Booking On The Internet For Cheap Airfares

[david96]

The benefits and pitfalls of booking on the net

On the net, what you pay for today's flight and what you pay for tomorrow's may be radically different.

February 15, 2008 - 11:46AM

The Age, Melbourne, Australia.

"Did you book on the internet?"

The question pops up almost every time holiday travel is mentioned.

People boast about how much they saved online in much the same way they claim to have won significant sums at Las Vegas casinos.

Perhaps I'm too sceptical but if everyone wins in Las Vegas, why is America's gambling headquarters crammed with vast glitzy structures built as if money is no object?

Why do casino signs offer cheap-as-chips breakfasts just to get me through the door?

Travel industry bosses no longer caution against booking on the internet. Doing so has become too widely accepted.

Instead, they agree, you'll probably save. But, they warn, the situation can turn nasty if something goes wrong.

The inevitable retort from people who always shop online for their holidays: "They would say that, wouldn't they?"

Nonetheless, if we take seriously warnings that all may not run smoothly, we should probably also heed experts' advice about travel insurance. If you shop online, they say, make sure you seek out insurance that covers such hiccups.

Two useful snippets of travel industry jargon are dynamic pricing and dynamic packaging.

Dynamic pricing is a concept many people use - even if they've never heard the term - when they shop online. Also called fluid pricing, it's an increasingly common reaction to supply and demand.

It just means what you pay for today's flight and what you pay for tomorrow's flight may be radically different.

Airlines pioneered the concept: tickets cost more when there's great demand and a likelihood of full aircraft. But they cost less when demand is sluggish, in a bid to boost yield.

People are tempted to buy "bargain" tickets. You win if you can travel at slack times. With increasingly sophisticated software, hotel chains have moved onto the same turf.

Businesses with plenty of travellers traditionally negotiated special rates at hotels they use frequently. These discounts were aimed at winning their custom. They were rewards for booking an agreed number of room nights.

Increasingly, however, hotels are refusing to do such deals. Instead, they refer businesses to online sites featuring dynamic pricing.

Businesses opposed to this policy say it makes it much more difficult to predict what rooms will cost - and that executives can't travel only when rooms are cheap.

(Dynamic pricing caught on quickly in the United States but ongoing resistance has slowed its growth in Europe. However, industry sources observe it is catching on quickly in Australia.)

Leisure travellers become enmeshed in hotels' dynamic pricing policies, too. Check a hotel chain's website and you'll see how prices for the same room can vary greatly.

Savings come by travelling at slack times. Rigid high, low and shoulder seasons are becoming less of a factor at destinations. A few unforeseen quiet days looming in the middle of the high season often produce surprising last-minute bargains.

Dynamic packaging is a related phenomenon. It's a travel industry term for using dynamic pricing to build a package holiday. Component parts of a holiday are sourced from different suppliers - airline travel and hotel rooms, for instance. These are bundled into one package.

How this beats a more traditionally packaged holiday is that prices of dynamically created holidays are often lower because advantage is taken of last-minute prices. Some online companies build all their packages in this way.

Pitfalls occur when something goes awry with one component, warns Justin Montgomery, managing director of Creative Holidays, a wholesaler dealing with travel agents who sell its packages rather than directly with the public.

"Websites selling packages tend to aggregate from different sources - airline, hotel, transfer company or whatever," he explains. "Once they've booked what they want from each - that's the end of it.

"It's fine when everything works smoothly - as it usually does. Passengers can certainly save money.

"However," he adds, "if something goes wrong, problems arise because these websites don't talk to each other.

"If a flight is cancelled or delayed, the airport transfer company isn't advised - nor is the hotel where the passengers are deemed no-shows.

"If the hotel has credit card numbers it can debit a card.

"There's scope for unwarranted expenses."

Montgomery doesn't see imminent change to "true dynamic packaging" - where airlines and hotels work out prices together in advance - rather than having packages put together by an aggregator.

"Technologically, there doesn't seem anything looming that will change things. It looks like staying separate in the short term - with aggregators trawling suppliers' websites to put together packages."

According to Montgomery, "if you book through an agent, if one aspect goes wrong everyone down the line will be advised. A good travel agent will want to retain your business so that a customer says: 'We had a good experience last time - we'll go back there'."

Rather than buy packages online, some passengers visit each component's website and purchase flights, hotels and any other requirements separately.

"They can save," Montgomery concedes. "It's okay for the savvy traveller who knows the risks and takes out appropriate insurance."

The technology may be new but age-old advice still holds true: buyer beware.

AAP

[Jandajoy]

The last line sums up the whole article. Caveat Emptor.

Personally, I've been booking flights on the net for years and it's the best thing that ever happened to the industry. Not only flight but hotels and everything else. I hate to think back to the old days of travel agents offices and phoning to make bookings. A time wasting nightmare.

pip pip

[actiondell4]

I now book my flights from Sydney to Bangkok via the web,i use www.travel.com.au or its sister website www.lastminute.com.au.

I have never had a problem and they have a customer phone number.

I also used www.zuji.com.au last year.

Most of these have E tickets.They send you a confirmation and you pick up your Eticket from the airport.

I recently got my trip for 924.00 aussie dollars,includes taxes online,however i went to flight centre they wanted $1198 for the same flight?

Didnt have the stomach to tell the petite travel girl that online the fare is $924.

[peter991]

I recently got my trip for 924.00 aussie dollars,includes taxes online,however i went to flight centre they wanted $1198 for the same flight?

Didnt have the stomach to tell the petite travel girl that online the fare is $924.

While I agree travel agencies are almost obsolete in the 21st century, now that people have access to the Internet, Flight Centre will match any airfare advertised on an Australian website.

The only problem with airfare search engines like the ones the OP mentioned is that for the most past, they do not have the budget carriers in their databases. I just checked Gold Coast to Bangkok on travel.com.au and zuji. Neither one lists Air Asia, which is around 2/3 of the price from my local airport.

I do agree with the original OP's point about travel insurance. It is essential and should be built into the price of a ticket.

Peter

[david96]

I recently got my trip for 924.00 aussie dollars,includes taxes online,however i went to flight centre they wanted $1198 for the same flight?

Didnt have the stomach to tell the petite travel girl that online the fare is $924.

While I agree travel agencies are almost obsolete in the 21st century, now that people have access to the Internet, Flight Centre will match any airfare advertised on an Australian website.

The only problem with airfare search engines like the ones the OP mentioned is that for the most past, they do not have the budget carriers in their databases. I just checked Gold Coast to Bangkok on travel.com.au and zuji. Neither one lists Air Asia, which is around 2/3 of the price from my local airport.

I do agree with the original OP's point about travel insurance. It is essential and should be built into the price of a ticket.

Peter

I would disagree travel agents can give very good service and you can pay by direct debit from a bank account and you can contact them in person if you so wish some of us do not have the same choice of airlines as city folk have as we live in regional areas.

[david96]

February 16, 2008 Age Melbourne

Don't rely on airlines to look after you when flights are cancelled.

Australians have had a glimpse here of the bastardry of the European low-cost airline industry and the techniques commonly employed to save money - because there is no law against them.

Early last month, Tiger Airways left dozens of passengers stranded in Mackay, Queensland, for up to five days when one of its small fleet of Airbus A320s "went U.S." (unserviceable).

On January 31, dozens of Jetstar passengers were thrown out of Sydney's T2 terminal at 1am and forced to huddle outdoors after an evening flight to Melbourne was cancelled. Jetstar blamed Sydney Airport and the airport blamed the airline. Passengers who spent $20 on a taxi fare to the international terminal to find a place to shelter indoors were threatened with eviction if they didn't have a passport.

People naively expect airlines to behave decently. When buying a ticket, few read the "conditions of carriage", a legal document designed to absolve the airline of responsibility for almost everything.

Generally, airlines will provide services to customers that they're not required to only when to avoid doing so would damage their "brand".

In the schemozzle at Sydney airport, a storm knocked dozens of aircraft off their schedules and many flights were cancelled. Virgin Blue decided to provide overnight accommodation for some of its stranded passengers.

Jetstar decided not to but the episode became a PR disaster when Jetstar's T2 terminal staff went home, stranding dozens of its customers. The cost-conscious Sydney Airport Corporation (which returns an astronomical $600 million profit a year on an operation that costs only $150 million to run) turned the lights out at 1am, two hours after T2 would normally have closed.

After the furore that surrounded that incident there was another at Sydney Airport on the evening of February 6 that went unreported.

Four Jetstar flights and several Virgin Blue and Qantas flights out of Sydney were knocked off their schedules, partly due to adverse weather.

After ascertaining that none of the flights would arrive before the 11pm local curfews and, after being denied permission to land after the curfews, Jetstar put up all the affected passengers in hotels.

Some Virgin Blue passengers had to spend the night in Sydney's T2 terminal, though this time the lights stayed on and the terminal remained open. Virgin tried to accommodate as many passengers as it could in hotels but couldn't find space for all because of a room shortage, so about 150 people had to spend the night in T2.

Virgin spokeswoman Amanda Bolger says 15 airline staff volunteered to do a double shift to look after the stranded passengers.

"Our conditions of carriage mean we don't assume responsibility in this situation," she says. "But our staff have the authority to make that decision [to find rooms for stranded passengers] in exceptional circumstances. There are rules but they're designed to be flexible and considerate."

Jetstar spokesman Simon Westaway denies there was a policy change after the first Sydney incident. "Every case is considered on its merits," he says.

[khunandy]

I recently got my trip for 924.00 aussie dollars,includes taxes online,however i went to flight centre they wanted $1198 for the same flight?

Didnt have the stomach to tell the petite travel girl that online the fare is $924.

You should have, Flight Centre will beat any genuine quote. The trouble with them is that when you read their small print the penalties are quite costly for any changes to the ticket.

[ProThaiExpat]

Thank you actiondell4 for the zeus web site. I used a CNX to LAX model to test the site, since most online travel sites, including China Airlines own site, don't mention the China Airlines flight out of Chiang Mai, stopping in Taipei and then on to LAX.

I used a local travel agent to make the original reservations and just discovered they had an overnight in Taipei booked on the return leg, since they stayed with China Airlines for the price, 32k Baht.

Zeus used the same China Airlines Flights going and coming however they made the last leg on Thai, Bangkok Air and another airline to avoid the very long overnight wait for the last leg into Chiang Mai. The cost was higher, about 1500 AUD so at least a choice is presented to the traveler to pay more and wait less. I certainly will use Zeus in the future as the are a lot better than my U.S. online flight search engine.

In booking online from Hawaii to Bkk a few years back, I found the Korean Airlines flights I wanted but they had no availablity on the dates I wanted. So I called Korean Airlines directly and there was no problem booking the flights at the same cost quoted.

I suspect that those who are willing to take the time to get the best deal and make the best arrangements, check both online, with an agent and directly with the airline, choosing the best all round travel arrangements among those offered.

Edited February 17, 2008 by ProThaiExpat

[ClaytonSeymour]

Thank you actiondell4 for the zeus web site. I used a CNX to LAX model to test the site, since most online travel sites, including China Airlines own site, don't mention the China Airlines flight out of Chiang Mai, stopping in Taipei and then on to LAX.

I used a local travel agent to make the original reservations and just discovered they had an overnight in Taipei booked on the return leg, since they stayed with China Airlines for the price, 32k Baht.

Zeus used the same China Airlines Flights going and coming however they made the last leg on Thai, Bangkok Air and another airline to avoid the very long overnight wait for the last leg into Chiang Mai. The cost was higher, about 1500 AUD so at least a choice is presented to the traveler to pay more and wait less. I certainly will use Zeus in the future as the are a lot better than my U.S. online flight search engine.

In booking online from Hawaii to Bkk a few years back, I found the Korean Airlines flights I wanted but they had no availablity on the dates I wanted. So I called Korean Airlines directly and there was no problem booking the flights at the same cost quoted.

I suspect that those who are willing to take the time to get the best deal and make the best arrangements, check both online, with an agent and directly with the airline, choosing the best all round travel arrangements among those offered. Agreed. Though I must admit that having done that, in excess of 95% of all my travel arrangements are made online.

[yoshiwara]

The OP is old hat.

[jingjoe]

The OP is old hat.

Yes, I dare say, "the horse has bolted".

[invalidusername]

A crappy travel agent (9/10) can be beat any day by online booking.

But a good and hard-working travel agent can do things that no computer has ever dreamed

espeically for those of us who want to make a single call and have it done right. (ie..no unexpected overnights)

[david96]

The main problem with internet booking is that one has to pay for the ticket immediately and one can not reverse the payment. A travel agent will hold the seat for at least 2 days (subject to airline requirements) before you have to pay.

Allows one more time for planning. Plus the fact one does not need to use a credit card with a travel agent.