Why does it cost more to fly from RDU to London than from London to RDU (Charlotte: buying, salary)

[Beermat]

This is something which intrigues me that Triangle residents pay more to travel on the direct flight to London than people booking tickets in UK travelling to RDU. And in the short sample I did it varied from $150 to $500 per return journey depending on the date. Admittedly I didn't do a full statistical analysis but amazing that the results were always more expensive starting the journey at RDU, with not even one flight being the same or lower cost. No doubt other posters will find dozens of examples the other way so good news if I am proved wrong

I am sure there are countless reasons but it seems yet another example of Triangle residents being gouged Also, the American Transatlantic flights are substantially cheaper from New York, Los Angeles and Chicago than to / from London and RDU as there is zero competition for direct flights at the moment at RDU - and even when Delta start flying to Paris in June that is hardly competition as it would be easier to change in Boston or JFK than Paris where there are strikes at the drop of a hat

[Eagle Scout]

I think it is because of fuel costs. London's food is not very appetizing and we lose weight over there. For the return trip to RDU, less weight in the plane=less fuel needed. Lower fuel costs keeps the return fare lower?

Kidding, just kidding!

[J_Lurk]

You've answered your own question. The reason the prices are different can be summed up in one word: competition. There is no international competition for AA for non-stop flights out of RDU. There are many many options for flights to the US out of London, and most folks there aren't looking for RDU to be their first port of entry.

Also, I'm not even sure you are seeing the accurate prices out of the UK. Most airline pricing these days picks up the point-of-sale, so you are seeing a price for a US-based person asking for a quote from the UK to the US. If you were in fact to try to book a seat I'm not sure it would be bookable at that price since the system does know you are in the US and the yield management system may balk. Even if it is the actual price, the base price is set in pounds, not dollars, and will fluctuate day-to-day based on current exchange rates. The dollar's weakness could also be a factor. They do not modify the prices based on exchange rates, they modify them based on local prices.

I worked in airline pricing and yield management for nearly 10 years (not at AA). There are multiple origin-destination combinations where the same question could be asked. Airlines lose a lot of money, especially in this economy. Flights like RDU-LHR are sustained by business traffic, which probably isn't doing great right now. Prices are set not to "gouge", but to try to keep the flight profitable. If that flight goes away, our whole community loses.

[des1rees]

For me, we have family in the UK and we take the direct flight at least twice a year if not more. And to us, we'd rather pay more and take the direct flight then go through another airport...the convenience is worth it.

[Beermat]

Originally Posted by des1rees

For me, we have family in the UK and we take the direct flight at least twice a year if not more. And to us, we'd rather pay more and take the direct flight then go through another airport...the convenience is worth it.

I fully agree but my issue is why does it cost more when the journey originates at RDU than when it originates in London - it is exactly the same journey just back to front, and I requested fare details in US $'s so as to avoid any currency factors

The Raleigh politicians should ask AA to justify this discrepancy

[geoff2v]

Differing airport fees and federal taxes might have something do with it, but I really don't know. Did you look at, say, Delta to see if their flight from JFK-Heathrow is the same price as their flight from Heathrow-JFK? That's another interesting type of data point to look at.

[J_Lurk]

Originally Posted by Beermat

I fully agree but my issue is why does it cost more when the journey originates at RDU than when it originates in London - it is exactly the same journey just back to front, and I requested fare details in US $'s so as to avoid any currency factors

If the fare is 500 pounds and you request it in US Dollars today, you would get 500 pounds * 1.48 = $740. If tomorrow the exchange rate goes to 1.54, you could get 500 * 1.54 = $770. The fare would still be 500 GBP, but it would look like a $30 change. Requesting the fare in USD does not eliminate currency as a factor.

At the beginning of 2008, the exchange rate was closer to 2.00, so it would have looked like folks in England were paying a lot more than folks here (a 500 GBP fare would have been $1000). I'm sure it did look like they were paying a lot more than folks here.

For a myriad of reasons, airlines cannot afford to adjust fares every time currency rates change. Fares are set in the local currency of the origination point.

[adlnc07]

Airfare just makes no sense - I'm flying to the Dominican Republic via Philadelphia next month to go on vacation with my sister. She is flying from White Plains NY to Philly, while I'm flying from RDU. Her airfare is $200 more than mine, even though she is flying ~100 miles vs. my 300 miles. If I want to fly to Newark on business and stay 2 nights the airfare is $1000 (even purchased 30 days in advance), but stay 3 nights and it's $147. Sometimes it's cheaper to fly from Raleigh to Charlotte and then on to the final destination, rather than fly direct from Charlotte. Just one of the many reasons I find travel stressful!

[wheelsup]

Originally Posted by adlnc07

Airfare just makes no sense - I'm flying to the Dominican Republic via Philadelphia next month to go on vacation with my sister. She is flying from White Plains NY to Philly, while I'm flying from RDU. Her airfare is $200 more than mine, even though she is flying ~100 miles vs. my 300 miles. If I want to fly to Newark on business and stay 2 nights the airfare is $1000 (even purchased 30 days in advance), but stay 3 nights and it's $147. Sometimes it's cheaper to fly from Raleigh to Charlotte and then on to the final destination, rather than fly direct from Charlotte. Just one of the many reasons I find travel stressful!

It makes sense if you are familiar with supply and demand. If there are lots of seats open ticket prices are less no matter what distance you are talking about. If the flight is completely booked and you want a ticket you're going to pay! On a side note HPN (white plains) is prohibitively expensive no matter when you fly those flights are generally full, and the clientele is almost exclusively business. Lots of politicans and government officals buying tickets, I even saw Hillary and her mother on our plane once.

On a side note if you are going thru PHL or CLT sounds like you are on US Airways so I would like to say thanks for flying us!! Your ticket purchases pay my salary and I am thankful to have a job in this economy!

[adlnc07]

Yeah, we are flying US Airways. I just made the mistake of checking the fare if my sister flew from LGA instead of HPN and it would be $300 less (and less than $500 for the whole trip). White Plains is just so much more convenient for her though - luckily the trip is being paid for by someone else, but I still hate to "waste" money.