On Sky news tonight we have some woman telling us that 'holiday prices are to increase so that airlines can increase their profit'. What profit would that be then?
These so called 'journalists' are attempting to pander to the public's perception of being 'ripped off'.
Just my opinion you understand.
6th Nov 2001, 04:28
The best thing anyone can do is to ignore these idiots that call themselves 'journalists'.
How often do we hear: "The public has a right to know...". The public sure does have a right to know, but as far as I can see there is nobody out there informed enough (or willing enough to inform themselves) to give proper information! :mad:
6th Nov 2001, 12:33
British Rail? Not enough customers so increase the price?
6th Nov 2001, 13:13
Well you didn't really expect a journalist to have noticed the fact that airlines are going broke and thousands of airline staff are being made redundant did you?
6th Nov 2001, 13:48
Exeng, not sure why airlines would profit anyway, if holiday prices went up. Perhaps they meant holiday companies.
At the ABTA conference in Portugal yesterday, it was claimed that travel agents and tour operators had lost £150 million in the 4 weeks after 11/9, because people cancelled their holiday plans.
They are hoping to change the 2% rule - At present, holiday companies must absorb cost increases of up to 2 per cent of the package price - representing about £10 on the average package to a Mediterranean resort. They cannot apply a surcharge within one month of the departure date but Abta wants the right to apply the full amount up to 20 days before the holiday starts.
They are already having to absorb the security surcharge imposed by the airlines - £2.50/flight at BA.
Cannot see many people booking holidays with the prospect of "unlimited" surcharges to be applied!
6th Nov 2001, 14:01
You'd have thought that by now people would have noticed the following basic principle:
Full Fare Airlines
= increase their fares to cover increased costs; carry fewer pax; lose lots of money.
Low Fare Airlines
= reduce their fares to stimulate demand; carry more pax, and are making bucketloads of profits.
Simple, really! :rolleyes: :eek: :rolleyes:
oneworld increased prices of some Round the World tickets by as much as 75% on 1st October. Hardly a tactic likely to stimulate demand!!
6th Nov 2001, 16:53
Gaza, there is a lot of talk at the moment downplaying BA loads for some reason. The N Atlantic may be off now, but everywhere else is coming through strong. I fly a lot of Far East services- loads are generally incredible, but not premium fares. We are carrying more economy pax than we can handle resulting with upgrades into premium seats. The right thing to do I think is to raise fares to maintain turnover. I hear doom and gloom on the radio- believe me I don't see it every time I get into a 400 seater! Guvnerd, easy isn't it- this running airlines thingy- you must tel us all how you succeeded with so much 'success'!
NotSoFantastic - I agree that there is a down playing of load factors. I read this week that two rotations on a Middle East route (BAH I think) that were dropped post-11/9 have been reinstated as the remaining flights could not keep up with demand.
I'm still not sure BA's strategy of focusing on Premium traffic is correct. When things were going well it provided excellent returns, but, as we are seeing at the moment, in an economic downturn it is the segment that suffers first and most. I wonder how many of the pax in the back of your bus were flying in the front until a couple of months ago but corporate policy now says "save money, DVT class only"?
Should have added on my frst post that the fares that have risen the most are Business and First. For example a Business Class ticket ex-ARN rose by the the equivalent of £900. I should also add that it was the second increase this year, the first being in June.
Looking at forward bookings in December/January most long haul routes, especially those to Far East and Australia, have little or no avaiability in all classes.
[ 06 November 2001: Message edited by: Gaza ]