jhooper
Posts: 5560
Joined: Thu Dec 13, 2001 8:27 pm

Why Are One Way Tickets More Expensive Than RT

Sat Mar 08, 2003 10:50 pm

Why do one-way tickets cost more than round trip? What's the logic?
Last year 1,944 New Yorkers saw something and said something.
 
bobnwa
Posts: 4459
Joined: Fri Dec 22, 2000 12:10 am

RE: Why Are One Way Tickets More Expensive Than RT

Sun Mar 09, 2003 12:02 am

The marketing logic is that the one-way passenger has to take the trip, and is willing to pay more. The round trip passenger is more likely to be a leisure passenger and doesn't have to travel.
 
Amir
Posts: 1224
Joined: Thu Dec 30, 1999 8:56 pm

RE: Why Are One Way Tickets More Expensive Than RT

Sun Mar 09, 2003 1:12 am

Hi,

thr OW PAx has more flexibility since a one way is an unrestricted fare therefore it cost more than a inflexible RT. If you take the full fare RT (for example the one year flexible economy fare) it is exactly double the OW.

Brgds
Amir
 
aloges
Posts: 14842
Joined: Tue Jan 17, 2006 3:38 am

RE: Why Are One Way Tickets More Expensive Than RT

Sun Mar 09, 2003 3:19 am

Most OW PAX are on business trips, so they need flexibility, don't pay their flights themselves and AFAIK their companies can get some of the money back. So biz people don't look at the price, they look at the date and at the restrictions.
Don't cry because it's over, smile because it happened.
 
Guest

RE: Why Are One Way Tickets More Expensive Than RT

Sun Mar 09, 2003 3:33 am

The real reason is that a discounted OW trip would mean that pax could forego Sat. Night Stays and Min/Max stays, while paying less for 2 OWs than 1 R/T.
 
MxCtrlr
Posts: 2312
Joined: Tue Nov 13, 2001 11:22 am

RE: Why Are One Way Tickets More Expensive Than RT

Sun Mar 09, 2003 4:00 am

The real reason is the arcane, Byzantine fare structures of the Big Sick Six (props to Joe Brancatelli at http://www.joesentme.com for that phrase). They continue to attempt to perpetuate the myth that flexibility costs more. Proof that this is not the case is UAL with their newly revamped business fares out of DEN and ORD. They dropped their prices by 40% and, lo and behold, their revenue increased by $25M! What would happen if they did that across the board and simplified it even more? Probably more of the same increases in pax loads and revenue!

Let's face some facts:

1). An airline seat costs only so much per seat mile whether it is Monday, Sunday or any other day of the week.

2). The airline seat does not care who is sitting in it and whether they are flying round trip, one way, staying Saturday night in some hotel, etc.

3). Two different pax, paying the same price as a "round trip" pax, each flying one way on the same route, equals the same amount of revenue.

Its time for the Big Sick Six to wake up and realize that they've gouged business travelers, and all last minute travelers for that matter, to the point that they won't be gouged any longer. Failing to realize this and revamp their fare structures will be fatal to them.

MxCtrlr  Smile/happy/getting dizzy
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yago
Posts: 228
Joined: Tue May 14, 2002 4:28 am

RE: Why Are One Way Tickets More Expensive Than RT

Sun Mar 09, 2003 4:09 am

Personnally I would think the question is more why people still buy one way tickets.

You buy a return ticket, don't use the return and save money.

Are businessmen braindead?
 
ConcordeBoy
Posts: 16852
Joined: Thu Feb 01, 2001 8:04 am

RE: Why Are One Way Tickets More Expensive Than RT

Sun Mar 09, 2003 4:28 am

You buy a return ticket, don't use the return and save money.

Are businessmen braindead?


Or could it be that said businesspersons are aware that the moment the airline notices such a pattern, their corporate contract could be terminated on grounds of noncompliance and the airline could then rake them across the coals (in court) for that......
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
MxCtrlr
Posts: 2312
Joined: Tue Nov 13, 2001 11:22 am

RE: Why Are One Way Tickets More Expensive Than RT

Sun Mar 09, 2003 6:54 am

Yago,

That practice is called "back-to-back" ticketing and is illegal under the Contract of Carriage on the back of the ticket. If caught, and the airlines do watch for this practice, the person traveling can be denied boarding, have their remaining, unused ticket portions cancelled, or be required to pay the difference between the ticket value and the full fare price (a costly venture, indeed).

The simple solution here is to follow UAL's lead, and that of HP, and drop the ridiculous fare structures in favor of a two or three-tiered structure - Greater than 14 days advance, 7-day advance, Less than 7-day advance purchase. That would also speed up the reservation process and reduce those costs dramatically. UAL has already shown that lowering fares makes fiscal sense, and the proliferation of LCC's also proves out this point - how long before the Big Sick Six wake up from their 1990's-boom-induced haze and realize that they cannot charge people through the nose any longer?

MxCtrlr  Smile/happy/getting dizzy
Freight Dogs Anonymous - O.O.T.S.K.  Smokin cool
DAMN! This SUCKS! I just had to go to the next higher age bracket in my profile! :-(
 
mrlineguy
Posts: 111
Joined: Thu Mar 28, 2002 4:12 am

RE: Why Are One Way Tickets More Expensive Than RT

Sun Mar 09, 2003 1:06 pm

Not all one-ways are more expensive than a roundtrip. On AirTran all fares are one-way and no Saturday night stay is required! So two one-way tickets equals a round trip, and it all depends on how far in advance you book!

Regards,
Kevin
AirTran CSA/RAMP
MDW
More right rudder...
 
ndege
Posts: 201
Joined: Thu Mar 06, 2003 1:23 pm

RE: Why Are One Way Tickets More Expensive Than RT

Sun Mar 09, 2003 1:12 pm

With TZ there is no advance purchase requirement, no minimum stay. Fares are purely availability-driven up until departure, and no domestic one-way fare can be higher than $299 before tax.

Sure more money could be made with policies more inline with the bigger carriers, but this seems to work and seems to increase last minute purchases for them because the price is literally half that of other carriers in some cases.

BL
 
yago
Posts: 228
Joined: Tue May 14, 2002 4:28 am

RE: Why Are One Way Tickets More Expensive Than RT

Sun Mar 09, 2003 4:58 pm

Well everybody I know who have only used the return ticket just one way to save money have never had any problem with the same airline afterwards...

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