Ansett767 From Australia, joined May 1999, 1021 posts, RR: 2 Posted (8 years 5 months 3 weeks 6 hours ago) and read 2278 times:
I was looking at one way fares from SYD to KUL and noticed they were $533 +tax on MH.
However, one way form Syd to HK on MH via KUL is actually CHEAPER - $519 + tax on MH
Why is this? it would be in my favour to buy the trip to Hong Kong (pending no luggage checked in) and only use the trip as far as Kuala Lumpur (ok so its only a saving of $14 but if it were more- e.g. Busines class, or long trip?)
Kiwiandrew From New Zealand, joined Jun 2005, 8765 posts, RR: 13
Reply 1, posted (8 years 5 months 3 weeks 6 hours ago) and read 2264 times:
lot's of airlines do this , it appears illogical at first glance , however the way it works ( very roughly ) is this .
using MH as an example
they offer the convenience of a non stop SYD-KUL flight , people will often be prepared to pay more for this
for SYD-HKG pax , MH do not offer the convenience of a non-stop service , so to persuade people to use them they have to be priced more competitively.
It is a delicate balancing act for yield management , they are trying to gain extra revenue that they would not otherwise get , but still trying to leave enough seats available for the higher yield O&D traffic , for this reason the cheaper through fares will be offered in the lower yield subclasses .
Go to a travel agent , or online and you will see many instances of this where it is cheaper to fly through a place than to it
Moderation in all things ... including moderation ;-)