Airline companies are really, really shifty

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I was looking, out of pure curiosity, at the price for a Budapest to Rio de Janeiro business class roundtrip flight. It's around $3,000, and it has a stop at London Heathrow.

So I figured, "It must cost less if I were to take the flight directly from London". It turns out I'm wrong, and by huge margin!

The same flight, on the same day and hour, from London Heathrow to Rio de Janeiro, costs $4600. That's 50% more expensive, and it doesn't even include the Budapest to London flight!

I looked online and found a good explanation: Why Does My Connecting Flight Cost Less Than a Nonstop? (Ask Cranky) | The Cranky Flier

Now, I knew that airlines have different tactics to maximize their profits, like overbooking, knowing that a part of the passengers will miss the flight, but I didn't think they'll go this far.

I wonder if it's possible to book the cheaper flight, the one with connections, and just show up at London Heathrow for the second flight.
#off topic forum
  • There was a recent case (Why is United Airlines suing a 22-year-old? - Dec. 29, 2014) where someone is being sued by United for taking advantage of those connecting flights to help people save money. You get a connecting flight which is cheaper and you simply dont get on the last leg of the flight.

    My family had to take an international flight overseas with a stop over in London. They decided to turn the London component into a week vacation before continuing on to Canada. They essentially got a free flight to London by flying a connecting flight.
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    • That jerk KNEW he was violating contracts! He wants us to believe he was the ONLY one in history to notice that. HECK, I noticed it a long time ago. The travel agencies have ALSO!

      The problem is that the airlines could give you some trouble AND, if you do the London trip, as you indicate, at least they THREATEN to CANCEL the return leg. So you fly TO London, fail to fly to Canada, and they cancel the entire flight FROM London.

      HECK, I once came up with the idea of STRADDLING flights, to lower the cost of subsequent flights. I certainly wasn't the first to come up with it. Sometimes that simply MUST happen, and I saw no statements against it, but a travel agent told me THAT wasn't allowed either.

      At least US airlines don't recognize THEIR obligations in contracts, but they have NO resistance to acting against YOUR violations of it. As for THEIR obligations, I guess we are lucky that the FAA and the federal government have a LITTLE bit of a leash on them.

      I can't explain WHY the prices are so bad, but there are likely reasons. SUPPOSEDLY they often don't make that much per flight, and sometimes LOSE money! Fuel and support costs a FORTUNE. And don't get me started on the salaries, DUMB requirements, and pensions.

      I have had flights where just the AIRPORT TAX was 200% of the flight price! YEP! So a $100 flight has $200 in AIRPORT taxes, and you end up paying $300, for the ticket! Do any of these people talk about THAT?

      Anyway, I would hate to be stranded because of a cancelled flight, like above. I HAVE straddled some flights, but only because it could happen by accident, etc.... ALSO, ironically, earlier corporate rules(From companies I worked for) FORBID straddles, etc...!

      It would be interesting if an airline SERIOUSLY went to a fair pricing strategy.

      Steve
  • Banned
    I read a news story where United Airlines and Orbitz are suing the guy that owns skiplagged.com

    The website is supposed to be able to find discounts on air travel where you have your destination wherever the layover is located.
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    • [1] reply
    • NOPE! That is the guy we spoke about earlier. He DOESN'T try to find discount flights. He finds flights that are somewhat reasonably priced to go to a layover city, that the purchaser wants as a destination, and then they can buy the whole flight, taking only PART of it. The problem is NOT that they are "finding discount flights", but that they are encouraging people to violate contracts.

      According to that crankyflier site, this is a necessity play, where they bilk those that NEED to fly to a popular destination, to get the other people a fare THEY like. If true, I DISLIKE the bilk part, especially since I am one in that group and all, but if true, and a site like skiplagged took off, the OTHER flights would just go up in price.

      Steve
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  • Banned
    I agree completely: it's really, collectively, a very shifty industry indeed.

    (I suppose, to some extent, in their "defense", it can also be mentioned that it's not a particularly profitable industry, that many "national air carriers" don't make profits at all, and that the public demand for cheaper and cheaper flights is basically insatiable. It has some similarities with the catering and restaurant industry, too, in that it's sometimes difficult to maintain quality and safety, given the inexorable public pressure for low prices.)

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    • [2] replies
    • Yeah, at least in the US, the seats are even getting smaller, and seats aren't the same size. Service is HORRIBLE! They USED to offer peanuts in economy and often some snack in first class, and had free non alcoholic drinks planewide, and free alcoholic drinks in first class. Today, FORGET IT! You want peanuts? MAYBE you can BUY some peanut m&ms or a snackbox. Both cost perhaps $5. They used to have free first checked bags, they don't anymore.

      I don't know about other countries, but Irelands "ryan air" is apparently WORSE! Ryan Air is supposed to be THEIR version of Southwest BUT, last I knew, Southwest was pretty good and CHEAP!

      Still, they aren't like they were in the 1960s. I had memories of the flights I was on in the sixties, and they seemed like a scifi flick! They would be SO foreign today. Well, I have since seen documentaries and commercials from that era that show detail JUST LIKE I REMEMBERED! But apparently they charged a LOT back then. And gas, and labor were cheaper then! ALSO, as I recall, the carts were PLASTIC back then. I remember asking why they had all these holes in them, and the flight attendant said it was to cut down on weight. TODAY, for whatever reason, they are METAL. As for the technology and all? It improved a bit, but is largely IDENTICAL. ALSO, planes were allowed to go FASTER back then!

      Steve
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    • Huge CapEx* requirements + wafer thin margins + intense competition = avoid as an investment.

      Or, as Sir Richard Branson put it when being asked "What's the best way to become a millionaire?"


      *Capital expenditure (the cost of buying planes).
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  • It's certainly an odd pricing system and it has been for many years. I try to use it to my advantage and have enjoyed a number of 'bonus' flights and stopovers this way, especially in the USA.

    Also keep in mind that London has very high Air Passenger Duty rates compared to other places. You can save $100s by flying in and out of nearby cities eg Paris.

    Andrew
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    • Banned
      The pricing is bizarre, looking at it superficially. I suspect that even looking at it in depth, and "understanding the industry", it's still pretty bizarre.

      I can fly from the North of England to Amsterdam (45-50 minutes flying time) on a "budget airline" with proper planes for a price that's so low the sandwiches and drinks you buy on board cost about the same as the ticket. Or I can travel half an hour later and fly with KLM (Dutch national airline) and pay three times as much for the ticket. Apart from the price, the other catch is that with KLM the plane is a poxy little "City Hopper" (my father calls it a "toy airplane") and if there's much wind or snow, in the winter, it doesn't even take off for a few hours until the wind drops because it can get blown away (so you never know whether you'll catch your connecting flight out of Schiphol, if you have one). I swear they do it just to make life difficult for people.


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  • Here's another example I discovered recently. Say I want to fly Sydney to Honolulu. 9 hrs direct.
    For some reason it's usually cheaper to fly Syd-LA or Syd-SFO and then fly all the way back to Honolulu.
    (SFO = San Francisco)

    So you're getting a free trip to LA or SFO.
    Or you can look at it another way: Fly to LA or SFO and you get a free trip to Hawaii!

    Andrew
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    • It's not just international flights that do this.

      A few years ago while I lived in Sydney, I wanted to book a flight from Sydney to Perth to attend my Mum's 70th birthday.

      A direct flight cost twice as much as taking one that went via Brisbane!!!!!

      (For non-Aussies have a look at a map of Australia to see how much sense that makes.)
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  • @kilgore:

    In a way you're right, but in all your examples prices are somewhat static and predictable, unlike flight fares. You know roughly how much a TV costs and you'll usually find very similar prices for it in all stores. And there won't be a place where you can regularly get that TV + another product (the equivalent of the a connecting flight in our thread) at a lower price than what you usually have to pay just for the TV.

    Also, in your Internet service example, the price might be determined by infrastructure investments: it certainly costs more to offer this service in a mountainous area than in a plain one, doesn't it?

    Something else we didn't consider, and might make me sound stupid for throwing out the initial assertion, is if the $3,000 price is the regular one and the $4,600 an artificially-inflated one to profit from the people who want a direct flight, or is the $4,600 price the regular one and the $3,000 price a discounted one just so they can fill up more seats? The article I linked suggests the latter, but who says they're experts?
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    • So is it the fact that the prices aren't static and predictable that makes airlines shifty? I guess I just don't see it that way. To me that just means that the airline industry is very competitive, has low margins and thus requires sophisticated supply/demand models in order to remain profitable. I'm certainly no expert, but my guess is that the airlines do lose a bit of money on many sold seats -- especially, the flights with one or more stops -- but that they make it up (or at least try to) on the surpluses they are able to charge for direct flights, business class or other gimmicks (e.g., "economy plus"). So in a sense their "shiftiness" really amounts to a subsidy to people willing to trade inconvenience for a cheaper ticket. They'll sell you a seat at a even price lower than the cost to them -- if you're willing to have a 10 hour layover in Timbuktu, have only 2 1/2 inches of legroom and get nothing to eat but a stale bag of peanuts.

      As to the internet service example, yes there might be differences in cost but (1) this is often not the case and (2) even when it is, the price isn't being set based on the cost, but what the market will allow. What I mean is that if there is a mountain town that has 50 internet service providers, internet there will still cost less there than a non-mountainous town with just one ISP. Again, the cost is irrelevant to the price; and especially in industries with high fixed costs (like an airline or an ISP), once the investment is made (by, for instance dropping hundreds of millions on jumbo jets) the goal is to recoup that initial investment as best as they can. For an airline, that means dynamic pricing, which as I said is frustrating. And annoying. But again, it's not shifty. It's just business.
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    I was looking, out of pure curiosity, at the price for a Budapest to Rio de Janeiro business class roundtrip flight. It's around $3,000, and it has a stop at London Heathrow. So I figured, "It must cost less if I were to take the flight directly from London". It turns out I'm wrong, and by huge margin!