QF anomaly in MNL pricing

[Melburnian1]

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.

 

[serfty]

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

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.

 

[Melburnian1]

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.

 

[ftm]

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.

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.

 

[markis10]

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.

Transit passengers dont have to pay the $30 fee Sydney charges, just the $10 domestic fee for MEL.

 

[Melburnian1]

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

 

[markis10]

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

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.

 

[serfty]

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.

Markets I guess - I have been looking at similar for the current HKG sales.

 

[Melburnian1]

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.

 

[under the radar]

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!!)

 

[serfty]

Fare Breakdowns MEL/SYD-MNL

Results From ITA for NALPH:

[TABLE="class: dijitReset fareDetails"]
[TR]
[TD] Fare 1: Carrier QF NLAPH MEL to MNL (rules)
Passenger type ADT, round trip fare, booking code N
Covers MEL-SYD (Economy), SYD-MNL (Economy)
[/TD]
[TD="class: farePrice"]AU$209.00[/TD]
[/TR]
[TR]
[TD] Fare 2: Carrier QF NLAPH MNL to MEL (rules)
Passenger type ADT, round trip fare, booking code N
Covers MNL-SYD (Economy), SYD-MEL (Economy)
[/TD]
[TD="class: farePrice"]AU$209.00[/TD]
[/TR]
[TR]
[TD] Australian Passenger Movement Charge (AU) [/TD]
[TD="class: farePrice"]AU$55.00[/TD]
[/TR]
[TR]
[TD] Australian Int'l Passenger Service Charge (WY) [/TD]
[TD="class: farePrice"]AU$27.18[/TD]
[/TR]
[TR]
[TD] QF YQ surcharge (YQ) [/TD]
[TD="class: farePrice"]AU$370.00[/TD]
[/TR]
[TR]
[TD] Australian Domestic Passenger Service Charge (QR) [/TD]
[TD="class: farePrice"]AU$7.74[/TD]
[/TR]
[TR]
[TD] Australian Domestic Passenger Service Charge (QR) [/TD]
[TD="class: farePrice"]AU$7.74[/TD]
[/TR]
[TR]
[TD] Australian Safety & Security Surcharge (WG) [/TD]
[TD="class: farePrice"]AU$5.53[/TD]
[/TR]
[TR]
[TD] QF YQ surcharge (YQ) [/TD]
[TD="class: farePrice"]AU$5.36[/TD]
[/TR]
[TR]
[TD] Australian Int'l Passenger Service Charge (WY) [/TD]
[TD="class: farePrice"]AU$27.18[/TD]
[/TR]
[TR]
[TD] [/TD]
[TD="class: fareSubTotalRule"][/TD]
[/TR]
[TR]
[TD] Subtotal per passenger [/TD]
[TD="class: farePrice"]AU$923.73[/TD]
[/TR]
[TR]
[TD] Number of passengers [/TD]
[TD="class: farePrice"]x1[/TD]
[/TR]
[TR]
[TD] [/TD]
[TD="class: fareTotalRule"][/TD]
[/TR]
[TR="class: fareTotal"]
[TD="class: totalLabel"] Total airfare & taxes [/TD]
[TD="class: farePrice"]AU$923.73[/TD]
[/TR]
[/TABLE]

• This ticket is non-refundable.
• Changes to this ticket will incur a penalty fee.

Fare construction (can be useful to travel agents)
MEL QF X/SYD QF MNL Q22.57 166.13NLAPH QF X/SYD QF MEL Q22.57 166.13NLAPH NUC 377.40 END ROE 1.107561 XT 55.00AU 15.48QR 5.53WG 54.36WY 375.36YQ

[TABLE="class: dijitReset fareDetails"]
[TR]
[TD] Fare 1: Carrier QF NLAPH SYD to MNL (rules)
Passenger type ADT, round trip fare, booking code N
Covers SYD-MNL (Economy)
[/TD]
[TD="class: farePrice"]AU$229.00[/TD]
[/TR]
[TR]
[TD] Fare 2: Carrier QF NLAPH MNL to SYD (rules)
Passenger type ADT, round trip fare, booking code N
Covers MNL-SYD (Economy)
[/TD]
[TD="class: farePrice"]AU$229.00[/TD]
[/TR]
[TR]
[TD] Australian Passenger Movement Charge (AU) [/TD]
[TD="class: farePrice"]AU$55.00[/TD]
[/TR]
[TR]
[TD] Australian Int'l Passenger Service Charge (WY) [/TD]
[TD="class: farePrice"]AU$27.18[/TD]
[/TR]
[TR]
[TD] QF YQ surcharge (YQ) [/TD]
[TD="class: farePrice"]AU$370.00[/TD]
[/TR]
[TR]
[TD] Australian Int'l Passenger Service Charge (WY) [/TD]
[TD="class: farePrice"]AU$27.18[/TD]
[/TR]
[TR]
[TD]
[/TD]
[TD="class: fareSubTotalRule"] [/TD]
[/TR]
[TR]
[TD] Subtotal per passenger [/TD]
[TD="class: farePrice"]AU$937.36[/TD]
[/TR]
[TR]
[TD] Number of passengers [/TD]
[TD="class: farePrice"]x1[/TD]
[/TR]
[TR]
[TD]
[/TD]
[TD="class: fareTotalRule"] [/TD]
[/TR]
[TR="class: fareTotal"]
[TD="class: totalLabel"] Total airfare & taxes [/TD]
[TD="class: farePrice"]AU$937.36[/TD]
[/TR]
[/TABLE]

• This ticket is non-refundable.
• Changes to this ticket will incur a penalty fee.

Fare construction (can be useful to travel agents)
SYD QF MNL Q22.57 184.18NLAPH QF SYD Q22.57 184.18NLAPH NUC 413.50 END ROE 1.107561 XT 55.00AU 54.36WY 370.00YQ

 

[bdruce]

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.

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.

 

[Fruitcake]

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.

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.