QF anomaly in MNL pricing

Discussion in 'Cheap International Airfares' started by Melburnian1, May 2, 2014.

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  1. Melburnian1

    Melburnian1 Enthusiast

    Jun 7, 2013
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    QF presently has another of its website international sales on.

    SYD - MNL return is from $888, yet MEL - MNL, which involves a domestic flight between MEL and SYD to connect to QF19 and from QF20, is $14 less at $874 return for the low season weeks.

    Supermarkets have been known to have differential pricing: in Toorak or Vaucluse, they'll quietly charge a bit more for some items due to the median incomes being higher; in Mildura or Borken Hill, they'll charge more due to freight costs.

    However it's odd that QF fares aren't either the same (it has to compete with PR, which offers nonstops to MNL three days a week ex MNL and four a week ex SYD, the latter the same as QF but not always on the same day) or slightly more for MEL - MNL return (given that 'common rating' has often been practiced ex the Australian east coast, but a slight surcharge might be justifiable given the extra costs to QF of the domestic flight.)

    Of course, MEL airport taxes are a bit lower than SYD's but a passenger ex MEL travelling via SYD has to pay both.
     

  2. serfty

    Moderator

    Nov 16, 2004
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    The fares for MEL-MNL and SYD-MNL may very well be the same, the varience being the Taxes and Levies.

    These can vary at ports for a few reasons, mainly whether one is transiting or having a stopover; transiting being generally less.
     
  3. Melburnian1

    Melburnian1 Enthusiast

    Jun 7, 2013
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    All true serfty, but it doesn't quite answer my question, which is why would an airfare that involves a transit be cheaper when by my occupying a seat MEL - SYD - MEL I am stopping QF from being able to sell those seats to domestic passengers? I am assuming that the domestic legs are full, which may not always be the case.
     
  4. ftm

    ftm Active Member

    Feb 19, 2011
    549
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    Sydney
    Absolutely true. But when I do a fare search in this case, the base fare for MNL is indeed lower ex-MEL than it is ex-SYD.
     
  5. markis10

    markis10 Veteran Member

    Nov 25, 2004
    30,088
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    Transit passengers dont have to pay the $30 fee Sydney charges, just the $10 domestic fee for MEL.
     
  6. Melburnian1

    Melburnian1 Enthusiast

    Jun 7, 2013
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    markis10, again true, but you haven't quite answered my question.
     
  7. markis10

    markis10 Veteran Member

    Nov 25, 2004
    30,088
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    If the base fares are the same I have, apparently they are not, which gets you into an answer only Qantas can but are unlikely to provide, its to do with market forces. Comparing fares from different exercises is a futile exercise, something in the vein of how long is a piece of string.
     
  8. serfty

    Moderator

    Nov 16, 2004
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    Markets I guess - I have been looking at similar for the current HKG sales.
     
  9. Melburnian1

    Melburnian1 Enthusiast

    Jun 7, 2013
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    The only conclusion I can draw is that QF believes that passengers who travel MEL - MNL are, on average, more price sensitive than those travelling SYD - MNL.
     
  10. under the radar

    under the radar Established Member

    Apr 8, 2010
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    I'm thinking ...it's all 'seasonal'...and based on profit/loss.... they wouldn't offer the MEL/SYD/MNL 'special' if the connecting MEL-SYD-MEL flights were already traditionally 'majorly' booked with 'full fare' paying pax...a plane full of 'red e deals'/discount fares in Y/C doesn't really generate a profit...so who cares where they originate from!!! ... 'stimulate' pax to choose QF (and get more 'status credits' in your FF account...every man and his dog is a QFF...7 million and counting!!)
     
  11. serfty

    Moderator

    Nov 16, 2004
    39,042
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    Fare Breakdowns MEL/SYD-MNL

    Results From ITA for NALPH:
     
  12. bdruce

    bdruce Junior Member

    If you are travelling MEL-SYD-MNL, you will be generating a lot more $$ for QF than someone on the domestic flight. However, if they sell the MEL-SYD to a domestic pax and the SYD-MNL to an international pax, they will get more $$ than selling the seat to you (MEL-SYD-MNL). What are the competitors charging from SYD versus MEL? Which flights are forecasted to have empty seats? Lots of factors in determining the price for each seat on each O&D. It can be confusing to the average consumer (but economically sound), which does not assist with building trust between airlines and their customers.
     
  13. Fruitcake

    Fruitcake Established Member

    Feb 22, 2011
    1,680
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    Pretty much - airlines don't set fares based on how much it costs them to provide the service. They set fares based on how much people will pay. If that doesn't turn out to be enough to cover the cost of providing the service then eventually the service will disappear.
     
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