Fuzzman777
Topic Author
Posts: 45
Joined: Sat Sep 08, 2007 1:45 pm

UA Airfare pricing structure/strategy?

Mon Dec 29, 2008 2:27 am

I know that the airlines' airfare system is very complex and changes all the time, but I found something interesting while surfing the 'net(nothing better to do in Iraq!) I was looking at United roundtrips in First Class around, for example, September 2009(sep 20-sep 30 to be exact). The LAX-SYD-LAX trip was over $24,000. But when I looked at a LHR-SYD-LHR with stops in LAX each way, the total came out to $17,000.

My question is why would the LHR-SYD trip be $7,000 less?
and wouldnt the airline just book the ticket as 4 one-way flights in first class?

Thanks in advance

Fuzzman777
 
bbinn333
Posts: 135
Joined: Sat Nov 03, 2007 12:39 pm

UA Airfare pricing structure/strategy?

Mon Dec 29, 2008 2:31 am



Quoting Fuzzman777 (Thread starter):
nothing better to do in Iraq!

Thank you for serving our country.

Quoting Fuzzman777 (Thread starter):
My question is why would the LHR-SYD trip be $7,000 less?

Because they want to fill up all the other seats so the other airlines re jealous!
 Big grin
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LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: UA Airfare Pricing Structure/strategy?

Mon Dec 29, 2008 3:26 am

Not only United, but a pretty universal practice of point of sale pricing. Each country and market has its own dynamics and pricing points.

This happens even domestically. Recently we had to send some employees between LAX-MIA and another group MIA-LAX. The LA origin tickets for each one were about $120 cheaper then the rates available out of MIA on comperable days with the same advance purchase and stay time frames.

And dont think this is only limited to airlines, it applies to nearly everything you can think of. The Economist magazine even showed pricing of McDonalds BigMac sandwiches across different markets and the huge diversity of pricing points for the same exact product.
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