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Why are prices for the same holiday vastly different?

I am looking to book a holiday for two to the island of Zakinthos (if all go's well in the Greek elections)

While looking through the Thomas Cook pages here on the inter web I could not help but notice that the same hotel package, down to the exact dates of arrival and departure, advertised from two relatively local airports Cardiff (1 hr) and Birmingham (2 hr) varied in price by £324.

While I realise that different airports have different charges how can the holiday from CARDIFF Airport cost £162 more per person?

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  • 9 years ago
    Favourite answer

    To be 100% certain, you'll need to speak to them directly / work for them with an informed view of their operations. In theory, an informed / experienced member of staff should know enough generally on the airports to explain this to you face to face.

    But as a generalisation -

    1. Each site will be operated on its own merit, and being a traditional business, its main objective will be to maximise profits, so commonly involving the process of charging the highest possible price the market will tolerate, without affecting profits. Think of this, and then think again in the current world / European context. Have you noticed how prices have increased virtually across the board for products? The common business reasoning is that sales have fallen / are falling, so the traditional thinking is to increase prices to compensate for selling fewer items (that were previously at a lower profit margin). Depending on factors, this can cause sales to decline further, so the providers push the price up again, etc. When sales massively decline, to the company's severe detriment, it may then re-consider so the price may reduce again. Marketing then creeps in further, hence the "reduced from X price" sales pitches which aren't as impressive as they seem on the surface.

    2. You've presumably heard of economies fo scale? Well, not all airports have the same volumes of traffic and therefore those with more have more inertia to exert and so barter better deals, etc leading to reduced prices compared to rivals. Some favour air-post, others favour passenger travel, which can, depending on the circumstances, favour one more than another, and thus affect the final pricing the traveller pays.

    3. A market doesn't operate 1 company in isolation, and each operator has its own strengths compared to rivals etc. So 1 operator could offer a reciprocal deal to favour both departure site and destination site, so their prices are reduced perhaps in return for a differing process or procedure and other 'behind the scenes' at the destination, etc.

    4. At the airport different carriers (eg. BA, etc) operate and these companies are also involved in the overall situation. Again, depending on business arrangements struck between those involved can enable a reduced price for one airport, but not the other. Eg. some destinations favour the route to be served by a premium / National operator for the prestige etc. If managed carefully during negotiations, a reduced price can again be agreed, since the position of power is with 1 airport, but perhaps not its nearby rival airport.

    5. Depending on the airport sites themselves, and existing / planned travel routes, there can also be alternative routes taken, which on a large map may appear unremarkably similar, could potentially offer greater risks / costs etc, so the price to the traveller would be higher to reflect this.

  • ?
    Lv 4
    5 years ago

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  • 9 years ago

    Its simple, Higher Demand.

    When more people want to travel during the holiday season, the cost to travel goes up too.

  • Anonymous
    9 years ago

    The airport might charge fees for its services.Some airports are not.You can check it out at your agent.

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