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Anyone Understand How Holiday Flight Pricing Works?

KC Cantiaci

pfm Member
Just curious really........

We're hopefully going to Florida for a holiday and I usually book the various elements (flight, hotel, car etc) myself as opposed to a package holiday via a travel agent. Anyway, I priced up direct flights with Expedia @ £490 rtn (which matched the airline price on their own website). I did the search again but this time, included a 4 night stay in a hotel (as the other 7 days will be on a cruise) and the cheapest combined price came in @ £436 inc the same flights??

I checked for a price on the flights again and it was back up to £490?? How's this happening?? How can return flights plus hotel stay be less than just the flights? I have an idea/theory as to what's going on but thought I'd ask any fishes who might be more knowledgable......
 
The holiday companies block book flights and hotels at greatly reduced prices. They then slice them up and sell them to consumers.

This is only the same as food manufacturers producing a readymeal lasagne for less than the ingredient cost to you and me. They buy the ingredients by the truckload and work to low margins.
 
I heard / read some years ago that if you looked for a holiday then checked it again the price would go up (and I assume if you cleared your cookies then this would slve it...) - however, after seraching for holidays a lot over the last 2 years (been away 6 times) and this dooesn't seem to be the case...

but yes, we did get some good deals over xmas as we were able to stay in some decent hotels for peanuts when you compard the overall price to that of getting them individually priced up... as we don't normally book packaged deals, but rather book the flight early, and the hotel closer to the time of flying...
 
Just curious really........

We're hopefully going to Florida for a holiday and I usually book the various elements (flight, hotel, car etc) myself as opposed to a package holiday via a travel agent. Anyway, I priced up direct flights with Expedia @ £490 rtn (which matched the airline price on their own website). I did the search again but this time, included a 4 night stay in a hotel (as the other 7 days will be on a cruise) and the cheapest combined price came in @ £436 inc the same flights??

I checked for a price on the flights again and it was back up to £490?? How's this happening?? How can return flights plus hotel stay be less than just the flights? I have an idea/theory as to what's going on but thought I'd ask any fishes who might be more knowledgable......

KC Cantiaci;2509929

There is no overall answer to your question because it depends on what airline you book with.

I use EasyJet for 4 return flights to Spain each year and here the approach is simple, book six months in advance when prices are at their cheapest. Mrs Mick has it off to a fine art and we pay peanuts for flights and this is helped by always avoiding school holidays and flying out between Tues - Thursdays, which is easy for us.

If your use one of the biggie company's who can sell via agencies as well as direct, then it gets a whole lot more complex.

Tickets can increase / decrease in price literally by the hour. If there is an upsurge in people booking close together, the computer pushes up the price and then reduces it when demand falls off. Booking at weekends is a case in point, the price often rises when you are booking during your week end break and the prices will drop Monday mornings when activity eases off. Generally speaking the prices will increase as more seats are sold.

The situation is also confused when airlines when sell a block of say 50 seats to a merchant (often known as a consolidator) who will buy in bulk at a discount and may or may not agree not to sell to the public for a few weeks, depending on the time in order to allow the airlines to push up prices. The consolidator usually holds back and starts selling at weekends and closer to the flight date but they can change their pricing very quickly.

People who fly long distance tend to book well ahead, so prices tend to be consistently high after a few weeks whereas in Europe, it is often more last minute, even just days before the flight, so prices bounce up and down more.

For Florida, you have a good choice of air lines and if you do it yourself, book as early as possibly, preferably sitting in front of your PC early afternoons between Tuesday and Thursday. Avoid booking during the evenings and at weekends because that is when prices tend to increase and will slowly lower on Mondays. Also flying out mid week usually gives a lower price but during the school holiday period, less so. That will not guarantee you the best prices but it will swing you up a few notches to buying at low prices.

If you fly during school holidays, the best advice has got to be, book around 6 month ahead because prices tend to inch up two points but only lower by one.

The airlines tend to buy 66% of their fuel on a forward contract and the lower price of oil should result in lower prices next year.

Hope this helps.

Regards

Mick
 
This latter used to be a favourite with climbers in the days before cheap flights. The game was simple - you booked a cheapo package out of season, grabbed a hirecar and sorted out accom in the mountain areas. The room was available if you fancied a day off to go paddling or if it made it easier getting to and from the airport at the right time.
 
yeah, we went to amsterdam the other year - and I arranged to get a cheap cruise from newcastle for 2 nights (39 quid each - a cheap deal with work) - we used that to go over, and also booked a ferry back (same cruise ferry) 5 days later and saved about 100 quid... :)
 
I also understood that cookies hiked the price every time you revisited a flight deal, so I always now go in and buy in one session.
January is always good for flight deals and I booked 5 flights yesterday evening. I've got to get another 5 for a summer holiday which I will do at the weekend, and another couple for Italy in November. We always buy a flight and work out the rest of it later on. The internet for hotels, house rental, car rental etc has largely made package holidays a thing of the past, and expensive in comparison. I also like the freedom to do whatever we want. I haven't bought a package holiday since 1996.

(£436 for flights to Florida, with hotel for 4 nights? Whoa..result! Well done)
 
I also understood that cookies hiked the price every time you revisited a flight deal, so I always now go in and buy in one session.

I have booked many flights, business and pleasure, in the last 5 years and I have never noticed this. Sometimes I am in and out of sites looking at the same flights multiple times over several days when comparing flights and available accommodation, especially if I am flexible on dates. In my experience the flights do eventually go up if I wait long enough, but this seems to be a simple factor of time and the flight filling up, and not some sneaky cookie algorithm.
 
I've never experienced it either and yesterday I was surfing the airlines to find the best prices for any 5 nights flights to Vienna in April. Back and forth I went and they didn't change.
got a good deal too.
 
Excellent summary from Mick.

Couple of extra points:
- Amadeus.net is a good way of doing a quick check, but they don't cover the Ryan Airs of this world
- Check the reliability/trustworthiness/solvency of the company you are about to buy your tickets from (easy to just google - some of these companies are sharks with the ethics of Bernie Madoff).
- All other things being equal, book with the airline (I'm willing to pay a small premium for peace of mind).
- I do clear the cookies before I start. Perhaps it's just superstition, but it's not nice when you see the price creep up while you're searching.

Apologies in advance if I have stated something you know already.

Re the price being the same with and without hotel room, check the hotel... Is it somewhere you would want to stay?
 
In my experience the flights do eventually go up if I wait long enough, but this seems to be a simple factor of time and the flight filling up, and not some sneaky cookie algorithm.

Good to know. Thanks
My suspicious mind, maybe
 
Excellent summary from Mick.

Couple of extra points:
- Amadeus.net is a good way of doing a quick check, but they don't cover the Ryan Airs of this world
- Check the reliability/trustworthiness/solvency of the company you are about to buy your tickets from (easy to just google - some of these companies are sharks with the ethics of Bernie Madoff).
- All other things being equal, book with the airline (I'm willing to pay a small premium for peace of mind).
- I do clear the cookies before I start. Perhaps it's just superstition, but it's not nice when you see the price creep up while you're searching.

Apologies in advance if I have stated something you know already.

Re the price being the same with and without hotel room, check the hotel... Is it somewhere you would want to stay?

Booking through Expedia with BA direct flights as I usually do. The hotel was one I just used as an example to demonstrate the saving of £54 per person for flights and 4 night stay as opposed to just the flights. We won't be staying there but even the one we will probably choose is still only £20-£30 dearer than the cheapest so still a saving.

I was wondering whether companies like Expedia can 'play' with the sale elements within a holiday booking to reduce the level of tax payable in any given country?? What I mean by that is if you book flights alone, there is a cost and fairly high tax on that cost if travelling from the UK. If you book a hotel abroad as well on one booking, could the holiday company change the makeup of the overall cost to the customer by making the hotel element effectively larger (that incurs lower rate of tax) and the flight element (that has high applicable taxes) smaller to reduce the overall taxes payable and thereby a lower overall price to the customer??
 
I too had never experienced this until I looked to book s break in New York a few years back. I found massive reductions when a package was bought.
I was told that this is particularly the case with USA packages.
 
Booking through Expedia with BA direct flights as I usually do. (...) even the one we will probably choose is still only £20-£30 dearer than the cheapest so still a saving.

I was wondering whether companies like Expedia can 'play' with the sale elements within a holiday booking to reduce the level of tax payable in any given country?? (...)

Sounds as if you have found a good deal!

I doubt whether they can play around with the taxes too much. I don't know how they can do that, but would guess this is probably more a reflection of the hyper-competitive nature of the US market, with hotel chains willing to go to marginal pricing levels to maintain occupancy rates.
 
It is interesting to fly via Paris or Amsterdam instead of direct from the UK if flying long haul to minimise Air Passenger Duty. Also some of the European airlines are lower priced than the UK airline.

If flying to the US direct from the UK it is worth booking a car as part of the package. The car hire is considerable cheaper than buying it standalone and also as you are buying a "holiday" you do not have to pay the full amount off until about 8 weeks before take off.
 
I use an human agent, for my flights... they always get better prices than me. I tried using apps like skyscanner, kayak snd the like but when making multiple hops, it gets too complicated for me.. Usually an agent finds round trip multiple stop offs flights ending up cheaper than a single flight to SFO. Being thin and 172cm cattle class Is no prob.

Oh and there is the whole skiplagged.com thing... Big guys trying to stop completely legal fare searches...

http://www.bloomberg.com/news/2014-...ravel-site-over-hidden-city-ticketing-1-.html
 
If flying to the US direct from the UK it is worth booking a car as part of the package. The car hire is considerable cheaper than buying it standalone and also as you are buying a "holiday" you do not have to pay the full amount off until about 8 weeks before take off.

Worth trying direct booking too, the uk agents charge a fortune for little extras like car hire.
For Barbados i just used to call Jordans and get a car for around 30% of the travel agent rate. It's easy to forget how easy it is to call and book something on the other side of the world. Booking . com etc do play some nasty games.
 


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