Why does SQ charge less for one extra flight?

[SCM]

I know that connecting traffic can cost less, and airlines price flights cheaper for inconvenience of extra connections, but I think this is a bit ridiculous.

All these flights are exactly the same dates (apr 25 -> jun 10) from Sydney.

Let's say I want to do SYD -> FRA return, ok it's 7k ~ 8k depending on total trip length, fine, but suddenly if I fly SYD -> MUC and then add an LH flight from MUC -> FRA, it's now 7.5 ? And this is for the same favourable times that they are otherwise charging 8k.



Now the really funny thing is, the exact opposite situation is also true flying into MUC.



From my perspective, I usually take a flight to a big hub and then fly away to whatever other destination anyway. So it seems like SQ is literally undercutting themselves and saving me double money - on the initial flight, and then giving me a free onwards flight (because this is valid for many other cities in Europe).

What is the logic here?

 

[MELso]

It's down to competition with direct connections. LH (and SQ) flies from SIN-MUC (and SIN-FRA) nonstop, so SQ has to price SIN-FRA-MUC (and SIN-MUC-FRA) cheaper as it's less attractive.

An example: I needed to book a flight from MXP-SIN. The 'value' fare when I booked was 600 euros. But adding on a SIN-BKK a week later dropped the price to 420 euros. Once I got to SIN, I cancelled the second leg, getting 40 euros tax back, and saved 220 euros. This is because SQ wanted to make its indirect MXP-BKK an attractive choice whereas they knew that they had the best option for someone flying MXP-SIN.

 

[AIRwin]

Once I got to SIN, I cancelled the second leg

Online or by phone? No checked baggage?

 

[CaptJCool]

fly More Pay Less

airfare pricing isn't based on cost plus margin

the dark arts of maximising profits on each and every flight

the algorithm appears to be based on

1/ demand on a particular direct route
the popular routes command a premium price
for example QF Melb -Syd Full flexi is $617 - QF Melb via Syd to OOL is $486
you can get on the 11am Melb-Syd on 13 Sept for $390, but you can get on the same Melb-Syd going to OOL and its just $275

2/ a specific flight time - so that's a function of low supply / high demand for that specific flight - we see this often with major sporting events especially those like the AFL where finals matches only come out about a week in advance (where these dates are known well in advance, people can work around avoiding the finals tax) although any sweep of any weekday Syd-Melb will see the cheap seats at 6am and 10pm with those between 3-6 at much higher pricing

3/ some married segment logic applies in the case of some 'connections' and not others thus creating the hidden city ticket price

 

[MELso]

Online or by phone? No checked baggage?

Online, and I had checked baggage. (The SIN-BKK flight was one week after the MXP-SIN flight.)

 

[hossein_au]

Online or by phone? No checked baggage?

It looks like the flights were one week apart, so luggage being tagged all the way through must not have been an issue.