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Air Fares - Should They Be Capped?  
User currently offlineDrinkstrolley From , joined Dec 1969, posts, RR:
Posted (8 years 5 months 2 days 11 hours ago) and read 2134 times:

Don't know if this has been put up before, if it has sorry!

Recently booked, at quite short notice, to fly from Bournemouth to Tenerife with Thomsonfly in an attempt to get some decent weather!

It was half term week and I gave £1200 for two adults and a child (this included pre-booked seats). The week previous it was 38% cheaper and week after 42% cheaper so it was "hiked" for half term.

I am fully aware that airlines are buisnesses and have very complex methods for calculating airfares etc but like so many industries here in the UK (telecoms, electricity) there has been intervention by the office of fair trading re pricing (i.e you used to pay a fortune to call another mobile phone network) so is it not about time similar was done to the airline industry?

5 replies: All unread, jump to last
 
User currently offlineClassicLover From Ireland, joined Mar 2004, 4634 posts, RR: 23
Reply 1, posted (8 years 5 months 2 days 11 hours ago) and read 2116 times:

Quoting Drinkstrolley (Thread starter):
It was half term week and I gave £1200 for two adults and a child (this included pre-booked seats). The week previous it was 38% cheaper and week after 42% cheaper so it was "hiked" for half term.

They shouldn't be capped, no... it's all about supply and demand. I generally choose to visit other countries in the off season or very close to it, as I dislike hoardes of tourists. As a result, I pay cheaper fares.

Additionally, for big trips home I try to book the whole year in advance or as much in advance as I can to take advantage of the cheapest fares.

Were you holding out for cheaper tickets, and got caught by them going up, or were you unsure if you were going?

The point of it all is that price capping for a plane ticket would be silly. You just need to book smart... and besides, if people are still willing to pay the amount you're charging, then why not charge it?



I do quite enjoy a spot of flying - more so when it's not in Economy!
User currently offlineArt From United Kingdom, joined Feb 2005, 3382 posts, RR: 1
Reply 2, posted (8 years 5 months 2 days 11 hours ago) and read 2114 times:

Quoting Drinkstrolley (Thread starter):
It was half term week and I gave £1200 for two adults and a child (this included pre-booked seats). The week previous it was 38% cheaper and week after 42% cheaper so it was "hiked" for half term.

Unfortunate but if supply is constant (same number of seats on a route) and demand soars, the price will normally rise.

It's a market thing: if people want 5 times as many carrots on Thursday as they want on Wednesday and Friday, and the seller brings the same stock to market each day, the seller can charge a higher price for his stock on Thursday.

My sympathies to you, though.


User currently offlineMEA-707 From Netherlands, joined Nov 1999, 4313 posts, RR: 36
Reply 3, posted (8 years 5 months 2 days 11 hours ago) and read 2110 times:

Yes, it's absolutely decent that airlines hike fares during holidays. For them it's a way to compensate slow loss making weeks, and it even benefits the passengers a little; the ones who really want to travel during a holiday can still find a seat because the ones who are more flexible and/or keen on limiting their expenditures choose different (cheaper) weeks to fly on.
Holiday flights are not something like healthcare which needs a government control to keep it accesible for everyone. If you don't make enough money, bad luck and try to see the beauty of your own country.



nobody has ever died from hard work, but why take the risk?
User currently offlineJoost From Netherlands, joined Apr 2005, 3167 posts, RR: 4
Reply 4, posted (8 years 5 months 2 days 11 hours ago) and read 2102 times:

Quoting Drinkstrolley (Thread starter):

I am fully aware that airlines are buisnesses and have very complex methods for calculating airfares etc but like so many industries here in the UK (telecoms, electricity) there has been intervention by the office of fair trading re pricing (i.e you used to pay a fortune to call another mobile phone network) so is it not about time similar was done to the airline industry?

No.

Government intervention can be very useful when there is no perfect competition in the markets or when it concerns a primary need. For electricity or water supply, intervention can be useful to protect the primary needs of citizens.

In the telecom industry there are often (illegal) price agreements (once in a while it's on the news again that anti-trust agencies find agreements and give out fines) amongst the different operators. Here, there is a limited number of suppliers and so this is subject ta high risk of price agreements. Also, not everybody can just offer telephone services - you need to have a licence for that, and those have limited availability.

The airline industry inside the EU (+Norway, Switzerland) is very close to perfect competition. Any company having a bunch of 737s can start BOH-TFS. Here, it is just how the market works. Apparantly, you really wanted to go in that certain week and in the end you turned out to be willing to pay a lot more for that certain week. And this is where the companies make their money. If there would be price caps, there would be less incentive to fly it, and the off-season prices would be lower.


User currently offlineDrinkstrolley From , joined Dec 1969, posts, RR:
Reply 5, posted (8 years 5 months 2 days 11 hours ago) and read 2087 times:

Quoting ClassicLover (Reply 1):
or were you unsure if you were going?

It was a last minute thing so I was prepared to part with a lot!


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