Pricing differences

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This topic contains 32 replies, has 12 voices, and was last updated by  Swissdiver 21 Jun 2013
at 22:19
.

Viewing 15 posts - 1 through 15 (of 33 total)

  • Anonymous

    Swissdiver
    Participant

    For one trip, I must go through a US travel agent (company policy). As discussed on another thread, I am considering doing something weird, i.e. adding a leg to fly the new B747-8. I therefore check the price on my own before asking the TA and got of USD 3’715 (lufthansa.com – checked yesterday and today and got the very same result). But the TA quoted me USD 5’825! Told them to check on lufthansa.com: they got a price over USD 7’000! And, yes, for the very same flights on the very same days.
    In the past, IATA pricing was making this possible. But nowadays, I have to say I am quite astonished this is still possible!


    Senator
    Participant

    Could it be that the sale ended before you ticketed? I had the same thing happen to me where I forgot to ticket when a sale offer (as on Lufthansa.com) was available and by the time I came around to book the offer had ended.

    This would be my gut feeling.


    Californian
    Participant

    The airlines seem to price business class fares bought in the US higher than those bought in Europe. You might ask the travel agent to call LH and explain they are buying the ticket for someone clearly not based in the US and see if that unlocks the lower fare. Regardless, I would have them call LH and ask why the fare is different. Good luck — I’m curious to hear the end result.


    Swissdiver
    Participant

    @Senator: I checked online before and after the TA did.
    @Californian: sounds like an interesting option…


    Senator
    Participant

    I think the term @Californian is referring to is Sales Inside Ticketing Inside (SITI). Many fares are restricted to only be sold within a territory and you need someone with market access to do this, like a local Travel Agent


    Senator
    Participant

    Swissdiver,

    I took a quick glance at the fares loaded in ExpertFlyer between London and Chicago on LH:
    PNCGB1 LH P Round-Trip 3389.00(USD)
    I assume you are referring to this fare, I see no SITI requirement.

    I just want to inform you (pending travel policy and Ts&Cs) that for about $1,150 more you can go on LH in First via FRA on the B747-8i. I am booked on this in July, excited like a kid on Christmas.
    ANCGB28W LH A Round-Trip 4550.00(USD)

    Both fares require a Saturday night stay, but if you are Miles & More member the A class will give you 300% miles while P class only 100%.


    Swissdiver
    Participant

    Thanks, Senator.
    Interestingly, the company’s policy forbids First class (it is a non for profit). So I have to have the ticket issued in business class before deciding on upgrading or not…
    Routing would be:
    GVA-FRA-IAD-ORD-ZRH-GVA


    Senator
    Participant

    Apologies Swissdiver, I thought you were London based. The fare from GVA to ORD is:
    PNCZSRW LH P Round-Trip 3128.00(USD)

    NOTE:
    VALID FOR TRAVEL COMMENCING ON/AFTER 01JUL 13 AND ON/
    BEFORE 12AUG 13. ALL TRAVEL MUST BE COMPLETED BY MIDNIGHT ON 08SEP 13.


    Swissdiver
    Participant

    Thanks. This is what I was quoted for a one stop flight, not for the route above (2 stops on the outbound flight).


    PeterCoultas
    Participant

    have you considered there may be a kick-back from the specified travel agent to the “not for profit”?…

    I had similar experiences when working for a US university when the specified agent quoted much higher prices than I could find myself for the same flights…

    when this type of exclusive arrangement is made, the agent seems to take the view the the “not for profit” or in my case the university will assume the agent is treating them correctly…

    hence will not bother, just pay up accepting the small discount on the excessive fare without question !


    Swissdiver
    Participant

    Peter,
    I am not paying :-). They are. And we are talking about a non for profit having revenues over 200 mio dollars and assets, over 300 mio. This being said, not happy to see any form of overpayment on their back.


    RichardB
    Participant

    I had the same thing with a BA ticket. The price from BA Europe (priced in euros) was quite different to the price from BA UK so I had to call the UK and pay in pounds.


    capetonianm
    Participant

    Some points are being missed here. Yield management/optimisation systems are extremely sophisticated and pricing for a journey is determined according to a number of continually changing parameters, above and beyond the obvious ‘supply and demand’. Very simplistically, and just looking at some of the parameters, the following factors apply. to the legacy/network carriers. LCCs operate somewhat differently.

    The point of enquiry can be identified. This means that agent ‘A’ will see availability in a sub-class corresponding to the lowest fare, whereas agent ‘B’ won’t. Agents A and B might be in the same physical location. Therefore, making the same enquiry at the same time for the same itinerary can result in different fares.

    If only one seat is available in a sub-class and the request is for >1, both seats will be sold in the higher sub-class, giving a higher fare per passenger than when the request is for one.

    Fares for a journey AAA to BBB can be more than fares from AAA to BBB and on to CCC. Airlines will do this to promote a particular route.

    The same agent making the same enquiry can get a different result just a few seconds apart due to the bid/offer process which is used to optimise yields.

    Fares are calculated in NUCs (1NUC=1USD) and converted for local sale at fixed exchange rates. This can result in different selling fares where the origin/destination are reversed.

    I think it was Willy Walsh who said ‘passengers are not meant to understand pricing, and if they do, we’ve got it wrong.’


    millionsofmiles
    Participant

    About SITI, SOTO and such.

    A ticket LHR-ORD-LHR issued in the UK is SITI.
    The same ticket sold in Hongkong would be SOTO.

    Generally in this example the pax has no main differences, except he wants to stop over between LHR and ORD.
    In this case he must pay a fare difference for a socalled HIP (Higher intermediate Point) for the SOTO, but not for the SITI ticket.

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