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| How Airline Fares Are Decided |
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Have you ever wondered about the inequities of airline fares? I
have, and constantly at that. Each time I get into a flight I make it a
point to ask my co passengers, at least those within hearing distance,
what airline fares they paid for the privilege of traveling together.
And each time to their surprise,
and my glee, they have all provided different amounts. In one memorable
case, the difference in airline fares that a man and his co-passenger
in the next seat paid was vast enough to straddle a couple of hundred
dollars. Which led to a very amusing fight that the cabin crew was hard
pressed to break up.
But anyways, coming back to the topic of airline fares, they really are atrocious. I mean, I have booked my tickets at various times. When time has been on my side, I have made my bookings well in advance.
And especially when it comes to business travel, I have often been forced to make my bookings at the last minute. Believe it or not, there are times when I have paid more expensive airline fares for my bookings at leisure than the airline fares I paid for my last minute rush. How do you explain that?
A friend in the airline industry then told me about how the system actually works. Usually an airline operator has a basic cost that they need to cover in order to make their trip profitable. This (which is very different from the Internet airline fares we pay) is a low figure that includes fuel charges, service charges and salaries and equipment cost etc.
The airline fare for Southwest we pay are this base component, plus the profit margin of the airlines, plus the taxes and surcharges imposed by the airport and finally, the commissions charged by various tourist operators or booking agents.
Now the affordability of your low airline fares to Europe depends almost entirely on the premium that your agent is going to charge you for. If it is someone whom you deal with on a fairly regular basis, he may decrease the commission you have to pay out. If it is someone you are dealing with for the first time, be prepared to pay through your nose.
Be that as it may, try to bargain with your travel agent. If the trip is international and entails hotel bookings as well, ask them if they will cover your visa charges. If the trip is domestic, ask them if they can provide you with vouchers of any sort. These travel agents are usually a well connected lot and depending on your destination, they just might have the right deal to sweeten your airline fares!
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