10/26/2004

Airfares, Pay Less For More

I was booking my flights for the upcomming vacation, and of course I couldn't get a direct flight to where I wanted to go. It is cheaper to go on more flights. In fact, the more flights you are willing to take to the same destination, the less you have to pay. Souldn't flying more cost more?

I also noticed that a flight to Moscow is not much more expensive than a flight to North Carolina. So you might as well go on a really cool vacation to Europe instead of visiting your family for Christmas since you can fly a lot farther for hardly anymore cash.

I also noticed that airfares are still around what they used to be about 10 years ag0. If you haven't looked lately check it out.

9 comments:

Janet said...

I know that when I am flying home for vacation I want as few stops as possible. This is the same for everyone. Direct flights are more convenient. That is why direct flights are usually more expensive. It will take you longer to get across the U.S. if you have 4 stops which in turn makes it less desirable. Because of this, Delta can charge more for direct flights.

Some direct flights, on the other hand are cheaper. I know flying from Boise to Salt Lake, for example, is only $60. This is because there is tons of business being done between the two cities and in turn, more people will fly instead of drive the 5 hours. It is like an incentive. If you can get a cheap flight, why drive?

stevepadilla2 said...

I don't quite understand the economic implications involved in flying more and paying less, but I am sure there is an explanation. Maybe there is higher supply of flights and less demand for a flight to moscow then say a flight to North Carolina. Whatever the reason, I would rather go to Moscow then North Carolina.

peter_parker said...

If you ask someone who travels quite a bit, they'll tell you that paying more for a direct flight is definetly worth the extra cash. Waiting in airports and switching planes is a headache.

However, someone who travels once a year or so, like a college student, will say that the headache is worth the extra cash in their pocket. Airlines know this and take advantage of it.

Notice also that if you book a flight months in advance you usually pay less than if you book a flight a week in advance. A reason why is that most people plan ahead that far are usually having to save to travel whereas the traveller who goes on a whim usually has more money.

Anyway, I might look into getting a flight to Paris. Paris, TX that is. I wonder what the rates are these days.

Bruce Banner said...

I don't fly that much but when I do fly, I much rather get there with less stops and pay a little more than have a alot of stops and taking longer. If you are not in a hurry and want to save money then go for it.

Bryce Larkin said...

I thought this was very interesting. A flight to Europe is almost the same price as going to North Carolina! I also don't understand why if someone takes more flights, it will cost less. I believe the reason is the amount of people just flying to North Carolina is less than the amount of people flying somewhere closer. If more people are flying to a closer destination then the airlines can cover their costs more effectively.

John West said...

Airlines really have their hands tied when it comes to raising fares. For one, most are crippled with debt and terrorist worries not to mention enormous amounts of government regulatory standards. All of these things mean that they simply just want to fill seats and the best way to do so is to make airlines fares affordable for all people. How many times do you go to the airport and only see affluent people flying? Never. In-fact I sometimes have to check and see if I'm actually in an airport or a Greyhound bus station.

Maudi said...

The reason that they make you pay less to take lots of flights to reach your destination, is because chances are you'll never make it there. They make sure to put you on many flights that have the best chance of having a layover as well as the most uncomfortable seat on the whole plane. They make you pay less because it'll be the worst trip of your life (if you even make it to your destination).

Dr. Tufte said...

This is third degree price discrimination (Chapter 11). Divide your consumers into two groups - those that don't mind layovers, and those that don't. Charge them different prices to maximize profits.

I can't say why flights to Moscow are so cheap. My guess is that it is weak demand, or else the Russians are subsidizing to keep the price low.

Wilfredo Vidrine said...

It''s quite impressive.