Advertise On EU-Digest

Annual Advertising Rates

1/8/15

Airline Industry: Airline Fare Riddle (or Fiddle ?): One Route, Two Prices - Consumers being gouged - by Scott McCartney

There seems no end to ways airfares can confound and frustrate travelers.

Airlines charge different prices for the same trip depending on which direction passengers are flying. For example, the average price paid for tickets on Los Angeles-Honolulu round-trips was $614 if the trip originated in Los Angeles, 7.5% more expensive than the $571 average-ticket price if you started in Honolulu.

That is among the findings of a study conducted for The Wall Street Journal by Airlines Reporting Corp., which processes tickets for online and traditional travel agencies.

International flights had the biggest directional price differences. Between New York and London, travelers paid $2,507 on average if they started in New York and $1,672 if they began the trip departing from London, an $835, or 50%, boost.

Between New York and Tel Aviv, people leaving from the U.S. paid $354, or 28%, more on average than people in Israel—$1,618 if the round-trip began from New York’s Kennedy Airport versus $1,264 if the trip started at Tel Aviv.

“I think the U.S. consumer is being gouged by the airlines, but it’s the nature of commerce,” said Guy Millo, chief executive officer of Da’at Educational Expeditions, which organizes group tours in Israel and has offices there and in the U.S. “There’s no way a 28% price difference between New York and Tel Aviv can be attributed to fewer travelers on a round-trip route. Travelers go both ways.”

Note EU-Digest: Airline companies are ripping off the consumers. Price differences depending on where you book your passage; lower fuel prices not reflected in ticketing; extra charges for services which used to be free of charge, and the list goes on. It is high time Governments and consumer organizations take action.

Read more: Airline Fare Riddle: One Route, Two Prices - WSJ

No comments: