The mysteries of airfare pricing
I’m returning from Japan to New Zealand in a few months. I don’t think we’ll be back to Japan within 12 months, so I wanted to buy a one-way ticket. I knew it’s going to be more than half the price of a return ticket, but I expected it to be a little cheaper. So you can imagine my surprise when I found that a one-way direct ticket costs three times the price of a return ticket. I am not kidding. A return economy-class ticket costs about 100,000 yen and a one-way is 300,000.
I’m not complaining too much, because I think 100,000 yen (about 940 US dollars) is a reasonable price for a 12 hour flight on a good airline (and a very good price for return). But it’s still kind of puzzling. Obviously, with this pricing structure, no one will buy one-way tickets, as you can just buy the cheaper return ticket and cancel the return portion (with no refund of course). So why sell one-way tickets at all if they’re more expensive than return tickets? Are one-way travellers so costly or troublesome for the airline that they want to discourage them all together? What is going on here …?
To make it even more confusing, in the other direction, from New Zealand to Japan, you can buy a one-way ticket for about 25% less than a return ticket. However the price of one-way from New Zealand to Japan is higher than a return ticket originating in Japan. I’d be really interested to know the factors that are driving these price differences.
4 Comments
I have a theory… I like to call it the “security suspicions drives the price” theory. One way tickets usually get you pulled over and searched. :D
Honestly, that’s pretty alarming that the price is 300% more than the other. I guess they feel that demand is sufficient at that price with some people and others would buy a return ticket. Either way, they make a profit.
Well, I guess the policy is more or less towards the competitors.
By blocking customers switching to other airlines, the airline itself secures its market share. Therefore, chances are, if you do go back to JP, you have to fly with it; if you don’t, its competitors wont get an extra customer either.
BTW, can you transfer the NZ - JP part to me if don’t need it later this year? hehe just kidding :)
Jiani: But the return fare (100,000) is quite cheap, so I don’t think it’s a lack of competition causing the high one-way price. I would SELL you the return portion if I could, but of course the ticket is non-transferrable.
It’s a similar situation flying one way from Australia to Europe. Lufthansa charge 11 000 australian dollars (10000US) for a one way ticket, whereas a return ticket costs about 3,000 a ticket.
If you need a one way fare book through a travel agent.