Because the wholesalers can often be
allocated seats for resale, an airline often may not be
able to see the total seat availability on its own
aircraft and the public can be led to believe that all
reasonably-priced seats may be gone. This may not be the
case.
The conclusion is simple: You cannot
get the "best fare" by dealing directly with an airline,
even if you take the time to call them all. The only way
to get the best airfare is to call a reputable travel
agent who can see all products, can deal with all
suppliers (including charter companies and wholesalers)
and who is working for you.
Standard Published Fares, Classes
and Fare Types
We are all familiar with the major
three classes in air travel: First class; Business class;
and, Economy class.
Within these broad categories however,
there are many different fare types and correspondingly,
many different fares. For example, within each category
there may be regular or full-fares, discount excursion
fares, weekend fares and seat-sale fares. There may also
be "premium" fares or even special fares for seniors and
groups.
'Getting the best fare' requires an
understanding of the rules associated with these fares,
however, in general, the more 'airline restrictions' a
passenger can live with, the cheaper will be his flight.
Specific rules govern items such as the minimum and
maximum length of stay, whether the passenger has a
Saturday night in his itinerary, whether the ticket is
purchased seven or more days in advance and so on.
For example, full-fare tickets
have few restrictions. They have no advance booking
requirements, no minimum or maximum stay, no cancellation
penalties and no additional costs for making changes to
the ticket. The tickets are generally fully refundable
and endorsable (can be used on other airlines). Prices
are quoted on a one-way basis and are added together to
get the total fare. These fares can apply to all classes.
Obviously, these tickets are the most expensive and are
used where the traveller requires the flexibility of a
full-fare ticket. Small discounts from full-fare are
often available for seniors or children. As with
full-fare tickets, the fare is quoted on a one-way basis
and the tickets are fully refundable. These fares also
apply to all classes.
Excursion fares, which apply
only to round-trip economy class travel, are those chosen
by most travellers. They are the least expensive and are
used by those who are not inconvenienced by the many
restrictions imposed by the airlines. All excursion
tickets require some form of advance booking, generally
21, 14 or 7 days prior to departure. A minimum and
maximum stay is required, usually over a Saturday night,
and the number of seats in this category on each aircraft
is limited. The excursion fare is determined at the time
of booking by considering the departure and return dates
at the same time. Therefore, if the traveller makes
changes to these tickets after they have been purchased,
a whole new fare calculation is required and the
resulting fare can often be significantly higher than it
was at time of booking. As well, these tickets are often
totally non-refundable. Penalties, over and above any
fare increase, are applied for any changes to the
itinerary. It is the airline that imposes these fees, not
the travel agent.
To remain competitive, an
airline must react quickly to changes in the overall
fares charged by its competition. Therefore, excursion
fares can change at any time and travel agents and the
travelling public are not usually advised ahead of time.
In the case of fare reductions, such as seat sales and
special promotions, if an excursion ticket had been
purchased prior to the seat sale at a specific fare, the
airlines will not allow the traveller to trade in the
ticket for one at the new, lower fare.
Airline excursion fares can also
rise at any time. It is important to note that a fare
quote is only guaranteed upon full payment of the ticket.
In certain circumstances, a fare quote could have been
obtained on a certain day and be invalid a day later if
the ticket was not purchased prior to the fare
change.
Ticketing Deadlines
One way in which airlines can
partially make up for the loss of revenue due to the
relatively inexpensive excursion fares is to insist that
the traveller pay for the tickets at the time of booking
or relatively soon afterward. Many travellers are annoyed
to be told that they must pay quickly or lose the
booking, and it is the travel agent who is usually blamed
for creating these rules. In reality, these rules are
imposed by the airlines.
There are several types of
ticketing deadlines on excursion fares. Some require that
a ticket be purchased within 24 hours of booking. In this
case, if a traveller makes a booking on October 10 for
travel the following March, the ticket must be paid for
by October 11. If not, the reservation is automatically
cancelled, the previous airfare quote is invalid and a
new one must be obtained. The traveller may then have to
pay more for the same ticket.
Also, as mentioned previously,
excursion fares are generally subject to advance
purchase, such as a minimum of 14 days prior to
commencement of travel. Consequently, a traveller making
a booking just two weeks before travel may have to pay
for the ticket immediately.
While it is difficult to forecast the
exact airfare that a traveller will pay for a specific
type of excursion fare on a specific route on a specific
date, in general, the cheapest fares are obtained by
booking early rather than by waiting. Many travellers
continue to believe in the "last minute airfare bargain"
- the premise being that the longer they wait to book and
pay for their ticket, the greater the likelihood that
they will get the cheapest fare. Nothing could be farther
from the truth.
The Concept of Fare
Classes
In order to understand how airfares
work it is essential to examine the concept of "fare
class" or class of service.
If we were to interview individual
travellers sitting in the economy class section of an
aircraft on any specific flight and we were to ask each
of them how much they paid for their ticket, we would
find a wide variance. For example, on a flight between
Ottawa and Vancouver some may have paid $349 and some as
much as $2942 for what is essentially the same thing - a
seat in the economy section of the aircraft.
If you take a look at their air
tickets you would find that the fare they paid is
dependent on the "fare class" they are booked in as shown
on their tickets. The broad category of fare class is
indicated on the ticket by a single letter printed beside
the flight number in a column headed 'CL'. In economy
class the letter will generally be one of
Y,B,H,K,M,N,Q,L,T or V. In Business class you may see
fare classes such as J,C or D, and in first class you
might see P,F or A. Within these broad fare classes there
can often be many sub-categories; for example in 'M' you
may see the actual fare basis shown on the ticket as
'MHABO'. Every individual fare basis has its own rules
and its own fare. There are literally hundreds of
these.
In general, economy fares become
cheaper as you move from fare class 'Y' (full-fare
economy) toward fare classes such as 'L', 'T' or 'V'. At
the same time, rules become more restrictive as you move
down the list from 'Y'. Therefore, the concept is, if you
need more flexibility, less restrictions and less rules,
you move up in fare class and pay more. The person paying
the high cost 'Y' class fare sits in the same section of
the aircraft as everyone else, gets the same service as
everyone else, eats the same food as everyone else, but
was allowed to book his flight the same day he travelled,
is allowed to change his reservation at any time without
charge, is able to use his ticket on a competitive
airline if he wishes and is allowed to cancel part or all
of his trip and obtain a refund. His travelling
companions with tickets in cheaper fare classes will not
be so fortunate.
So fare classes have little to
do with where you sit on board or the service you
receive. They have everything to do with flexibility. The
fare you pay is determined in large part by how much
flexibility you need.
The Fare Table
Let's look at a simple example of
airfares available for a hypothetical trip from Ottawa to
Vancouver. Here is the type of information a travel agent
would see on the computer screen while discussing the
options for this trip with a client. Fares are shown in
order from lowest to highest. 'R' indicates round-trip.
AP is 'Advance Purchase' requirement. L and H indicates
high and low season fares, i.e. where the date of travel
is near a high/low season change date, both are shown. A
good agent will suggest dates which allow travellers to
get the low season rate by flying a day or two earlier or
later. 'Sa' is a Saturday night stay.
|
Airline
|
Fare
|
Fare
Class
|
AP
(days)
|
Min
Stay
|
Max
Stay
|
Rules
|
|
AC
|
$349 R
|
L
|
3
|
2
|
3
|
Depart Saturday, return
Monday or Tuesday. Non-refundable, change fee
$100
|
|
AC
|
$349 R
|
LX
|
7
|
Sa
|
30
|
Weekday only, seat-sale fare.
Non-ref, chg $100
|
|
AC
|
$379 R
|
LW
|
7
|
Sa
|
30
|
Weekend, seat sale fare.
Non-ref, chg $100
|
|
AC
|
$379 R
|
LL
|
7
|
Sa
|
90
|
Night fare (dep after 6pm)
Non-ref, chg $100
|
|
AC
|
$419 R
|
QX
|
7
|
Sa
|
30
|
Weekday seat sale fare.
Non-ref, chg $100
|
|
AC
|
$439 R
|
QL
|
7
|
Sa
|
90
|
Night fare. Non-ref, chg
$100
|
|
AC
|
$449 R
|
QW
|
7
|
Sa
|
30
|
Weekend, seat sale fare.
Non-ref, chg $100
|
|
AC
|
$449 R
|
L
|
7
|
Sa
|
90
|
Night fare, special dates
only. Non-ref, chg $100
|
|
AC
|
$503 R
|
QL
|
14
|
Sa
|
30
|
Child fare. Non-ref, chg
$100
|
|
AC
|
$519 R
|
LH
|
7
|
Sa
|
90
|
Night fare. Non-ref, chg
$100
|
|
AC
|
$548 R
|
QH
|
14
|
Sa
|
30
|
Child fare. Non-ref, chg
$100
|
|
AC
|
$559 R
|
QL
|
14
|
Sa
|
60
|
Non-ref, chg $100
|
|
AC
|
$579 R
|
QH
|
7
|
Sa
|
90
|
Non-ref, chg $100
|
|
AC
|
$609 R
|
QH
|
14
|
Sa
|
60
|
Non-ref, chg $100
|
|
AC
|
$646 R
|
VL
|
14
|
Sa
|
60
|
Non-ref, chg $100
|
|
AC
|
$716 R
|
VH
|
14
|
Sa
|
60
|
Non-ref, chg $100
|
|
AC
|
$740 R
|
HL
|
7
|
Sa
|
90
|
Non-ref, chg $100
|
|
AC
|
$808 R
|
HH
|
7
|
Sa
|
90
|
Non-ref, chg $100
|
|
AC
|
$1025 R
|
BL
|
7
|
Sa
|
|
Non-ref, chg $100
|
|
AC
|
$1131 R
|
BH
|
7
|
Sa
|
|
Non-ref, chg $100
|
|
AC
|
$1177 R
|
Q
|
7
|
Sa
|
|
Companion fare. Non-ref, chg
$100
|
|
AC
|
$ 750
|
B
|
|
|
|
USA child fare
|
|
AC
|
$ 1,059
|
B
|
|
|
|
USA fare
|
|
AC
|
$2185 R
|
B
|
3
|
Sa
|
|
CXL OK $100, chg OK
$100
|
|
AC
|
$ 1,324
|
YCH
|
|
|
|
Child reduced fare
|
|
AC
|
$ 1,471
|
Y
|
|
|
|
|
|
AC
|
$ 1,721
|
J
|
|
|
|
|
Airlines can change their fares at any
time (and frequently do!) therefore the fares quoted by
your agent on a specific day ( for example, those shown
in the table) may be different than they were the day
before. Bookings made on any specific day must use the
fare tables showing on that day. The fares are
established by the airlines and the agent has no
choice.
We have kept this example simple by
showing only one airline, however in reality, the agent
would also see the similar fares for every other airline
flying this route. Also, the fare classes would be more
complex than just QH or QL. There may be scores of
different actual fare classes and fares.
Determining the Fare
In the example shown above, if a
client were booking an Ottawa-Vancouver trip based on
this fare table he could pay anywhere from $349 to $3442
for his return ticket.
How does your agent determine the
lowest fare a client can pay?
It depends on the client's
flexibility. For example, the following questions must be
asked.
Do you need a ticket which is
refundable?
The answers to these questions will
enable the agent to quote the best fare for the client.
As you can see, there is no easy answer to the question
"How much is a ticket from Ottawa to Vancouver?"
Availability
At this point in our example, the
agent has chosen the best fare for the client. The next
step is to determine if that fare is available on the
dates he wishes to travel. The fare is only available if
there are seats on the specific aircraft on the specific
day in the fare classes chosen. There are a limited
number of seats in each fare class on each aircraft. The
exact number is determined by the airlines. Usually once
they're gone, they're gone.
The agent will look at the seat
availability on all flights departing on the date the
client has requested at or near the times the client has
requested. Here is a simplified example of what the agent
might see on the computer screen.
AC903 J5 Y7 B2 H1 V1 Q0 L0 YOWYVR 0930
1140
AC907 J6 Y4 B3 H3 V4 Q1 L0 YOWYVR 1755 2019
These are the direct flights showing
for the date the client wishes to fly. The screen will
also show all connecting flights but, for simplicity, we
have not shown them here.
The table shows the flight number, the
number of seats available in each of the fare classes,
the departure and arrival points and the departure and
arrival times. For example there are 5 business class
seats (J) available for sale on flight 903 and 11 economy
seats. (7 in full fare economy (Y) and 2 in B, 2 in H and
1 in V.) These fare classes correspond to the prices
shown in the fare table above.
If the client stated that he wanted
only direct flights, the best fare available on this day
would be in fare class Q on flight 907. If he were to
choose flight 903, the best fare would be in V fare
class. Consequently it would cost the client more if he
were to fly on the early morning direct flight than it
would on the evening flight even though the actual seat
in the economy cabin of the aircraft might be identical
in either case.
The longer a client waits to book the
flight, the less seats will likely be available in the
lower fare classes and the higher will be his fare. For
example, if the client had called the agent the day
before and asked about the fares, the computer may have
shown the following.
AC903 J6 Y7 B3 H2 V2 Q2 L0 YOWYVR 0930
1140
AC907 J7 Y7 B4 H4 V4 Q3 L1 YOWYVR 1755 2019
The client could then have booked
flight 907 in L class and paid the absolute lowest fare
possible, but waiting an extra day resulted in all L
class seats being sold out. The decision to wait one day
to call the agent could have cost the client $297 (V less
L fare).
The same procedure is followed by the
agent for the return flight back to Ottawa. If the seats
in both directions are in the same fare class, the fare
in the Fare Table will apply (plus taxes). If the seats
are in different fare classes, the fares shown in the
fare table are divided by 2 for each class and then added
together to get the total fare.
You can appreciate that the fares paid
by a client for several trips between Ottawa and
Vancouver on different dates at different times of the
year could vary widely and yet each fare could have been
the cheapest fare available at the time of booking - even
if the airlines didn't change the fares at any time
during the year.
When the airlines advertise fares,
they show only the cheapest fare in the ads, i.e. the
lowest fare class. If a seat sale is announced and if the
client does not act quickly, the limited number of seats
on each aircraft in this fare class may be sold out when
he tries to make the booking. This is frustrating for the
client and he may tend to take this out on his travel
agent, when in reality, higher fares result from his
procrastination.
Changing your flights after
ticketing
The vast majority of airline tickets
sold are "restricted" in one or more ways. For example,
most are totally non-refundable. Many carry change fees.
Many do not allow changing of the routing and many are
non-endorsable (only good on the airline indicated on the
ticket). Generally, the only totally unrestricted tickets
are Full-Fare Economy and Business Class
tickets.
When a client purchases a restricted
discount ticket, he has made a contract with the airline
according to the conditions and rules associated with the
fare paid. That is, the airline agrees to sell him his
seats at the reduced price in exchange for him agreeing
to use the ticket according to the rules. If he changes
his ticket, the airline can and usually will assess
penalties. (It is indeed the airline which assesses these
penalties, not the travel agent.)
Here are a few examples of what
happens when a client flying on a restricted ticket
changes a reservation.
Cancelling all flights on a
ticket
If, after having purchased a
restricted, non-refundable ticket, a client cancels the
whole trip, the value of the ticket can usually be used
towards future travel for a limited time, generally one
year. The change fee would be assessed and sent to the
airline. The value of the new ticket would be calculated
and the difference would have to be paid by the client.
For example, the client cancels an itinerary for which he
had a $450 ticket. The client rebooks a trip which prices
out at $600. The client would have to pay the change fee
(usually about $100) plus the $150 difference.
Changing the date or time of a
flight
When a client changes the date or time
of a flight, but not the departure and destination cities
or the airline, the change fee applies plus the client
will have to pay the difference in the fare. For example,
if the client has a "V" class ticket and changes to a
flight the next day on which there are "V" class seats
available, the only fee assessed would be the change fee
(about $100). If however, there were no "V" class seats
available on the new flight, and the client had to take a
"Q" class seat, the client would pay the change fee plus
the difference between the V and Q class fares.
Changing the routing (includes not
using one part of a ticket)
This is generally a no-no and could
cost the client a significant amount of money. Changing
the routing means deviating from the routing shown on the
ticket, and could include stopping in a city where no
stopover was allowed (see the small 'X" and "O"
indicators on the left side of your airline ticket), not
taking one or more of the flights on the ticket, and so
on.
For example, assume a client has
purchased a restricted discount
Vancouver-Ottawa-Vancouver ticket for $349 which includes
a direct flight between Vancouver and Ottawa and a return
flight from Ottawa to Toronto, a change of planes in
Toronto, and a flight from Toronto to Vancouver to
complete the journey. The ticket will indicate that a
stop is not allowed in Toronto. Assume, as well, that
after having purchased the ticket, a friend who is
driving from Ottawa to Toronto offers him a ride between
the two cities. When the client shows up for the
Toronto-Vancouver flight, he may be surprised (and angry)
to find out that his Toronto-Vancouver reservation has
been cancelled and that his ticket is now unusable. This
is because he has changed his routing and a change of
routing is not allowed in the "contract" he has with the
airline. The airline saw that his outgoing flight between
Ottawa and Toronto was not used and it automatically
cancelled his Toronto-Vancouver flight. In order to get
to Vancouver, the client may now be forced to pay the
"one-way" fare between the two cities, which could be
close to $1471. Total cost of the trip $355 plus $1471 =
$1826 plus taxes. This was an expensive "free" car ride
from Ottawa to Toronto!
It is important to keep in mind that
if a client is flying on a restricted ticket and a
segment of a trip is not used, all subsequent segments
can be cancelled by the airline and a completely new
booking and ticket will be required to complete the
trip.
A similar problem might result if the
same client decided to stay in Ottawa rather than fly
back to Vancouver. It is against all airline rules to
allow a passenger to purchase a round-trip air ticket if
he has no intention of taking the return flight. A
one-way ticket between Vancouver and Ottawa would cost
$1471 (see fare table) and a round trip ticket could be
as cheap as $349. Consequently, if the client paid $349,
then stayed in Ottawa and did not use the return ticket,
the airline has the option of assessing a penalty of the
difference, $1122. Although this is rarely done, it could
happen, and the travel agent may be liable for this
amount if she is found to have issued a round-trip ticket
when she knew the client was flying only one-way.
Getting Discounted Tickets for US
and International Travel
If you plan to travel to the U.S. or
internationally and if you don't need the flexibility
that comes with a full-fare ticket, you could possibly
obtain a discounted ticket through your travel agent who
can get it from wholesale providers of airline tickets
called 'consolidators'. The general public does not have
direct access to these companies.
Consolidators are located in major
cities throughout the world, including here in Ottawa,
and sell reduced fare airline tickets to retail travel
agents. These companies have special arrangements with
airlines giving them fares that are generally 18% to 40%
lower than fares available from the airlines themselves.
These lower fares are based on buying volume and the
marketing relationship between the consolidator and the
airline. They allow the airlines to compete with charter
airline companies in the local marketplace.
A consolidator issues an airline
ticket to a travel agent at a face value that is the IATA
approved world-wide price for that type of ticket
considering the booking class, advance purchase
requirements and other conditions. By purchasing a ticket
which bears the approved world-wide price, the traveller
is able to avoid any problems when checking in at distant
locations.
However, while the ticket itself shows
that its value is the agreed-to world-wide price approved
by IATA, the final price actually paid for the ticket
bears no relationship with this value and is determined
by local market conditions in the location where the
ticket was purchased.
An Example of a Consolidated
Ticket
Shown on the next page is an actual
one-way ticket from Toronto to Bangkok.
The price shown on the ticket is $1280
plus applicable taxes. This is the approved IATA fare for
this routing and class. Had the travel agent obtained
this ticket directly from an airline, the traveller would
have paid $1280 plus tax for the ticket, a total of
$1356.18.
In order to get the customer the best
possible deal, the agent (actually TrailFinders in
this example) shopped around and was able to obtain the
actual ticket shown above from a local consolidator for
$223 less. This entire savings was then passed on to the
customer, saving him more than 16% over what he would
have had to pay if the ticket were obtained directly from
the airline itself. His total cost was $1057 plus tax, or
$1133.18.
The ticket, in this case 'V and M'
class, carries the same class restrictions as a ticket
purchased directly from the airline, regardless of the
actual price paid for the ticket.
Obviously, these types of tickets are
not always available for the dates and routings that the
client may want, however when they are available the
savings can be considerable. The effort required by the
agent to search out and obtain these tickets is also
considerable. It goes without saying that many agents may
prefer not to use consolidator tickets and instead, to
sell a ticket obtained directly from the airlines. If
your agent is doing this, it's time to find a new
agent.
An 'Even Better' Idea
We believe there is an 'even better' way to get
the best international airfare. We have negotiated special fare
arrangements directly with our airline partners and consequently we
sell 'consolidated' air tickets without the consolidator! No middle
man. The savings go directly to you.
The Last Word
While this document is limited in
scope, it serves to point out that the pricing of
airfares and the steps involved in obtaining the best
airfares on any specific route are very complex subjects.
Dealing with an airline directly, either in person, on the telephone
or on the web, will often result in the
client paying a higher fare than is necessary. The best
fares can always be obtained through the use of a
reputable, experienced, skilled travel agent who makes it his/her business to seek out the best bargains for the
customer.
Have a great trip, but pay attention
to the details shown on your airline ticket!
