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I'd personally like to thank the U.S. Gov't & our Anti-trust Department

Discussion in 'Cozumel' started by deepsea21, Jun 16, 2016.

  1. eab

    eab Divemaster

    409
    17
    In addition to competition, I think the volume of passengers is a major contributor to the cost of flying direct into CZM. If you think about the revenue per employee in the two airports, it's significantly different. I suspect anyone staying in Playa, Tulum, and other mainland QRoo spots, as well as Cancun, Holbox, Isla Mujeres, would fly into CUN, not CZM.
     
  2. kaptken1392

    kaptken1392 Registered

    # of Dives: 500 - 999
    Location: Ft Myers, Fl
    16
    15
    I have said for years that fares have absolutely nothing to do with the actual weight of people and luggage or the distance they are flying. I'm not even convinced that the price of fuel really figures into it. I am in Florida. If I fly N & E, I can fly super cheap. The minute I try to book something W besides Las Vegas, the fares are crazy! I just checked RT to New Orleans in August on Delta - $1200!
    Crazy!
     
    deepsea21 likes this.
  3. ggunn

    ggunn ScubaBoard Supporter ScubaBoard Supporter

    # of Dives: 500 - 999
    Location: Austin, TX, USA
    11,070
    4,239
    In short, the fares have nothing to do what it costs the airline to fly the routes; it's all about maximizing profits and what the market will bear. That is, of course, until fuel costs go up and all the airlines hike their fares. So when the fuel costs go down they lower the fares, right? Dream on...
     
    deepsea21 likes this.
  4. mmmbelows

    mmmbelows Regular of the Pub

    1,031
    573
    But a few airlines are saying they are doing so well that they are going to be able to start returning some amenities on flights, there are some talk of plans of bringing back free peanuts on Delta and United
     
  5. BRT

    BRT not a soft touch ScubaBoard Supporter

    15,987
    13,750

    Do you really believe that flights cost more now in inflation adjusted dollars than they did before deregulation? Do you have any evidence for that? My repetitive flight experience is limited to Cancun and I know I get there much cheaper now but all in all it seems to me that flying is more affordable than it was 30 years ago.
     
  6. mediumone

    mediumone Contributor

    1,118
    456
    Did he say that?
     
  7. BRT

    BRT not a soft touch ScubaBoard Supporter

    15,987
    13,750
    Maybe not exactly, but the idea that fares go up when fuel prices go up and never go down when they go down will always raise fares and they will never lower. I have not seen that, but my view has been somewhat limited.
     
  8. ggunn

    ggunn ScubaBoard Supporter ScubaBoard Supporter

    # of Dives: 500 - 999
    Location: Austin, TX, USA
    11,070
    4,239
    Nope. Nothing like that.
     
  9. ggunn

    ggunn ScubaBoard Supporter ScubaBoard Supporter

    # of Dives: 500 - 999
    Location: Austin, TX, USA
    11,070
    4,239
    Base fares are only part of what it costs to fly. For example, It wasn't that long ago that you could fly to Cozumel with two 50 lb. bags with no baggage fees. Then it was one free bag, now its no free bags. The baggage fees were added when fuel went up and did not go away when it went back down.
     
  10. mmmbelows

    mmmbelows Regular of the Pub

    1,031
    573
    One of the biggest problems standing in the way of airlines pricing is they purchase hedged fuel contracts long into the future, they've got big contracts purchased when oil was at 100.00 a barrel with it at half that to buy it they have to write off millions of dollars of losses on the contracts they bought already.

    And here is the guy to blame for all the baggage fees:

    John Thomas, 54, of Needham, Massachusetts, is the airline consultant who introduced the charges to North America in 2008. He now uses a private jet or takes carry-on bags.
    And some experts believe the fees kept several airline carriers in business at a difficult time for the industry. Jay Sorensen, president of a travel consulting called IdeaWorksCompany told the Boston Globe that the fees created a 'tsunami of money.'

    'I would credit bag fees with saving the industry that year,' Sorensen added. Thomas, originally from Australia, works for LEK Consulting, a UK-based firm, and five years ago he was asked to come up with idea to make more money for the ailing industry. Airlines suffered losses after the 9/11 attacks, and things still looked bad in 2007 when oil prices rose to record levels.

    Online customers were also getting increasingly savvier. As a result, several airlines were near collapse. 'They were looking at certain economic death,' Thomas told the Boston Globe. Carriers in Europe had imposed baggage fees a few years earlier and Thomas advised North American airlines to start charging in 2008.
    Thomas had some convincing to do at first, as executives worried the charges might scare passengers off, and that only some companies would introduce the fees.

    But he shouldn't have worried. Once United Airlines introduced a $25 fee for the second checked bag in February 2008, the domino effect started in earnest. US Airways followed suit within a fortnight and now all major carriers except Southwest and JetBlue charge to check in your first bag. Yet as the Globe pointed out, they don't affect Thomas - due his success he either flies on a private jet or just uses carry-on. As passengers became resigned to the baggage fees, airlines also found ways of charging for other things that had previously been free.

    Perks such as speedy boarding, increased legroom and window seats may now all cost extra cash. The Globe reported that between 2008 and 2011, non-ticket revenue jumped from $10.3 billion to $22.6 billion. Thomas hasn't stopped imagining new ways for airlines to make money, however. Among other areas such as gambling, he's currently considering how free Wi-Fi services to passengers could provide an advertising revenue stream.
     
    deepsea21 likes this.

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