Holiday Airline Fares

[Northumbrian]

On checking Virgin Atlantic fares for flights over the Christmas period from Heathrow to Logan, Boston I was quoted 917.50GBP per adult. Out of curiousity, I checked reverse flights. The price from BOS to LHR was quoted as 812USD. Both quotes covered the same dates. Given that the exchange rate is now over 2USD to 1 UKP, can anyone explain this apparent anomoly?

[VillageVicar]

Easily. It's really down to market-share and revenue protection. Whilst there's a large draw for traffic from the UK to the states during this time of year, the draw is very limited ex USA. Additionally, although it's not stated, the airlines monitor one another quite closely and tend to pretty much match fares.

We also need to keep in mind the additional taxes we are now faced with as well.

Finally, the US has 11 different 'board points' for traffic to the UK. We have Five...sometimes six. Because the US has lost so much money for travel within the states, the prevailing carriers have now decided they will saturate the Atlantic in the hopes of building not revenue but cash-flow. It's rather frightening, but UK and many EU carriers are now prepared for the fight.

If you'd like to look at historical fares, the best group to use is Kayak.

http://www.kayak.co.uk

Be well

Fr Bill

[Northumbrian]

Many thanks Fr Bill. So exchange rates are irrelevant.

Good Wishes.
Northumbrian.

[VillageVicar]

Indeed, they are! Interestingly, all airfares around the world have a neutral currency the airlines can use in pricing them - called 'NUC's' (pronounced 'Newks) for Neutral Units of Calculation. This is used so that if you buy a ticket in say, Capetown or Sao Paulo, the airline still has a firm neutral fare value. Then the fare is 'adjusted' to the local currency. It becomes quite complex in some ways, but always protects the airlines. Interestingly, those 'NUCS' have historically been based upon the US dollar.

There are ways to beat those fares, either by using what is called a '5th freedom carrier' or fares that require you to change planes or even fly to a point beyond your intended destination. For example...two years ago, the first class fare from London to Denver was about a thousand pounds less than the fare from London to New York. So I'd buy a single to Denver, booking the flight LHR-JFK-DEN. And I simply wouldn't fly the portion to Denver. There are lots of fares like that out today, but you have to be diligent in how you book them and understand the restrictions you place upon yourself in doing so.

Good travels

Fr Bill