Price discrimination - tourists pay 5x what locals pay

[Mattg]

I am travelling to Peru in February next year and am currently in the process of booking domestic flights. I was, and still am quite surprised by the massive price difference between what Peruvians pay and what foreigners are charged. I am aware that this practice occurs around the world, with various airlines, e.g. Qantas often charge Australians 2-3x more to fly to JNB than they charge South Africans to fly to Australia and back. This is not the only route or airline where this occurs, but you get the idea.

So, for my trip I want to book two domestic flights - Lima to Cuzco and Juliaca to Lima.
On LAN's Peru website (which is only available in Spanish), I got this quote:


US$121.05. The only catch is: this fare is only available to Peruvian residents. There is a warning that if I cannot prove residency in Peru, I may be subject to a surcharge of US$177 per flight or be denied boarding. So, I have no choice, as an Australian, but to book from the Australian website.

For the exact same flights, but from the LAN Australian website, the quote is US$624!! WTF?

That's more than 5x the price for exactly the same thing! You wouldn't know unless you'd got the quote from the LAN Peru website, but this is blatant price discrimination to the extreme.

In LAN's defence, they are not the only airline which does this in Peru, and certainly in the world. Most other Peruvian airlines also rip off tourists. Peruvian Airlines do not discriminate on price, but they don't fly to Juliaca, which makes using them a bit difficult. LAN does offer an "Airpass" for cheaper domestic travel if your flight into the country is on LAN (which mine is) but you must take a minimum of 3 domestic flights, and the prices, although cheaper than regular tourist prices, are still considerably more than what locals have to pay.

Firstly, does anyone have a solution - how can I book these domestic flights in Peru (I don't mind which airline) without paying an arm and a leg?

2. Has anyone else experienced extreme price discrimination such as this as a tourist/foreigner? Not just in Peru, or even when buying airline tickets, but while travelling in general?

 

[Melburnian1]

Have you thought of giving the airline a miss and instead (if it is still running) travelling by train? It's slow but scenic, if it is still running (I have done it, but not for a while):

Train Cuzco to Puno

 

[Mattg]

Have you thought of giving the airline a miss and instead (if it is still running) travelling by train? It's slow but scenic, if it is still running (I have done it, but not for a while):

Train Cuzco to Puno

I have had a look at that. I am intending to take either the train or tourist bus from Cuzco to Puno, but then need to get back to Lima. Hence why I am looking for flights Lima to Cuzco and Juliaca (near Puno) to Lima.

 

[nickfromeastryde]

You could just book on the local site and pay the surcharge if it arises - still less than half the non resident amount

 

[Mattg]

You could just book on the local site and pay the surcharge if it arises - still less than half the non resident amount

You're right, it is still cheaper, but it says (albeit in Spanish) that if I cannot prove Peruvian residency then I may be denied boarding. Not sure I want to take that risk :-|

 

[burmans]

You're right, it is still cheaper, but it says (albeit in Spanish) that if I cannot prove Peruvian residency then I may be denied boarding. Not sure I want to take that risk :-|

Just had a look on Tripadvisor and the word there is they make you pay the surcharge rather than refuse to let you on. But they also say there should be a non resident option and suggest you should check out US and Canadian sites as prices seem to vary a fait bit between sites.

 

[dajop]

May be worth looking at award availability and using QF points if you have any spare, or buying AA miles for the sector? As domestic may not take that many miles.

 

[Sprucegoose]

You're right, it is still cheaper, but it says (albeit in Spanish) that if I cannot prove Peruvian residency then I may be denied boarding. Not sure I want to take that risk :-|

How would they ever know?

 

[Mattg]

May be worth looking at award availability and using QF points if you have any spare, or buying AA miles for the sector? As domestic may not take that many miles.

I am certainly willing to spare some QFF points but I can't work out how to book these flights using them. I can't seem to be able to find Lima-Cusco or Juliaca to Lima on the QF site.

 

[Mattg]

How would they ever know?

They may never know, but I don't look or sound like a Peruvian, don't speak any Spanish and I have an Australian passport

 

[Mattg]

Just had a look on Tripadvisor and the word there is they make you pay the surcharge rather than refuse to let you on. But they also say there should be a non resident option and suggest you should check out US and Canadian sites as prices seem to vary a fait bit between sites.

Thanks for the suggestion! The US site quotes US$357 which, whilst still ridiculously expensive, is a fair bit cheaper than the Australian site.

 

[Happy Dude]

2. Has anyone else experienced extreme price discrimination such as this as a tourist/foreigner? Not just in Peru, or even when buying airline tickets, but while travelling in general?

Where to start? Numerous examples in Russia, China, SE Asia spring to mind but the two worst examples I'CE experienced were:

1. India. You pay USD $20 to see the Taj Mahal, locals pay 20 rupees. It's the same at other sights (ellora. Ajanta, etc. state sponsored system too.

2. Sri Lanka. Woman pealed off price label in front of me then charged me 10x the label amount.

Imagine the uproar if in Australia we charged a rich guy from Europe a few more dollars to visit the reef?

 

[footy99]

Whenever I am in Peru I fly with TACA. My most common flights are between Piura, Lima and Cusco, and I can't recall ever paying more than about $150 for a flight.

I do recall this issue coming up in research, but in maybe 25 flights now, I've never had to pay a surcharge or been refused boarding (last trip June 2012).

Same deal flying to/from La Paz, although that is a more expensive flight ($250 odd from memory).

 

[Archphoto]

Similar situation in TH - visitors pay a higher price for entering tourist sites (often 500% more) whilst locals pay very little (or nothing - The Grand Palace is one example). Now that I have a work permit, I'm considered "Thai", but it is annoying at times. Just one of the things that make visiting other countries interesting.

The flights do seem to be a price gouge though - wonder what the ratio of locals:tourists is on the flights?? Locals not able to afford the "full price" so the tourists are expected to pick up the slack maybe?

 

[Mattg]

I ended up booking on the U.S. site as two one-way flights and paid around US $330 all up - that's still nearly 3x what locals pay but about half of what they wanted on the Australian site. Thanks for the tip burmans​.

 

[Mattg]

Where to start? Numerous examples in Russia, China, SE Asia spring to mind but the two worst examples I'CE experienced were:

1. India. You pay USD $20 to see the Taj Mahal, locals pay 20 rupees. It's the same at other sights (ellora. Ajanta, etc. state sponsored system too.

2. Sri Lanka. Woman pealed off price label in front of me then charged me 10x the label amount.

Imagine the uproar if in Australia we charged a rich guy from Europe a few more dollars to visit the reef?

Wow! Not quite as extreme, but I was once in a store in Brisbane where I got to the counter and the lady actually peeled the price sticker off in front of us and said we couldn't have it as it was the wrong price, then tried to charge us double! Not sure if that constitutes price discrimination or incompetence, though..

 

[kelvedon]

The Swiss do it too. They get a 50% discount on SBB train tickets via a day pass free from their local council or by purchasing a yearly 50% discount card. Their argument is why should the local taxpayer subsidise the tourist leisure travellers on a nationalised transport service. ( not sure that argument applies to The OPs posting though)

 

[trooper]

I see the OP's point about different prices for residents/non-residents on the SAME flights.... but can't see the connection he/she obviously feels exists with different fares for different points of origin... (example given was JNB-OZ v OZ-JNB pricing)

That is quite different.

 

[Mattg]

I see the OP's point about different prices for residents/non-residents on the SAME flights.... but can't see the connection he/she obviously feels exists with different fares for different points of origin... (example given was JNB-OZ v OZ-JNB pricing)

That is quite different.

The JNB example was just an example of another form of price discrimination, but you're quite right, Australia and South Africa are different markets/points of origin. My point was simply that it's not just LAN which does this kind of thing.

 

[footy99]

Did you check TACA? They'd have to be cheaper than $330. Unless you are after Qantas SCs.