All posts in Airlines

Don’t get caught by airlines’ code share ticket price mark-ups

ExpertFlyer Hot Topics — Where the Rubber Meets the Runway

Understanding esoteric subjects, like code sharing, yield management, and confounding airline pricing schemes could easily become a full-time job for the diligent. With the help of former pilot, air travel and insurance expert, Jonathan Breeze,  we’ve uncovered — and hacked — a troublesome pricing pitfall among the airlines.

WATCH our Video Interview with Jonathan Breeze

Don’t get caught by code sharing ticket price mark-ups

First, let’s define what Code Sharing is. Wikipedia defines a Code Share Agreement as an aviation business arrangement where two or more airlines share the same flight; meaning that each airline publishes and markets the flight under its own airline designator and flight number as part of its published timetable or schedule. This is a common practice among major airlines belonging to major airline alliances, such as Star Alliance, Sky Team and Oneworld.

So, let’s assume for a moment that you are an American Airlines frequent flyer. You need to fly to Lima, Peru. So, as a loyal AA customer, you go straight to their site to see what’s available.

Departing on August 15th and returning on August 23rd, the results yield a lowest fare of $3,025 for a non-refundable seat in Business Class. In this particular example, LAN Airlines (LATAM Airlines Group) is the operator of the flight. American Airlines and LAN have a code share agreement and are both part of the oneworld Airline Alliance. That said, the assumption would be that the price would be the price, right? But if you visit LAN’s website and query the same departure and arrival information for the dates above, as you can see there is quite a BIG difference in price — $1,834 vs. $3,025.

Jonathan advises air travelers to be mindful and wary of this yield management practice. If you see that a flight is being operated by a partner of your preferred airline, do a quick cross-check on their website to be sure you are getting the best possible price — if they are partners in a major airline alliance your ability to accrue points/miles will not be affected.

Travel insurance is sexy when it helps you beat the airlines

ExpertFlyer Hot Topics — Where the Rubber Meets the Runway

You’ve heard the phrase, “Go Big or Go Home”? Well, Jonathan Breeze, CEO of Aardvark Compare, has his own motto, “Go Non-Refundable and Travel Insure!”. Don’t start yawning because you think this post is about insurance.  Once you wrap your head around Jonathan’s awesome travel hack, you’re going to perk right up.

Did you know that a large majority of companies insist that their employees book Refundable Airline tickets? In doing so, they believe they are enjoying increased flexibility in the event of cancellation or rebooking. Sure, that’s all well and good, but they are paying through the teeth for that allowance — typically three times more than they should be.

According to Breeze, there is a little-known travel hack that will beat the airlines at their own game. “The airlines are robbing us blind with their 3x pricing on refundable tickets. That is the basic math. The seat price for a Refundable flight, particularly when booked far in advance, is typically 3 or 4 times as much as a Non-Refundable flight. You will hear of these Non-Refundable tickets being called ‘Throwaway Tickets’ because if you don’t fly, you may as well throw them away.

The best way to think about Non-Refundable tickets is ‘Inexpensive, yet Insurable’. Not as sexy, I grant you, but certainly, much, much cheaper, most of the time, ” says Breeze.

Simplistically, a Refundable Seat can cost 300% of the price of a Non-Refundable Seat bundled with inexpensive insurance.

So, if one buys a Refundable Round Trip Economy Ticket, say from DFW to LAX in August for a week (6 months from now), American wants $2,100 for a Main Cabin Fully Flexible Seat. It’s in the Main Cabin, but it’s more expensive than a First Class seat.

aarvark compare

So, you bypass this option to seek a more traditional Main Cabin (Economy) seat. And now, this looks like a bargain, after you managed to avoid the $2,100 fully flex seat.

Breeze points out that American wants $1,150 for a Main Cabin Flexible Seat. So, it is flexible, just not ‘fully’ flexible. Travelers may change their flights, not lose all of their money, but they will need to pay for the effort to make the flight change — a $200 change fee.

aarvark compare

According to the US Bureau of Transportation Statistics, the Top 25 US Airlines rake in $3Bn a year in Reservation Change Fees. And $4Bn a year in Baggage Fees.

“If businesses didn’t hate the airlines before, they probably hate them now,” says Breeze.

“But, let’s go beat them at their own game…

Just before I hit the ‘Buy’ button, I, unlike almost every traveler, decide to get creative. Why not buy a Non-Refundable seat, and wrap it up with some ‘Cancel For Any Reason’ Travel Insurance from a Marketplace, similar to what we do at AardvarkCompare.com.

aarvark4

American wants $400 for the Non-Refundable Main Cabin Seat. Add the Insurance, it will cost around $50 — And you’re bulletproof! You have secured coverage for Cancellation (Sickness, Death, Incapacitation etc) – 100% Refund; Cancellation for Work Reason – 100% Refund; and Cancellation for any other Reason – 75% Refund.”

So, for $450 a customer booking that DFW – LAX return has nearly the same level of coverage as the person paying $1,150 for the exact same seat — A $700 savings.

Breeze emphasizes that the person in the $1,150 seat still has to pay $200 every time they make a change. Whereas the person in the $450 seat just needs to throw the ticket away and use their insurance if a flight needs to be canceled.

“However, I haven’t explored why these price discrepancies exist. Normally there is no such thing as a free lunch.

It’s pretty simple – Travel Insurance is based on risk, and the probability of claim.

Whereas flight prices are based on pricing models that try to wring as much money out of a passenger as possible.

And if a company likes to fly some of the Execs in First Class, the numbers become even more staggering. Recently we ran a study that showed a $16,600 saving on a First Class ticket, using this exact same methodology.”

WOW, what big seats you have!

wow logoBoarding Area’s Travel Skills blog posted updates on international discount carrier, WOW Air’s new premium seat offering for travelers flying from Los Angeles, San Francisco and Miami to Reykjavik.

While photos were not readily available, WOW says the seats, known as The BIG Seat, “…is an entirely different seat, bigger with a foot rest and will at first only be in our A330 planes.”

Travel Skills reports that the section will offer 37-inch pitch (vs. 31 in regular economy), and fares for the premium seats will include carry-on bags, checked bags, in-flight food service and priority boarding. Typical economy pricing on WOW includes nothing but the ride and a single under-the-seat personal item.

Read the full post here.

“Did you know…Sisters booted from flight miss dying dad’s final moments?”

allegiant air

In the case of the Allegiant Air crew’s decision to boot sisters off an Asheville, NC-bound flight, the phrase, “There’s no such thing as bad PR,” may not apply. According to Travel Pulse, two sisters have called out Allegiant Air and are seeking punishment for one of the budget carrier’s flight crews after they were removed from a flight hours before their ill father passed away.

The sisters, Debbie Hartman and Trisha Baker, were traveling from  Sanford, FL to Asheville, North Carolina, to visit their father in hospice care on January 1st.

Travel Pulse reports that before the plane left the tarmac, Baker said she received a text message informing her that her fathter had just hours to live. “After getting up from her seat to tell her sister, Baker was told to sit back down by one of the flight attendants.

The situation began to intensify when Hartman began having a panic attack, prompting Baker to confront the crew member.

“(My sister) said (to the flight attendant), ‘You’re being very rude. My father is dying, and I’m comforting her,’ and they said she needed to keep her personal problems off the plane,” Hartman told WKMG.

The sisters said that in a matter of minutes the crew alerted the flight’s captain, who turned back to the gate to allow airport security to remove them from the plane.”

Read the full story here.

 

http://www.travelpulse.com/news/airlines/sisters-miss-dying-father-s-final-moments-after-getting-kicked-off-allegiant-air-flight.html

Top Travel Hacks for 2017

According to Expedia and ARC’s annual Global Air Travel Outlook for 2017, travel hackers may not have to work quite as hard to get air travel deals in 2017.  It seems average ticket prices for economy class are dropping all over the world.  In fact, they haven’t been this low since 2013. Good news!  But wait, there’s more!  We’ve gathered tips and anecdotes from veteran travel hackers and experts to give you a definitive 2017 travel hacking cheat sheet.

WATCH our interview with Randi Wolfson of Skyscanner

  1. Use a VPN and clear your cookies!

David Bakke from MoneyCrashers.com says before you start shopping for travel deals you need to outsmart the search engines. “Make sure private browsing is enabled on your computer before shopping for travel deals – or at the very least clear your cookies. Due to airlines’ use of dynamic pricing, websites may show higher prices if you’ve clicked on them before.”

“It’s not widely known that the price of a particular flight may differ when booked from varying locations. One of the ways around this is to use a Virtual Private Network (VPN) that will allow you to check and compare the fares of the same flight by connecting to multiple countries and then book from the location with the cheapest price. This can save you a lot of money,” says Haris Mumtaz of PureVPN.

  1. Airline gold and credit card perks

According to FoxNews Travel writer and GotoTravelGal.com blogger, Lyn Mettler, one of the best travel hacks for 2017 will continue to be the Southwest Companion Pass, which allows one person to fly free with the pass holder for up to two years. “It’s fairly simple to earn the pass, which is achieved after you earn 110,000 Southwest Rapid Rewards Points. To easily earn the pass, you need to sign up for two Southwest credit cards, meet the minimum spend of $2000 through everyday spending that you can pay off within a month and then earn an additional 6000 Southwest Rapid Rewards points. Once you have 110,000 points, then book a lot of flights without spending a dime on airfare aside from the government required $5.80 per way security fee. My family of four has flown to six destinations within a year for less than $100 per flight using my methods.”

Robert Schrader, a popular travel blogger at LeaveYourDailyHell.com, says credit cards are the key to flying free in 2017, even more so than in 2016. “Now that all major U.S. airlines have finished their race to the bottom—they all use revenue-based mileage earning and have even introduced “basic economy” fares that earn no miles at all—earning free travel via flying is impossible for all but a few travelers.”

“Moreover, with poor airline lounge quality and scant upgrade availability, elite status has little value. Contrast this with generous credit card bonuses, from a recent targeted AMEX Business Platinum offer of 100,000 to 50,000 becoming standard on American Airlines co-branded cards from Citi.”

  1. Best practices for air travel savings

Valerie Bowden, author of Backpacking Africa for Beginners, offers three tried and true best practices for saving money if traveling by air.

  • Reconsider one-way flights. I’ve saved an enormous amount of money by skipping out on round-way tickets. First, airlines make a lot of money with canceled or rescheduled tickets. If you didn’t buy travel insurance, you’re looking at a $200-300 fee. Second, one-way tickets allow you to get better deals. For examples, one time I got a flight from Africa to the US for only $355 (including taxes!). Most tickets within the US cost that amount or more. This is all because I found a quick sale happening that I was able to take advantage of.
  • Take New or Rarely Used Airlines. Another reason why I found such a great sale was because I took Saudi Airlines. It sounds risky. But often Middle Eastern or Developing Countries have great new airlines, and they try hard to promote them. Through sales and special deals, you get tickets much cheaper than you would be taking Delta or Lufthansa.
  • Be flexible. Flights can vary by hundreds of dollars even within a 24-hour span. I like websites that let you search one month at a time because then you can see the best deals. For that, Skyscanner is by far my favorite. 
  1. Housesitting & Hotel Hacks

The ultimate travel hack to cut out ALL accommodation (and often food) costs is housesitting. According to Tanbay Theune, a professional house/ pet sitter and blogger at www.travellingweasels.com, The perks are hard to dismiss. “Most homeowners treat you like a guest. They pick you up from the airport/train station/ bus stop. They cook you a meal or two and leave you some food in the cupboards. All gladly received when traveling on a budget – and even when you’re not! They also show you the area and the secret spots only the locals know.”

James, another devout house-sitter, and blogger at portugalist.com, acknowledges that getting that first house sit can be difficult as you won’t have any references or experience. “The first two I did were actually in the town I lived at the time (Edinburgh). I did them just for the reference. Then, I applied for ones that I was interested in and managed to get several back-to-backs in France. One was five month’s long so, in the end, I was able to spend nine month’s there.”

James has written a list of sites where you can find those opportunities. Of these, Trusted Housesitters is the biggest and it has the most opportunities.

For folks who want to go traditional with their accommodations, Abigail, a travel blogger at Where Abigail Went,  says one of the best travel hacks she knows is this: Check if any of your family or friends are full-time employees of hotel chains. Associates’ friends and family are able to enjoy preferred rates.

“Now that Marriott and Starwood have merged, for instance, you can take advantage of the extended Explore Friends program, which entitles you to book an unlimited number of nights per year for leisure travel at any of their hotels across the world, based on availability. You can save up to 50% off rooms this way, which is a fantastic deal.”

  1. Avoid duty and tax fees at the airport

“I recently bought a blender for my mom for her birthday and had to carry it with me all the way from Australia to South Africa. It’s small enough to fit into my luggage, but when I was going through the boarding gates, they charged me tax on the item. I then saw a guy in front of me going through the boarding gates with a couple of gifts. He paid no tax on the items, simply because they were gift-wrapped. So, to avoid paying tax or duty fees on any items, make sure to wrap them in gift wrapping paper and declare them as gifts!” — Gerrard Hattfield, Flight Factory