YYZflyboy
Topic Author
Posts: 59
Joined: Sun May 27, 2007 9:00 pm

Why are airfares EX-SIN so expensive?

Fri Feb 02, 2018 3:33 am

Since someone did ask about why airfares ex-EU were so much cheaper than from US side for flights between EU and US, I'm wondering why prices ex-SIN were always up to double the prices coming out of North America. This is especially true for flights between YYZ/YVR/JFK/ORD to SIN.

For example, YYZ to SIN is roughly $1,100 CAD (CX or BR, less if it was on MU or CZ). SIN to YYZ would be at least $1500 CAD upwards for the same pair of flights, but originating in SIN.
 
WPvsMW
Posts: 888
Joined: Thu Mar 23, 2017 7:30 pm

Re: Why are airfares EX-SIN so expensive?

Fri Feb 02, 2018 3:44 am

Simple economics of price elasticity. SQ et al. charge more for POS in SIN because... people originating from SIN buy them.
 
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zeke
Posts: 12151
Joined: Thu Dec 14, 2006 1:42 pm

Re: Why are airfares EX-SIN so expensive?

Fri Feb 02, 2018 4:36 am

CAD$1100 is pretty cheap to fly 12 time zones
Human rights lawyers are "ambulance chasers of the very worst kind.'" - Sky News
 
dredgy
Posts: 210
Joined: Fri Jun 16, 2017 5:13 am

Re: Why are airfares EX-SIN so expensive?

Fri Feb 02, 2018 5:00 am

Home carrier advantage.
You'll see this in basically every market in the world. In another thread there's someone asking how to get from Germany to Australia using mostly A380s and that he was considering flying Qantas because it was so much cheaper than Lufthansa. I countered with Lufthansa is actually very cheap. The difference is that:
a) I am Australian. Qantas has a strong brand presence, high brand loyalty and premium image in Australia. So it is much more expensive for me to fly Qantas than Lufthansa.
b) He is German. Lufthansa has a strong brand presence, high brand loyalty and premium image in Germany. So it is much more expensive for him to fly Lufthansa than Qantas.

Same thing ex-SIN - SQ basically sponsors the whole country, so brand image is excellent. Singapore also has quite affluent consumers and the combination allows them to charge a premium. Flying from the Europe TO Singapore they aren't on home soil and can't rely so much on their brand image so they have to price more competitively.

While there are dozens of other market factors, you will usually pay a premium to fly your home carrier.
 
ei146
Posts: 146
Joined: Sat Jan 09, 2010 9:54 pm

Re: Why are airfares EX-SIN so expensive?

Fri Feb 02, 2018 7:47 am

And smart travel agents are very aware of this. If I have to go somewhere more often I often get two return tickets from my company travel agent: Ticket 1 from home on the foreign carrier, and ticket 2 from the remote place on the home carrier. So on the first trip's outbound leg I use leg 1 of ticket 1, for the return travel leg 1 of ticket 2. And for the second trip the second leg of both tickets is used. Sometimes the second leg of a ticket goes unused if a return ticket is cheaper than a one-way-ticket.

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