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#1
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I was on-line trying to book my flight for a conference in Charlotte NC. The fare to Charlotte with two stops was over $400. So I notice my usual flight to Florida that I take to visit relatives with a connection in Charlotte was at least $100 less. So I called a reservation agent with USair and asked if I could just book the Florida flight and not take the connecting flight from Charlotte to Florida saving $100. She said no it would void the ticket and I would have to pay a $150 re-booking fee. That makes no sense whatsoever! I think they are just gouging passengers needlessly as fare should be cheaper if it were shorter flight or allow an unused ticket portion without penalty!
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#2
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Airfares have nothing to do with distance. It is purely supply and demand, and what the competition is offering via their hubs. Nonstop flights are frequently more expensive because many people will pay more for the convenience of flying nonstop.
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#3
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Airfare is not calculated based on distance or number of stops. That is a common misconception. Airfare is priced based on demand for a particular market. Supply and demand works just the same in the airline industry for tickets, as does it for normal products at a retail store. The more in demand something is, the more it costs.
If demand is higher for a flight to Charlotte, it will cost more. Typically one way flights and non stop flights are higher priced, because their is higher demand for them. Right now, demand for flights to Florida is likely low, since it is winter, thus the prices are cheaper. Watch those prices rise once summer roles around. Also, the airlines do not calculate fares based on connections/stops. If you are going to fly from lets say Seattle to Miami, with a connection in Charlotte, the fare is calculated as a Seattle to Miami flight, and the pricing is based on the demand for that market (people trying to go from Seattle to Miami). The price just to fly from Seattle to Charlotte, not taking that second Miami flight may be higher. That is because the demand for that market (people going from Seattle to Charlotte) is higher. It is simple economics just like in any industry. Products or services in higher demand usually cost more. In the airline industry, flights into certain higher traffic markets will usually cost more. It has absolutely nothing to do with distance or stops. |
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#4
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There is one financial element in multiple stops: Airport landing fees, which can be substantial. The more stops, the more landing fees incurred. Some airlines have sweetheart deals with locals airports (especially the ones hungry for business), and some airports (usually the major ones) control the action.
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#5
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That is another great point. I don't think some people realize how much it costs the airlines to operate these flights. There is fuel and labor (which most people should understand), but also contrary to popular belief, the airlines do not own and operate the airports. I say that, because I've read complaints in which people complain about the airport itself or the food availability at the airport, etc., like it is the airline's fault.
The airlines have to pay landing fees, rent for gate, ramp and ticket counter space as well as the fuel costs for that local airport. Those prices will vary by airport, causing certain airports/cities to be more or less expensive to fly into. Fares will often times reflect that. The pricing structure of airfare is actually quite complex and there is A LOT that goes into it that your typical passenger would never consider. It amazes me the number of complaints I read (considering I am not only a pilot, but also former airline employee) that are assumption based and completely inaccurate, if only the person knew the full details of why things often times happen or are the way they are within the airline industry - and really, aviation as a whole. The problem is that most people's only experience with aviation is with the airlines when they are traveling. |
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#6
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Something else I was reminded of. A flight will only carry enough fuel to reach it's first destination. It is safer landing a light airliner, than one heavy with fuel. An aircraft with multiple stops will be refueling at every stop. $$$
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#7
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Yes, I understand all that...pricing and markets. I get it but I AM THERE! Let me get off the plane without charging me $150 just because you can!
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#8
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It is far from simple economics.. it is a clear illustration of how the monopoly power of the airlines is used to the detriment of the customer. Whilst all goods are priced to some degree by demand, they are also influenced by the elements which go into the overall price. Airfares, logically, would be considerably more expensive with multiple stops, as these require more fuel and incur additional fees and staff to handle the aircraft at each stop. However, the airline may not have a monopoly in the Miami market. US Air has a virtual monopoly in Charlotte however, and this is the reason they can gouge you. Delta does the same with the Atlanta market, Continental in Newark, AA in Dallas and so on. There is not a true market... it is a series of carefully crafted "carved up" markets, which the majors have colluded to dominate. A few stars, such as Southwest challenge this, but the majors work hard not to compete properly in the market and pay huge sums to Washington to keep things that way.
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