> The reason behind hidden city fares is, the price of SFO-NYC-BTV is for the SFO-BTV market, to compete with other airlines' SFO-ATL-BTV, SFO-ORD-BTV, SFO-What

> The reason behind hidden city fares is, the price of SFO-NYC-BTV is for the SFO-BTV market, to compete with other airlines' SFO-ATL-BTV, SFO-ORD-BTV, SFO-Whatever-BTV or SFO-BTV direct flight. It has nothing to do with SFO-NYC market, just for this particular airline it happens to route through NYC. It discounted more than SFO-NYC market because competitions on that market. In price disparity situations as an outsider, its impossible to determine whether the lower price is because based on competitive pressure (as you claim) or whether the higher price is based on customer's willingness to pay (as I claim), because both imply that the other is the "normal" price absent those features. Its likely a little bit of both. What is the same is the economics: costs in both industries are primarily based on miles that they took you. Prices are based on what they think they can get away with charging you. The more they know about you (or infer based on the data they have and what you are trying to do) the more chances they have to charge you higher prices because they think you can afford it.