vv701
Posts: 5781
Joined: Fri Aug 19, 2005 10:54 am

Have DL Checked International Flight Yields

Mon Nov 07, 2005 12:59 pm

DL are reducing their presence in the US domestic market and expanding their international services. But do they know what they are doing?

At http://www.FareMeasure.com I see, for example, that the lowest return fare on the New York to San Francisco route is $466 offered by CO. In my Sunday newspaper the lowest fare I can find advertised for London to San Francisco (by an unidentified airline) is £280 return ($476). I would have thought that profitability on the New York - San Francisco route would be higher at these prices than London - San Francisco which is obviously much further.

By the way this London-San Francisco fare is interesting to me personally. My first holiday on the West Coast was in 1980. The fare was £4 more expensive 25 years ago at £284 despite quite a lot of inflation in the interim!
 
CVG777
Posts: 1211
Joined: Tue May 02, 2000 6:42 am

RE: Have DL Checked International Flight Yields

Mon Nov 07, 2005 1:35 pm

That fare may be from a company that purchases airline seats in bulk for lower prices, and then sells them slightly higher than the price they paid. It is probably not coming from the airline directly, or if it is, it is probably a special deal with a very limited number of seats actually available at those prices.

Even at lower economy prices, the bulk of revenue from a particular international flight will be from passengers in premium cabins. Airlines can offset some of the losses they make on coach fares through the high business class fares.
 
MarshalN
Posts: 1474
Joined: Sat Sep 03, 2005 9:39 am

RE: Have DL Checked International Flight Yields

Mon Nov 07, 2005 1:42 pm

And for some of these routes it might also be very season sensitive -- I know places like YVR have very low yields during the winter months because aside from the die hard skiing fans from Asia, they don't get a whole lot of traffic, whereas during the summer it's much more busy. This is also reflected in things like hotel prices, where winter rates are about half of summer rates...
 
jetdeltamsy
Posts: 2688
Joined: Tue Nov 14, 2000 11:51 am

RE: Have DL Checked International Flight Yields

Mon Nov 07, 2005 1:49 pm

Quoting CVG777 (Reply 1):
That fare may be from a company that purchases airline seats in bulk for lower prices, and then sells them slightly higher than the price they paid. It is probably not coming from the airline directly, or if it is, it is probably a special deal with a very limited number of seats actually available at those prices.

Wholesaling on domestic fares no longer exists in the United States. There are some companies that deal in frequent flyer award tickets (illegally). But the days of wholesaling are about over.
Tired of airline bankruptcies....EA/PA/TW and finally DL.