3 ms·
Demand-based pricing and monopolistic practices. Say SFO to DEN has the big four carriers, each coming in suspiciously close to the exact same price ($199 one
by mchannon 8y ago
Demand-based pricing and monopolistic practices.
Say SFO to DEN has the big four carriers, each coming in suspiciously close to the exact same price ($199 one week out).
Then Frontier decides to run that route, charging ~$99 one week out.
Three or four of the big carriers will magically drop their fares to match Frontier's.
Frontier, the most mercurial of airlines, will then drop their SFO-DEN route because it's no longer profitable (or shut down completely as they've done a couple times). The big four go back to their old fares or higher.
Now if I wanted to go SFO-SLC to see the Jazz play, that might be $299 one way. If I book the SFO-DEN on Delta, whose hub is in SLC, I get the benefit of the Denver fare. Most people would not think to do that (because they check bags and don't have time as cheap as I do).
Alternatively, one of the cheapest destinations is often Cleveland (go figure). Maybe SFO-CLE is $99 for the few people (and Skiplagged) who go looking for it. That might get you the ability to go to a dozen US cities for $99, all of which are way more expensive when booked directly.