The Beginning Of Reasonable Fares?

[Art at ISP]

I never thought this would happen, but in each of my 6 or so trips so far this year, the US web site has always priced below my corporate web site, which has negotiated discounts.

And I am not talking about the artificially depressed promotional fares although one trip was ridiculously low.

Case in point--I did LGA-CLT-LGA last week--last minute trip. If you recall, this is one I used to *#&$^ about--it was always near $1K. It priced this time at $415, and was fully refundable and unrestricted!! My corp web site was $100 more.
Considering that at 11 cents a mile US cost to bring me there was under $60, it was fair for me and profitable for the company.

This morning I had to book MCO for late Feb--the holiday week as it turned out due to a trade show. My corp web site priced at $650 and up. I couldn't get the web site to price since my preferred flights were sold out but I called the Chairman's desk and even with a Chairman's override (full fare one way) it priced almost $100 less than my company web site.

Bear in mind while these fares are not the bargain basement fares some of you accuse us of wanting, they are FAIR and REASONABLE, which is truthfully all my colleagues and I have been pushing for all this time.

I don't know--is it possible they're finally listening to us?

PS--GREAT job on my PHL-SEA yesterday!!! You guys are truly the best!

My best to you all.....

 

[whlinder]

I don't know--is it possible they're finally listening to us?

[post="244418"][/post]​

Uhh... you might want to send Independence Air a thank you card in the mail for the LGA-CLT fare.

 

[JS]

Case in point--I did LGA-CLT-LGA last week--last minute trip. If you recall, this is one I used to *#&$^ about--it was always near $1K. It priced this time at $415, and was fully refundable and unrestricted!! My corp web site was $100 more.
Considering that at 11 cents a mile US cost to bring me there was under $60, it was fair for me and profitable for the company.

You forgot to double that for roundtrip. But still, $368 is triple the $120 average cost ($368 is the real fare, excluding all taxes).

By the way, Delta has been flying CLT-NYC for a while, and I'm pretty sure that's the reason why US is charging less than half of what they used to. CLT-LGA is not a GoFare route, and they're not doing it to be nice. It's competition -- the way it's supposed to work and finally does so now more than ever.

 

[hadEnuff]

All I have to say is enjoy it while you can. In 18-24 months if you fly you will have to pay a reasonable price. The shake out will just about be complete by then and unless you are traveling between high density markets you are going to pay a reasonable price for air travel. There will always be some dirt cheap fares on certain routes that the "so called" low cost carriers fly but that will be about it.

 

[SVQLBA]

All I have to say is enjoy it while you can. In 18-24 months if you fly you will have to pay a reasonable price. The shake out will just about be complete by then and unless you are traveling between high density markets you are going to pay a reasonable price for air travel. There will always be some dirt cheap fares on certain routes that the "so called" low cost carriers fly but that will be about it.

[post="244479"][/post]​

What you call "dirt cheap" is what others call reasonable given that B6, WN and the oether "so called" low cost carriers have re-set the bar as to what travelers should expect for their $$.

I would agree with you if you'd said expect the Podunk-to-backwater fares to rise as hub capacity eventually leaves the markets. However, say goodbye to the $1000 walk-ups on trunk routes from major metro areas.

 

[Non Rev]

"By the way, Delta has been flying CLT-NYC for a while, and I'm pretty sure that's the reason why US is charging less than half of what they used to. "

Actually DL just bagn CLT-JFK service 1X daily on a RJ. I dont think thats enough to pull down fares.


However, its a good thing to see more rational fares. Now if it would spread sytemwide. It would be great to see some creative/rational pricing on markets from CLT to those cities that are driveable. IE:CHS,SAV,ILM,ATL,ROA,AVL,RDU,GSO,OAJ,EWN,MYR,AGS,CHA, etc, Last minute walk ups are mostly $300.00 and up. Im sure few are sold at that rate. LOST REVENUE. Charge a more reasonable rate and watch the money come flowing in.

 

[Art at ISP]

Non Rev,

My point all along is that they are leaving money on the table by overcharging. If the rates get REASONABLE (not CHEAP) the money will flow in.

JS--the $415 was round trip!!!! It was great. It should be VALUE pricing rather than Go Fares. They stay profitable and make customers happy...

 

[whlinder]

Uhh, like I said, Independence Air is in the CLT-NYC market. That fare matches their highest fare, since you have to stop in IAD. US matched it, but matched with a L fare, which is what I believe Art found.

So is US doing a good job of value pricing with this? Or does it just appear that way because the plane is empty and they are still selling in the L bucket?

The Q unrestricted fare if L is sold out is 838 RT + tax.
The H unrestricted fare if L/Q are sold out is 998RT + tax.
The B unrestricted fare if L/Q/H are sold out is 1120 RT + tax.
The Y unrestricted fare if L/Q/H/B are sold out is 1220 RT + tax.

Now, maybe US allocates a heck of a lot of seats to the L bucket. But they certainly didn't have that price before FlyI.

So yes, this is once again the beginning of reasonable fares on US, thanks to being forced to match a LCC. And if the L bucket is sold out, are they still reasonable?

 

[bluetoad]

"Actually DL just bagn CLT-JFK service 1X daily on a RJ. I dont think thats enough to pull down fares."



Delta/comair flys CLT-LGA 4 times a day now.

 

[Non Rev]

"Actually DL just bagn CLT-JFK service 1X daily on a RJ. I dont think thats enough to pull down fares."
Delta/comair flys CLT-LGA 4 times a day now.

[post="244911"][/post]​

My bad................ :blink:


I did'nt realize DL was flying CLT-LGA..........i saw the press about JFK but not LGA.

 

[SpinDoc]

Non Rev,

My point all along is that they are leaving money on the table by overcharging. If the rates get REASONABLE (not CHEAP) the money will flow in.

JS--the $415 was round trip!!!! It was great. It should be VALUE pricing rather than Go Fares. They stay profitable and make customers happy...

[post="244657"][/post]​

Art:

You are absoultely correct about this. Southwest
Fun Fares (tm) are not always the lowest fare
in a given market, but they are reasonable for
customers who purchase inside of the 7 day
advance purchase time limit. US could rake in
the money for last minute purchases by capping
O/W fares at $399. Pricing has to make the
commitment and then follow through with a plan
on systemwide GoFares, because they will sell
a lot more close in tickets at $399 than they do
at $1200. As it is now, they have to give away the
lower end of the fare structure just to fill seats.
If they limited the number of $79 O/W 21 day
advance seats, and gradually moved customers
to higher fare buckets, by the time the flight departed,
they would have full flights, and a higher AVERAGE
fare than they do now.

US pricing executives really need to go to school
and learn how Southwest prices their markets.
If they understood the Southwest model, US
would be turning customers away due to a lack
of seats.

 

[BoeingBoy]

SpinDoc (with a nod to Art at ISP),

From the latest available Consumer Air Fares Report Table 1 comes this...

And for those that don't follow the report, Table 1 shows markets with the largest carrier (by percent market share) and low cost carrier (based only on one-way average fare, not legacy/LCC divisions). These are the only markets where both US and WN are shown.

For each market, the US average one-way fare and WN average one-way fare are given. Keep in mind that this is for 2Q04 - WN started service in PHL that quarter.

IND PHL US 182 WN 135
PVD RDU US 129 WN 142
BNA TPA US 111 WN 115
BNA PHL US 135 WN 114
IND JAX US 95 WN 96
MCO PHL US 121 WN 89
BUF MCO US 117 WN 121
LAS BNA US 141 WN 163
BHM LAS US 143 WN 155
LAS ORF US 168 WN 168

Notice that in only 3 markets did WN have a lower average fare, and they were all new PHL service. I don't remember, but the possibility of introductory fares is there.

Jim