Business Tricks the Airlines are Using for Profit

This is more of a general awareness topic to help you realise how airline CEOs’ minds are wired. My parents have noticed two off their tricks and they are:

Increasing ticket fares when school vacations start and end here in the UAE where there is a HUGE expatriate population. This works as many of us will be spending vacations in our native places and we will be booking tickets around the beginning and ending of vacations so they can get a plane load of profit.

Deliberately overbooking flights then asking us to switch to later flights in the same airline which haven’t been fully booked and giving no option to cancel the ticket.

If you have any other tricks to talk about, post them here.

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Not to mention the massive change fees airlines impose and when you keep looking at a certain airfare, they up the price a little bit.

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It is a way to make business great. It may seem sneaky but from a business view I think it’s clever. In Australia when you have a big football event, Qantas and Virgin are all to raising the price for tickets to the event place as people will pay anything to get there quickly and fast to see their team win.

Deliberately overbooking flights I have never encountered. However I won’t be surprised if some airlines do that.

Yet I can’t really say much because when I fly to YSSY or YSCB and then back home I never have had anything special unless you call skiing in the Australian Alps a special thing to do.

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Etihad Airways did that overbooking thing. Are they trying their best to stain their reputation just for a few thousand AED or whatever?

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the raising prices isn’t a bad trick they need to make money somehow from the huge demand of flights during the summer

overbooking flight deliberately, now that’s wrong

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Emirates does it as well. On season fares are nearly double that of off season.

Another thing emirates does is charge lesser fare for flights inbound to Dubai and charge comparatively way higher for flights outbound from Dubai. Their fares have to be appealing to competitor airlines customers of other countries you know.

Virgin Atlantic are notorious for the half term jump in prices, especially to Orlando.

It’s cheaper to take your kids out of school a week before or after school holidays and pay the schools absence fine.

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In Iran, Airlines increase travel fees in Esfand and Farvardin (the months after and before the new year celebration) when there are the most travelers.

All airlines over book their flights on purpose !

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Overbooking is used as there are, statistically, a number of ‘no shows’ either from flexible bookings or missed connections. This statistical

The companies would rather take the hit for a couple of re-booked flights than fly with empty seats.

Standard practice for scheduled airlines.

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Increasing fares in high season is not an bad business trick, this is normal. Same goes for car rentals for example… Overbooking is also done as on certain flights an average amount of people does no show up. Same goes for hotels for example…

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Corrupt and greedy? No. It’s called maximizing your profits for the benefit of the company and its shareholders. There’s nothing shady about it. If you don’t like it take your business somewhere else.

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Supply vs Demand :)

See:

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Almost every airline overbooks their flights. Normally they have it down to a science on how many no shows to expect so nobody gets denied boarding though.

Airlines normally only advertise routes that they’re not filling up enough, or are new. Doesn’t make sense to advertise if the planes are all full.

Well, I don’t get the “benefit of the company and its shareholders” part. After all, would you choose between helping a lot of people save on flights or keep some extra money to yourself?

Businesses don’t exist to save the consumer money. They exist to provide a product or service that makes as much money as they can.

If you had a job, would you turn down a pay increase so it could save the company some money? No, you wouldn’t. Same principal applies. If consumers are willing to pay the higher airfare then airlines will charge that arount. Obviously they can’t charge too high that it causes people to choose not to fly or go with a cheaper competitor …but at the same time they don’t want to charge less than what consumers are willing to pay. Economics 101.

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Economics 101? The problem these days is ethics and integrity have gone out the window in the pursuit of big profits. Economics 101, yes companies must make a profit but then they also have an obligation to give some of that profit in wage increases to workers as prices increase and it becomes more expensive live.

when I played airline tycoon 4 I always set max price at all times because I set that there is only 1 airline HAHAHAHAHAHAH!!!

Hmm, it’s almost like airlines are here to make money. What a novel concept.

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