out, people booked on us and we made more money in the process. I don't think we will post a profit for the 4th quarter but they said our revenue was up considerably because of the pricing.
That would work, except for the fact that 3 of the 4 hubs have a LUV-ing problem: they will happily undercut HP/US for that traffic, and they are not afraid of adding capacity.

This strategy gets torpedoed if LUV enters CLT.
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Old Jan 20, 2006, 11:16 pm
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Not true from TUS. I find that in most of the Western cities I fly to from here, HP has the lowest rates three/four weeks out (if you're willing to put up with the dreaded Mesa Air connection to PHX). They'll keep low-fare buckets available until the flight is often very full.
Most often, I find better fares or the same as WN, too.
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Old Jan 21, 2006, 9:41 am
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Almost every Airline matches every Airline in any competing non-stop market with the same fares what is at play is how many seats in that fare bucket and availability. The only diff. I see is LUV will price their cheapest internet fares out 3-4 months in advance for know busy days and AWA does not do that. But for business travels booking a week out or less any dif. you see by then is almost certianly becuase of LF not pricing!
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Old Jan 22, 2006, 10:36 pm
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Originally Posted by Joeypete
I'm sure many of our prices are higher than competitors but they have stated to us that they are no longer interested in fare wars.

This past Thanksgiving we had record revenue numbers, but fairly low load factors compared to years before. This is because we did not match the other carriers lower fares. After they were sold out, people booked on us and we made more money in the process. I don't think we will post a profit for the 4th quarter but they said our revenue was up considerably because of the pricing.
You should be listening to your customers instead.
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Old Jan 23, 2006, 7:22 am
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LCC? Are they kidding?

Originally Posted by HPDTW
It is pretty sad how the "New" U*S Airways is pricing themselves out of many many markets by 60% - 100%.

Next time that you look at a fare on www.flyawa.com, you should check out the new FareChaser from Yahoo! and you will be shocked.

www.farechase.yahoo.com
Folks, let's remember this is supposed to be a LCC so they should be creating the "fare wars" for the "legacy" carriers, not ignoring them. In the SW florida market, AA is kicking the crap out of US on fares, especially to the W. Coast, and they have a superior FC product in comparision.

Just my $0.02, but come on . . if you are in a Zebra suite, you are a Zebra, not a Lion.

Thanks,

William
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Old Jan 25, 2006, 8:35 pm
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Originally Posted by Joeypete
[C]ompetitors ... have stated to us that they are no longer interested in fare wars.
Last I heard price-fixing was still illegal under the antitrust laws. How come all airlines have raised their unrestricted LAX-LAS fares from $99 to $109?

Anybody here work for the Justice Department?

Oh yeah, if you're flying from LAX-IAD, be sure to book US from LAX-IAD-PHL and get off the plane in IAD, save $400.
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Old Jan 25, 2006, 8:47 pm
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Originally Posted by Joeypete
I'm sure many of our prices are higher than competitors but they have stated to us that they are no longer interested in fare wars.
Originally Posted by mbstone
Originally Posted by Joeypete
[C]ompetitors ... have stated to us that they are no longer interested in fare wars.


Last I heard price-fixing was still illegal under the antitrust laws. How come all airlines have raised their unrestricted LAX-LAS fares from $99 to $109?

Anybody here work for the Justice Department?. . .
Your snippet is inaccurate. The "they" Joeypete is referring to is HP management, not the competitors. HP has said (to employees) that they're not interested in fare wars. The company has been very public about that stance since they overhauled their fare structure a few years ago.

Now, how they act when they have the ability to raise fares is for another thread. . .
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Old Jan 26, 2006, 12:15 am
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Originally Posted by wrdouglas
Folks, let's remember this is supposed to be a LCC so they should be creating the "fare wars" for the "legacy" carriers, not ignoring them. In the SW florida market, AA is kicking the crap out of US on fares, especially to the W. Coast, and they have a superior FC product in comparision.

Just my $0.02, but come on . . if you are in a Zebra suite, you are a Zebra, not a Lion.

Thanks,

William
On the contrary, they may "win" , but it is a pyrrhic victory. Setting a low fare only means they are more than likely losing more money than the rest. Im pretty sure that US management is deliriously happy they are charging the lowest fare, all it does is fill their plane faster with low yield crap. Anyone could run at 100% load factor if they charge super cheap fares. Having the right mix of high yield passengers and low yield while consistently maintaining high load factors , at profitable levels, now thats the trick. There is no glory in offering the lowest prices just go ask Mr. Skeen and the former IAIR crew. They offered the lowest prices around and guess what they screwed up by not making any money. If they were profitable I would be the first to congratulate them, but they weren't and they paid dearly for not doing anything about it.

And before any of you mention Southwest, AA is not even remotely near their cost levels.

As for the view of price fixing. Every day at multiple time airlines can publish new fares. It is solely up to the other airlines to match or enter higher or lower fares. Just because other airlines match an action does not mean price fixing. If enough one large airline does not match the rate hike it is frequently withdrawn.
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