Travel Hints & Tips. How the airline industry works.
Back in the 80s and 90s shopping for air tickets was so much simpler. The airlines used to offer 3 fares. One for economy, one for business and one for first (for the airlines that offered it.) Everyone traveling economy for example would pay the same. (so no one was upset for paying more than the person next to them or some cousin who was bragging that paid less…) The reason about this was that when the tickets were “paper” and were physical items most agencies would pre-purchase and then set a price of how much they wanted to sell for the traveling season. (which also leaded to black market too in some cases. Having strong ethnic agencies that used to monopolize their markets, buying huge amounts of ticket stock and selling it to higher prices with huge margin of profit since they could do that. They could buy lots of ticket stock, make reservations and be able to hold them for weeks (can’t do this now), or book fake names to hold the space in flights and then change the name to whoever was traveling since there was so easy and without fees to change the names of the travelers.
What changed?
The airlines hated the fact of scheduling flights that could cost thousands of dollars without knowing if the flights will be full and sometimes sending half empty planes. They removed the paper tickets and changed the game. They introduced the “classes of service”! If let’s say on a flight there are 300 seats, and the cabins are broken down to 30 business class tickets, 70 premium economy and 200 economy tickets, each cabin is broken down to classes of service. Economy for example, those 200 seats are divided to a dozen of different economy fares that change every 9 tickets are sold. Example 9A 9B 9C 9D 9E 9F 9G. The first 9 people will call they will buy at the price of the A class that may be $800, next 9 travelers will pay the higher tier economy, B which may be $900 etc. The highest economy may be at $1800-2000 and this is the same cabin and the same seats that someone paid probably $800 or less. The way this system works, benefits the airlines since the travelers must rush and try to buy way ahead of time to make sure they ll get the lowest economy class of service or else they will end up paying way more. The travelers cant wait till last moment anymore when there was only one economy fare out there. So it is a game between all of us the travelers. Whoever calls first and the earliest gets the good fares. On top of that, when you make get a reservation now days, you cant hold it for more than 1-2 days. (before the agents could hold them for weeks). Not to mention the penalties. Most tickets are non refundable (with an exception of death). All tickets have penalties when you try to change them and the list going on. Keep in mind in domestic and international tickets, the lowest ones (lowest classes of service) come with some harsh rules behind them. Such as you don’t get miles or you can accumulate a very low amount of them. You are not allowed to travel with a luggage (unless you pay extra at the airport). Usually those tickets are non refundable and non changeable. (If you must change something, then you lose the ticket and you have to buy new one). Not to mention you can pre-select your seating assignment.
When buying tickets be very careful. For domestic traveling always go directly to the airlines. They keep that portion of market for themselves. Which means, you aren’t going to get a better deal anywhere else. For international traveling though, all the airlines are giving a big portion of their deals and discounted fares to consolidators and wholesalers that they provide smaller agencies and websites with airfares. So when it comes to international traveling, then you may get a lower fare from an A Airline via an agency or a website than the airline itself. (Because the A Airline may have an agreement with the B travel agency to give them the right and sell their discounted deals). Many are complaining about the fares and fees. Well traveling is not a cheap “sport” any more. The way it goes, in a few years only the wealthier ones will be able to travel and much harder for the lower middle class folks. As about the competition, well, someone may say “but there are so many airlines”. True, but most of these airlines have merged into bigger alliances. The world’s major carriers have merged into 3-4 big groups that they expanded their “city service networks” and share price and policies. So instead for 20-30 airlines, they are basically 3. So for us the consumers, we get the one or the two of them from each city. (this mean we get 1 or 2 fares to pick from) The one or the other airline alliance. (some major cities are luckier because they may get all 3 alliances plus some other ethnic carriers that don’t belong to any of the big groups and they are just offering an extra choice of airfare.
Seating Assignment has become a joke too now days. It used to be free, yet the past years the airlines discovered this idea to sell the seating pre-assignment. You buy your tickets on April to travel in June and you want to assign the seats. You have to pay a fee. (Makes me wonder what we will pay next). Luckily you can go get the free seat assignment at the airport the day of your departure. Travel insurance. Often I get asked about it. Another way for the agencies to make profit. Most airlines and the trip insurances waive and forgive penalties if you are very sick. But only if you are sick. Neither the airlines nor the travel insurance will cover you for any other reason. (yet many don’t realize this and buy insurance anyways). Some major airlines will cover you and waive the fees if you are really sick, so no reason to buy any insurance. Unless of course you booked with one of the few carriers that do not accept medical reasons for cancellations or changes. Then it is worth it. Although most of the times it is a waste of money. You end up paying way too much and sometimes it is not needed if the airline covers you for medical reasons anyways. Nothing is guaranteed either. Penalties, fares, fees, all are subject to change. Even your paid seating assignment. Basically the airlines under their guidelines can do anything they want and you can’t do a thing about it.
When you try to book keep in mind to search for at least 4-5 months in advance from the month you want to travel. The airlines have introduced this term called “advance purchase” which it works to discourage travelers and overcharges them if they try to call within a week or two from their desired departure date to buy tickets. If let’s say an economy ticket cost $1000 (if you book it a month or more in advance). If you try to buy the same ticket within three or four weeks, or like sometimes people do, within one or two weeks the price skyrockets. That same ticket ends up costing $2000-$3000. So try avoiding booking within a week or two and last minute tickets. It was a time that worked well for deals, but not anymore. I am sure there are certain exceptions to all the above but this is how the airline industry works now days, the majority of the times. Hope it helps. Good ticket hunting.
Submitted September 28, 2017 at 03:07PM by AndrianSands http://ift.tt/2ftDrSy

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