Travel

Report: Airlines charge more for individual fares. What can customers do?

Is it cost more to fly as a solo traveler than to travel with friends, spouse or family?

A report by travel website Frugal Travelers in recent weeks found that several major U.S. airlines typically charge higher fares than one group or more people compared to passengers traveling alone.

After hundreds of ticket searches, the survey found that these pricing strategies were common (though not extensive) on one-way domestic bookings with three largest American airlines: Delta Airlines, United Airlines, and especially American Airlines.

Bargain: When is the best time to book the cheapest flights?

American Airlines planes at Dallas/Fort Worth International Airport (DFW). Sean Cudahy/Sean guy

Although TPG has not independently verified the report, we found that one-way flights are priced higher for one-way flights than for one-way flights that include bookings for multiple passengers.

Here is an example: July flights from Charlotte Douglas International Airport (CLT) to Bill and Hillary Clinton National Airport (LIT) in Little Rock.

The uninterrupted flight booked by two people is USD 236 per person.

American Airlines

However, if you’re traveling alone, the price starts at $260 – it’s a nine-hour trip that includes a stopover.

American Airlines

To make nonstop flights you have to spend $382 for up to $382 – the solo traveler has a premium of 61%.

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American Airlines

What are the airlines talking about?

So far, the airlines remain mom about the subject.

The United States and Manchester United did not respond to multiple requests for comment.

Delta told TPG that this pricing strategy is no stranger to airlines or industries, but declined to comment further.

What exactly happened?

What’s going on?

I brought this question to top air ticket experts who provide some theory.

“Costco” theory

One person borrowed the logic of bulk pricing to ship freight directly from Costco’s shelves.

“For example, if I was going to say Buffalo wild wings, if I bought 18 wings, I paid less for each wing,” said Kerry Tan, professor of economics at the School of Business and Management at Loyola University. “So, this could be a story of a quantity discount.”

In short: buying two tickets is still more expensive than buying one, but each ticket is less expensive.

For possible business travelers

What we are more likely to have with the experts we talk to agree is that carriers appear to be blocking discounts from travelers who may fly over a dime for the company.

“This is the job of the airline: trying to [see] How much are you willing to pay for tickets,” said Ahmed Abdelghany, deputy director of Embry-Riddle Aeronautical University. “This is a price-sensitive person who pays from his own pocket, is a leisure traveler, or is a leisure traveler, or, no, is he a corporate traveler? ”

Newark Liberty International Airport (EWR). Spencer Platt/Getty Images

Doug Parker, former US Airlines CEO, retired in 2022, noted that booking a trip, including “Saturday Accommodation” was once a way to separate possible vacationers from road warriors, a rule that once was a tough endeavor, a tough truth.

“You can sit next to someone who pays $1,000, maybe next to someone who pays $200 to buy tickets,” Parker said in a speech on the airline’s confidential podcast this week. “What you’re seeing now is the airlines come up with new ways to solve this problem.”

A quick rebound

Of course, not everyone who flies by themselves is a business traveler.

Whether they are visiting family or meeting friends somewhere, passengers may fly alone, and there are many reasons why it seems unfair. In fact, the discovery of fare pricing in recent weeks has caused a rebound.

TPG founder Brian Kelly urged airlines in a video shared on social media to urge airlines to urge airlines to urge “stop this nonsense because you will force regulation.”

He joined the chorus of other voices, reacted in the same way and wondered about the lack of pricing transparency.

Aviation technology becomes more complex

However, there is little reason to think that a more detailed pricing strategy will end soon.

While the fare and algorithm-driven prices for open and closed algorithms have been around for decades, airlines have invested historic money to upgrade their technology, and today’s systems are more complex than ever.

Delta recently announced that it has expanded its fare type menu to include nearly ten options, each with its own combination of bags, seats and services that all depend on (or not included).

Sean Cudahy/Sean guy

The Atlanta-based airline also revealed in November that it began using artificial intelligence to price a small portion of its fares.

“With more advanced technology and with more passenger history, I think airlines are increasingly able to estimate passenger aspirations,” Tan said. “I’m sure you’ve heard of the idea of ​​dynamic pricing. This could be another aspect of the more successful pricing of airlines from a dynamic perspective.”

What can solo travelers do to save money?

So what should solo travelers do?

For beginners, check multiple airlines before booking.

shop

While the prices for solo travelers that are sure to be there are going to rise, you will encounter this when you want to book.

We always recommend using Google Flights (such as Google Flights) for comparison sites to check fares on a wide range of airlines before booking directly with your chosen airline.

Check the price of 1 and 2 passengers

That said, it might be wise to search on your preferred itinerary to make sure you don’t pay a higher price than a single traveler in a group. If you do run into this strategy, you may want to try another airline.

Book a round trip (or point of use!)

Frugal Traveler reports find that round trip bookings usually don’t see the same price fluctuations between single-passenger bookings. The same goes for reward bookings, so using your mileage is always an option (just consult our monthly valuation to ensure you get the most value from your hard-earned points).

Read more: Start your trip with points, miles and credit cards

flexible

One of the main rules for finding cheap flights is to be as flexible as possible.

While work, school and life schedules can make this easy to say, the more airlines, airports, travel dates and departure times you open, the greater your chances of getting the lowest fare.

Book variable fares

Many of the largest airlines in the U.S. have lowered changes on full-economy tickets, so if you can’t avoid higher fares as a solo traveler, you can try booking a trip, you can change it later (or cancel and rebook) if the price drops later.

You may not get a full refund, but you can usually attribute the difference in fare to your later trip.

Note that this strategy is not usually used with basic economic fares and can be trickier (although this is impossible) in budget airlines.

Book two trips and cancel?

Finally, how do you book a trip for two travelers and then cancel your companion’s reservation later?

Be careful.

Historically, airlines have not been kind enough to sly tactics around booking flight segments you don’t intend to fly, as recent controversies about the so-called “get out” show.

At least, I recommend not using this strategy often.

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