Qantas Fare Increase - 28 July 2010

[futaris]

Qantas Fare Increase

Qantas has today announced fare increases on International, Domestic and Regional routes.

The new fare levels will apply to Qantas International published and retail net fares sold in Australia, Domestic and Regional fares for tickets issued on/after Wednesday 28 July 2010. The fare increases are as follows:

• International First, Business, Premium Economy and Economy Cabins published and retail net fares to increase by 3%; and
• Domestic Business and Economy Cabin fares to increase by 3%;
• Regional Economy Cabin fares to increase by 3%.

Please refer to ‘Latest Fare Changes’ at qantas.com/agents or your GDS.

Any existing bookings, including wholesale and affected Group fares, must be ticketed on/before 27 July 2010 otherwise the increased fare levels will apply.

 

[samh004]

Why didn’t they just say everything to be increased by 3%?

That’s a bit sucky really.

 

[anat0l]

Needless to say, not looking forward to it, particularly if the rest of the market isn't following suit.

Maybe I should get over it; perhaps it's like one of those inevitable things. (After all, CPI is inevitable).

 

[Jeffrey O'Neill]

i bet QF flights into australia are not getting the same increase.

Sigh

If only Ozzies didn't like to travel so much the flights migh be cheaper

 

[Dalescott]

They can do as they like because Australian just keep on accepting this. As far as I am concerned there is no real competition in the marketplace. I will also bet you that the others will follow suit, and increase theirs as well.

 

[gilby08]

They can do as they like because Australian just keep on accepting this. As far as I am concerned there is no real competition in the marketplace. I will also bet you that the others will follow suit, and increase theirs as well.

Your kidding right? No competition?

You do reliase that fares have decreased x% amount in the past x years?

 

[JohnK]

I don't quite understand the justification for the airfare increase.

Even CPI is not really a good enough excuse. Just ask those people who are not getting a wage/salary increase this year.

In this day and age the only real explanation would be greed....

 

[dede]

Two years ago over Christmas I tried to book MEL-JFK return with QF and the best fare was around $3500.

This year I'm travelling over Christmas (same route) for around $1800.

I rest my case your honour!

 

[QF029]

I don't quite understand the justification for the airfare increase.

Economics. Supply. Demand. They are running a business after all.

 

[dede]

Exactly. It's a cut throat market out there at the moment so I'm making the most of the cheap flights while I can.

 

[Dalescott]

You are quoting the Aus-US route, which has gone thru deregulation in the past three years. If you would like to look at the Europe market you will see a truly competitive market place. You only have to look at the Euro to Aus, v Aus to Euro, to see so called market forces at work. WE do not have a truly deregulated market place in this country.

 

[gilby08]

You are quoting the Aus-US route, which has gone thru deregulation in the past three years. If you would like to look at the Europe market you will see a truly competitive market place. You only have to look at the Euro to Aus, v Aus to Euro, to see so called market forces at work. WE do not have a truly deregulated market place in this country.

So with all the airlines doing the Aus-euro routes still no competition?

You have AirAsia, QANTAS, Thai, Malaysia, Qatar, Emirates, Etihad, Singapore Air, Cathy Pacific, Virgin Atlantic, and British Airways to a lesser extent.

For the Aus-Us route you have QF, NZ, AA, UA, VA, FJ, DL etc etc.. Seems to be enough competition on ALL routes.

And really it's only 3%, yes it is something but 3% on a syd-mel fare is about $3 only.

 

[anat0l]

And really it's only 3%, yes it is something but 3% on a syd-mel fare is about $3 only.

People will find something to complain about no matter how big it is because you can always find a frame of reference to make a case for it. Yours truly included, but humans are like that.

Allow me to elaborate:

$3 extra for a SYD-MEL fare. That's just under half of the credit card surcharge, which we all loathe. $3 would probably cover a treat for you on DJ buy-on-board (or might come close). If you fly 10 return trips SYD-MEL that's $60 or getting closer to another fare. 3% is also a typical amount chosen for credit card surcharge for those merchants (not airlines!) that impose it.

Let's try something different. 3% increase on international fares. Let's take a Trans-Pacific flight, like MEL-LAX. On sale, these price at about $1100. 3% of this is $33. The credit card surcharge for international flights is $25. $25 probably "isn't much" but people complain bitterly that it's a true rip-off to charge so much for using a credit card to purchase an international itinerary (in fact, I think Choice magazine called this $25 surcharge the shoddiest charge of the year last year).


OK all of that was pretty spurious but don't be surprised (I know I won't) when people start making complaints about a 3% increase because they can make up arguments like the above. At a very basic level, people will say an increase for increase sake (doesn't matter if it's 0.3%, 3% or 33%) is bad, full stop.

 

[medhead]

Well that's lucky I'm getting a 3.9% pay rise from next week

 

[JohnK]

Economics. Supply. Demand. They are running a business after all.

Which explains the increases on 1st July from most service providers in Australia. Or does it? Sydney water, Council rates, stamp duties etc.

Perhaps gullible and monopoly would be much better terms than "Economics. Supply. Demand".

There is no justification other than greed for the current proposed airfare increase. But this is what happens when people are content with their lives and do not care what happens around them.

 

[QF029]

There is no justification other than greed for the current proposed airfare increase. But this is what happens when people are content with their lives and do not care what happens around them.

John - let me explain something to you. Public companies exist primarily to return value to their shareholders. Usually this is done via money. Apart from damaging their brand (which is a possibility), why would they not increase fares if it was commercially sustainable and increased profits?

 

[Smackbum]

John - let me explain something to you. Public companies exist primarily to return value to their shareholders. Usually this is done via money. Apart from damaging their brand (which is a possibility), why would they not increase fares if it was commercially sustainable and increased profits?

I live in Sydney and travel a bit. Mostly domestic but with a smattering of international travel (NZ, US, SEA). If I want to cobble together status credits and FF points there is only one sensible option - Qantas. So they get 90% of my business and I get to book some award tickets to the UK for the wife and kids. Not enough points for me so I give Qantas a call. ~$3.5K. Ouch!. Wait for specials but it's Christmas so fat chance. Decide to book with Q Hols and put the 4 deposits down (with 1.4% CC fee!). Balance due Oct/Nov so at least there is some respite and I will use EFTPOS to avoid the CC rip-off.

But now it seems I have a fortnight to pay unless I want to fork out another $100. I say screw the Qantas shareholders (and BHP, Rio Tinto, etc) as they have market share approaching monopoly levels. Why doesn't the government take a baseball-bat to them like they did to Telstra?

Barring that why doesn't Virgin join Star Alliance?

 

[AnonymousCoward]

I don't quite understand the justification for the airfare increase.

Even CPI is not really a good enough excuse. Just ask those people who are not getting a wage/salary increase this year.

In this day and age the only real explanation would be greed....

OK - use the GDP Deflator then, since that track all changes across I, E and P.

When there's inflation, prices go up. And the fact that some people don't get a pay rise isn't a justification to shareholders not to raise your own prices. I'm sure that QANTAS input's are increasing at a rate approaching 3% (they have to pay wage increases, and increased supplier costs too)

 

[QF029]

I say screw the Qantas shareholders (and BHP, Rio Tinto, etc) as they have market share approaching monopoly levels. Why doesn't the government take a baseball-bat to them like they did to Telstra?

It's a good point especially given that Qantas, effectively is the national airline even though it's privately owned, has advantages that aren't available to say Virgin Blue.

I'm not advocating price rises. My point is you can't blame the company for taking advantage of their market power BUT I think in these cases you can blame the government.

 

[dajop]

I really don't know what the fuss is all about. This will most likely affect those travelling on non red e-deal fares, but 3% is not that significant. And we all know for the entry level pricing (red e-deals) QF continually adjust these over time, introducing and withdrawing sale fares either generally or on specific routes responding to yields, supply and demand.

When you read this thread, and then go to a Virgin thread where people swear they won't/don't fly DJ because they don't get a free cup of tea and can't stand the jokes (or perhaps less flippantly don't have a strong enough loyalty program)... well its not surprising that QF have the market power to lift prices.