Qantas âpromotionâ. I received âpromotionâ from Qantas that they call âPremium Companion Saleâ when you buy 2 or more tickets and they give you âdiscountâ. So trip from Oz to LHR and back is 7995 pp in business. What the heck â this is what they call âdiscountâ and âpromotionâ? Quick dummy quote reveal ordinary prices from: BA $7232, AY $6083, LH 7129, QR $6340, MH $6000, OS $6000, TG $6290 and if you brave enough CZ $5568! However Emirates and Etihad even dearer then Qantas. Are Qantas serious? This is what they call âdiscountâ? Or may be it is time to realize that transit via Asia not only more convenient, but also cheaper then via Dubai?
I saw this companion offer and it didn't seem overly good value to me. Don't quote me but circa $3200 Syd to NY return in premium economy. That's expensive for metal cutlery! Don't get me wrong, I understand there's a cost difference, but an email flagged "companion sale" had me thinking maybe a 50% discount on the second fare when booking a premium seat.
Djcz , This current companion fare sale is absolutely considerably cheaper that the competitors .eg PE to Hong Kong on QF $1299 on CX $1982 at current pricing .Given QF has a far superior PE product over CX this is excellent value ,
Given management's focus and marketing on QFF, you'll be surprised at how inelastic the demand for QF coded flights are. As such, assuming cost is held constant, higher fares will indeed result in greater profits.
I think my point relates to any business really that sells a limited product (in aviation terms there are only so many seats on a plane). They should be selling the product for the highest possible price that the market is willing to pay to maximise revenue. It would be silly selling the product at your competitors prices if you can sell it for $2000 more... the balance here is that you have to sell a sufficient level of those seats. If you charge too much, then customers may simply purchase elsewhere. In QF's case, I am sure that many price sensitive people do, however as TRB pointed out, there can be other factors that may make people book with QF.
So yes, if QF is pricing their seats at a mark-up, and then selling them, then congratulations to the Roo.
As you have correctly noted, there are numeous options to get to Europe in J and at a cheaper price. If you don't like what the Roo is offering you would hardly be a loser flying QR!
This is the whole thing – balance. And currently judging Qantas shrinking I do not feel that balance is maintained. Also although I do prefer Qantas I will not pay more then 30% higher price – even if we do agree that Qantas is better, it definitely not better more then 30%, this is for sure. Since aviation deregulation Qantas not became cheaper (i.e. competition does not really works this was), but indeed it became smaller. And I do not believe that this is good for Qantas – wholly place cannot be empty.
Serg
Serg
QFF
Member since 12 Apr 2013
Total posts 999
Qantas âpromotionâ. I received âpromotionâ from Qantas that they call âPremium Companion Saleâ when you buy 2 or more tickets and they give you âdiscountâ. So trip from Oz to LHR and back is 7995 pp in business. What the heck â this is what they call âdiscountâ and âpromotionâ? Quick dummy quote reveal ordinary prices from: BA $7232, AY $6083, LH 7129, QR $6340, MH $6000, OS $6000, TG $6290 and if you brave enough CZ $5568! However Emirates and Etihad even dearer then Qantas. Are Qantas serious? This is what they call âdiscountâ? Or may be it is time to realize that transit via Asia not only more convenient, but also cheaper then via Dubai?
riley
riley
Virgin Australia - Velocity Rewards
Member since 19 Mar 2014
Total posts 358
I saw this companion offer and it didn't seem overly good value to me. Don't quote me but circa $3200 Syd to NY return in premium economy. That's expensive for metal cutlery! Don't get me wrong, I understand there's a cost difference, but an email flagged "companion sale" had me thinking maybe a 50% discount on the second fare when booking a premium seat.
djcz
djcz
Qantas - Qantas Frequent Flyer
Member since 28 Feb 2014
Total posts 130
IMO, the companion sale to Asia is at a low cost compared to other airlines.
Rkwm
Rkwm
Member since 23 Mar 2012
Total posts 41
Djcz , This current companion fare sale is absolutely considerably cheaper that the competitors .eg PE to Hong Kong on QF $1299 on CX $1982 at current pricing .Given QF has a far superior PE product over CX this is excellent value ,
TheRealBabushka
TheRealBabushka
Member since 21 Apr 2012
Total posts 2,058
What I don't get is why you guys keep falling for this?
Qantas marketing activity is targeted towards mugs and amateurs. I've switched off a long time ago.
hutch
hutch
Member since 07 Oct 2012
Total posts 772
I fully support Qantas charging as much as they can possibly charge.
I also fully support you looking around and buying the product which best suits your needs.
Serg
Serg
QFF
Member since 12 Apr 2013
Total posts 999
And you believe doing so they make more profit, buy more planes and start flying everywhere without Emirates? Good Luck in such believings.
riley
riley
Virgin Australia - Velocity Rewards
Member since 19 Mar 2014
Total posts 358
I took it more as a free market comment, rather than a shareholder or avid supporters comment.
watson374
watson374
Qantas - Qantas Frequent Flyer
Member since 17 Aug 2012
Total posts 1,285
Agreed, riley. That's exactly how I interpreted hutch's comment, and I agree with its sentiment wholeheartedly.
Mind you, I had to fly out for my grandmother's funeral just last week with only two days' notice. QF wanted $599, less than Scoot (never mind SQ).
It's not always bad.
TheRealBabushka
TheRealBabushka
Member since 21 Apr 2012
Total posts 2,058
Serg,
Given management's focus and marketing on QFF, you'll be surprised at how inelastic the demand for QF coded flights are. As such, assuming cost is held constant, higher fares will indeed result in greater profits.
Economics 101.
hutch
hutch
Member since 07 Oct 2012
Total posts 772
I think my point relates to any business really that sells a limited product (in aviation terms there are only so many seats on a plane). They should be selling the product for the highest possible price that the market is willing to pay to maximise revenue. It would be silly selling the product at your competitors prices if you can sell it for $2000 more... the balance here is that you have to sell a sufficient level of those seats. If you charge too much, then customers may simply purchase elsewhere. In QF's case, I am sure that many price sensitive people do, however as TRB pointed out, there can be other factors that may make people book with QF.
So yes, if QF is pricing their seats at a mark-up, and then selling them, then congratulations to the Roo.
As you have correctly noted, there are numeous options to get to Europe in J and at a cheaper price. If you don't like what the Roo is offering you would hardly be a loser flying QR!
Serg
Serg
QFF
Member since 12 Apr 2013
Total posts 999
This is the whole thing – balance. And currently judging Qantas shrinking I do not feel that balance is maintained. Also although I do prefer Qantas I will not pay more then 30% higher price – even if we do agree that Qantas is better, it definitely not better more then 30%, this is for sure. Since aviation deregulation Qantas not became cheaper (i.e. competition does not really works this was), but indeed it became smaller. And I do not believe that this is good for Qantas – wholly place cannot be empty.
Serg
Serg
QFF
Member since 12 Apr 2013
Total posts 999
Also 30% is from "discount promotional" price, if you take ordinary QF price and that is about 9.5K it became almost 60%!
russell
russell
Qantas - Qantas Frequent Flyer
Member since 04 Nov 2011
Total posts 236
Getting to the UK is one thing with numerous options in J, getting to North America is another thing altogether...
injadavidsan
injadavidsan
Member since 30 Mar 2015
Total posts 9
Hello russell, for US try Fiji Airways and enjoy a stopover in Nadi.