US Airways Ripoff

[AndyZ]

I don't usually post here anymore, but this needs to be brought to the attention of more people.

Fly US Airways in and out of Philadelphia from Pittsburgh on Jan. 4, and the nonrefundable round-trip fare would be $118, before taxes.

Take those same nonstop flights a week later, and the US Airways fare jumps to $698.

Information on fares was collected Monday afternoon on the airline's website.

Why the reason for the change?

Southwest Airlines, the only major competitor to US Airways on that route, will end its nonstop service between the two cities on Jan. 8.

Read more: http://www.post-gazette.com/pg/11333/1193300-455.stm#ixzz1f6c3Aogt

[Oniya]

I suspect that the predictable reaction to this increase will be less people taking the flight - between TSA and the price gouging, even a business traveler is more likely to use the corp-account to pay gas and turnpike fees.  If US Airways wants to keep the route, they'll have to drop prices.  If not, then they'll fold on the route, opening up the opportunity for any other airline to pick it up at a more reasonable price.

[Beguile's Mistress]

If you continue to read the article you'll see that Southwest, the only competitor, is dropping that route.  They were losing money on it and passengers were opting for U.S. Airways because they offer advance seat selecton, early boarding and frequent-flyer miles.

The price jump is excessive but when you're the only game in town and you cater mostly to business travelers on a run you take advantage of that.  The cost of the ticket is justifiable on an expense report when you consider that nearly a day is wasted in travel between Pittsburgh and Philadelphia and more so in winter weather.

[Oniya]

My point is that if the price jump goes beyond what those travelers consider 'reasonable', passengers will find other means of transport.  US Airways may make some extra money off of this in the short run, but they'll eventually have to find a balance that maximizes their returns.  If ticket sales stay constant - then they know people are willing to pay.  If they drop off after the 'Crap, it's too late to make other arrangements' period, those prices should start coming down to re-attract the customers.

[Callie Del Noire]

US Airways isn't the only one that does it. You see this a LOT of times. Particularly when a 'fortress Hub' is formed. IE an airport with not too many choices into and out it. (typically when it's 80% or so of one airline)

You might get a sudden drop in airline rates, particularly when an airline wants to run a rival who has higher costs out of the area, followed by a much larger price jump when the rival has to withdraw from the local market.

It's 'good business'.

[Torch]

Mr. Torch flies that exact route with Useless Airways. His company's corporate headquarters is in Pittsburgh.

They'll pony up the additional fare for corporate travel. It's still cheaper than maintaining a corporate jet, which they got rid of two years ago as a cost-cutting measure, much to Mr. Torch's dismay as he now has to fly commercial with the unwashed masses.  ::)

[Callie Del Noire]

My folks live near Charlotte, NC.. so I have to contend with US Airlines 90% passenger traffic thru the hub. It makes for an amazing amount difference in prices. I had the choice of a $400+ ticket through US Airlines (1 stop) and a $288 ticket (2 stops) through another airline.

[Beguile's Mistress]

I know it can rankle with a lot of travelers.  $698.00 Pittsburgh to Philadelphia and $411.00 Pittsburgh to Sacramento. 

U.S. Airways isn't going to fill the plane either.  They were at about 75% before and SW was nearly empty.  The amount of business they pick up won't be much.   I don't recall how many flights there are a day Monday thru Friday but the benefit is an early morning flight one way and a late afternoon/evening flight the other gets the trip done in a day with no overnight expenses.

[Callie Del Noire]

True, but on Fortress hubs airlines pay for gates they KNOW they won't be using all the time. If they have a lease or hold on a gate, that is one that their rivals can't use.

[OldSchoolGamer]

This pretty much fits the pattern of the Peak Oil-caused decline in civil aviation.  More and more smaller airports are facing reduced service, or no service at all. 

This is why we need to revive rail service in America.

[Serephino]

Honestly, if you factor in the price, the time and hassle it takes to go through security, and the time spent boarding and getting off the plane...  It would be easier to drive.  I don't live that far from Pittsburgh and when we go to my aunt's in Philadelphia it takes about 5 hours.   

[Torch]

Honestly, if you factor in the price, the time and hassle it takes to go through security, and the time spent boarding and getting off the plane...  It would be easier to drive.  I don't live that far from Pittsburgh and when we go to my aunt's in Philadelphia it takes about 5 hours.   

Business travelers find it easier to work while they are flying, even on short hop trips like PHL-PIT.

One cannot go over the fine print on a $50 million dollar contract if one is driving 70 mph on the turnpike at the same time.

[Dashenka]

Airline pricing is very complicated. It's about so much more than 'filling up' an airplane. That aside, there is an old trick some airlines use on their website when you book tickets. I'll try to explain.

You want to go from point A to point B. You like US Airways so you go directly to their homepage and search for your route and it gives you a price. Then, obviously, you search the net and other airlines for a cheaper ticket. You come back to US Airways, they remembered your IP adress somehow and the website thinks 'Hey that person REALLY wants to go there, let's increase prices a bit". You see the new price, get confused, look at the other prices again and when you come back again, they raised prices again.

I'm not saying all airlines do it but it's a trick especially used on medium to short flights at which the company knows they won't be making a lot of profits on.

A second thing you have to keep into consideration is that the earlier you book, the cheaper the flight. If you book one or two days in advance, the website will think the same as above. You'll pay more because you HAVE to go on that day.

Business travellers and First class passengers have enough money to spend that they don't care. (In general)

All airlines rip you off. No exceptions, cause flying is sexy and cool so people pay for it. If you don't want to be ripped off, don't go.
I'm not trying to make it right but it happens, so you might as well accept it because it's not going to change.

[Oniya]

In this case, the search was first for an earlier date - meaning that the 'book in advance' benefit shouldn't have been an issue.  If anything, the 'book in advance' benefit makes the price increase on the later flight even more egregious.