The low airfare that vanishes in a click

Now you see it. Now you don’t.

When you’re airfare shopping, attractive prices can vanish in a split second. Just ask Jim Doll, a systems engineer in Atlanta, who recently tried to buy a ticket to San Francisco on AirTran Airways’ Web site. He found a one-way fare for just $130, but by the time he’d toggled over to Orbitz.com to see if he could do better there and then clicked back, the price had changed.

“Now it was $220 per person,” he said. “Why couldn’t they lock the fare for, say, five minutes, to give me a chance to make the reservation?”

Why, indeed? Because that’s not how reservations systems work. When you find a fare online, it isn’t actually there — it’s cached on the site. Caching, or storing a copy of the fare information, is cheaper and makes everything run faster. But there’s a price to be paid for the speed and convenience: A small number of fares — usually less than 5 percent — may no longer be available when you try to book them.

This is the “underbelly of the whole reservation system,” said Timothy J. O’Neil-Dunne, a managing partner for T2Impact, a technology consulting firm. “It is a dirty secret that the industry would rather no one know about.” But some customers think there’s more to blame than clumsy Internet technology. They believe that travel companies intentionally display a low fare but raise it as you move through the booking process, an electronic version of the time-tested bait-and-switch scheme. Although there’s no proof that any travel company is engaged in this illegal pricing activity, there’s plenty of evidence that travel companies try to lure customers with artificially low prices.

I can see the skeptical customers’ point. A few weeks ago, I booked a flight from Orlando to Las Vegas. I found a $114 one-way fare on the Southwest Airlines site, scrolled away to make sure Kayak.com couldn’t do better (it couldn’t) and then tried to buy the ticket.

“New Price,” the site announced in annoying red letters. The same ticket now cost $234.

I felt frustrated. If I had been notified that there was only one seat left at $114, I might have booked faster instead of taking my time. Hasn’t technology evolved to a point where you can show a passenger the seat inventory in real time, I wondered?

A spokeswoman for the Air Transport Association, which represents the major airlines, says the vanishing fares aren’t a bait-and-switch scheme but a “normal turnover” in ticket prices. “It reflects marketplace competition and has produced dramatic reductions in average fares since deregulation, as well as in the last few years,” said Victoria Day.

Whether this sleight of hand is intentional or not, there’s no need to become its next victim. The easiest way to avoid a fare surprise is to make a faster booking decision. Not a knee-jerk response, but less than, say, five minutes. The longer you wait, the greater the chance that the seat you wanted will be snatched up by someone else, and that the cheap fare will be replaced by a more expensive one.

Another tip: Read the initial fare quote carefully.

For example, a ticket from Denver to London might be advertised at $734, but the actual price is $1,121. “You think, ‘It’s theft. It’s a scam. I’ve been robbed,’ ” said Jim Fisher, a travel consultant who writes the blog diyEurope.

In fact, it’s nothing so sinister. The initial rate is the actual ticket price, but once you add taxes, fees and other surcharges, you end up with a ticket that costs $387 more than you thought it would.

“The airfare your airline charges is just a small part of what it costs to get you from Denver to London and back,” he said.

Here’s where well-meaning travel agents and I differ on airfare quotes. Many agents believe that it’s perfectly acceptable to offer you a base fare, minus all the extras, when you’re shopping around. The grand total is often disclosed in small type and then revealed in a more overt way just as you’re getting ready to pay. They have their reasons for making the prices seem artificially low — high fares are a turn-off for their customers and even a few extra dollars can make a traveler run to a competitor.

I think that’s dishonest. And Sen. Robert Menendez (D-N.J.) agrees.

Last year, he introduced the Clear Airfares Act, a Senate bill that would require airlines and online travel agencies to disclose any additional fees before you buy a ticket. Passing that law would ensure that every agency and airline would quote an all-inclusive, no-surprise price, right upfront.

Until that happens, I’m not too optimistic that an apparent bait-and-switch — or a technology glitch — is completely preventable. Buy fast and do a little math. But even if you’re quick on the draw and run arithmetic problems for fun, you could still get ensnared by a fare that wasn’t really there.

(Photo: hodgers/Flick Creative Commons)

  • Richard Trilling

    <>

    Well you might not have been robbed, but at the very best it’s dishonest and ILLEGAL in France. The full customer payment must be disclosed up front. Thank goodness for European consumer protection laws.

    Richard

  • http://nodebtworldtravel.com brian | No Debt World Travel

    Wasn’t there a story a few weeks back about cookies in web browsers that could tell when you visited and then would raise airfare prices on the next visit? Seems unlikely, but certainly not impossible.

  • Abhi

    You snooze, you lose? I agree the snooze is only for a minute or less but I guess the idea is not an issue with capitalistic competitive market customers. We see the same thing every so often in most of the retail shops that price of a thing you bought yesterday is now a lot lower or that of a thing you did not buy yesterday is a lot higher today. Spending time in market reserach has its own drawbacks it seems, may it be a few minutes or a few days.

  • David Z

    Many agents believe that it’s perfectly acceptable to offer you a base fare, minus all the extras, when you’re shopping around.

    I may be a travel agent, but I also disagree with that premise. Sure it potentially lets you “compete better” against us and others, but…it’s creating a lot of ill will towards people who rather want an all-inclusive price.

    Unfortunately you can’t really force those doing that practice to drop it. Can’t blame folks like Sen. Menendez from trying to do something about that and are in a stronger position to do so.

  • CmC

    I try not to be paranoid, but does anyone ever experience the fares going DOWN when they go back? I never have. If the explanations were true, wouldn’t fares sometimes go down, not just up?

  • George

    @Cmc: My thoughts exactly. But, as I do all of my bookings on the airline website, I can’t say that I remember encountering any “bait-and-switch” scheme either. YMMV.

  • Carver

    Let me see. You check on a price. You decline to purchase, or even attempt to place it on hold. You leave, go to a competitor, who can’t beat the price, come back, the price is gone, and you’re upset. That’s incredible.

    That’s liike being upset that the stock you wanted to buy 5 minutes ago has changed prices.

    Most goods and services do not fluctuate wildly in price. But there are some notable exceptions. Particularly when the price of the item is unrelated to the cost of producing the good or delivering the service. Some examples include art, stocks, and yes, sadly travel. That’s why two people can pay radically different prices for the same airplane seat, or Batman and Superman comics each sold for $1M although both have intrinsic value of less than a buck each.

    @CMC

    Yes, I have seen prices go down on many, many occasions. I’ve put fares on hold and come back and got on alert that the price went down.

    During the last few months of last year, I played that game quick successfully. I’d see flights from SFO to LAX hovering arouns $100 each way. Since its a route I often fly, I know which times the load is light. I’ve waited them out and seen the flight fall to $29.00 each way at the last minute.

  • Stephanus Surjaputra

    It’s too bad that the airlines won’t do what TicketMaster does. When you click on a seat, they give you a time frame on which they hold that seat for you (at the price that you chose).

  • Ames

    I have seen a price go down but not often. I have been doing some clothes shopping on the internet and had the same problem – the size or color I want is available when I put it in the cart but by the time I check out, ten minutes later, it is gone. Every once in a while though, it comes back because someone else decides not to buy. Make virtual shopping whether for airline tickets, or the clothes to wear at the destination, an adventure for people who either make quick decisions or have time to try again.

  • Josh

    I don’t necessarily have a problem with fluctuating fares and “buy it now or it may be gone in 5 minutes”, as I can understand how the systems work (it would be impractical, and maybe unfair to other shoppers, to hold seats/fares when most of the quotes are simply look-sees).

    However, wildly fluctuating fares and “book now and no changes” policies are exactly why I side with the customers on so-called “fat finger” fares; there’s absolutely no reason a surfer should assume that what they found is anything but a great promotional fare made available for a short time, book it instantly, and make other plans around it. And if it turns out the airline didn’t wish to offer that fare and made a mistake; they should just honor it and add checks to their systems to make sure “bad” fares aren’t posted.

  • Jim J

    @CmC

    Last year, I was helping a friend buy two tickets from Baltimore to Mexico City. After a long search, we decided on an itinerary on Continental Airlines. I went back to the Continental site to buy the tickets. The site showeed that the rate that I had seen on my previous visit was still there. I clicked on the “purchase tickets” button. The system took a long time getting me to the next screen. When the screen finally popped up. It was not the one I expected. It said that the tickets could not be purchased because the fare had changed. There was a link to take me to the new fare for the itinerary that was selected. My friend said to click on it to find out how much more he would need to pay. When that page popped up, we were both astonished. THE FARE HAD DROPPED BY $94 PER PERSON. The tickets were immediately purchased at the new, lower price. It does sometimes work out to the consumer’s advantage.

  • Johnny Triumph

    It’s not dishonest, caching is a must in the internet world. I used to work for a major US GDS and the HUGE amount of data we handled would make your head spin. If an internet site did realtime lookups on data for EVERY request there’s no way anyone would ever get data in an appropriate timeframe.

  • MVFlyer

    Another point regarding base fare quotations: the lowest base fare aren’t necessarily the lowest total fares when taxes/fees are added in. The total may vary depending on which airport/city/country you’re transiting through, airline fuel surcharges, and other miscellaneous add-ons.

    I really like the travel sites such as Orbitz which quotes you both the base and total fares to make an informed decision.

  • Mike

    @ Stephanus
    Sorry, but Ticketmaster to me is even worse than the airlines in terms of outrageous fees. They charge me a “convenience fee” even if I buy my tickets at the venue. How convenient is that? And if you actually want convenience and have them mail the tickets to you, they charge an additional amount per ticket, even though they all go in one envelope. This the primary reason I stopped going to concerts unless I got free tickets. the last concert I went to had $22 tickets and by the time all was said and done, $15 in service charges for each.

    As to the low price that changed so quick… So the airlines are crying because they are losing money. Well what would be better, selling that ticket at $125 in a matter of 30 seconds, or selling it for $150 2 hours later? Seems that they lower the rates so much that the lose out on revenue that could easily go towards eliminating stupid fees, or hiring pilots back on so that we all are safer in the air. (maybe hiring certified mechanics would be a start)

  • Carver

    @mike

    I would agree with you except for the last part. “What would be better, seeling the ticket at 125 in a matter of seconds or selling it for $150 2 hours later.”

    The airlines use very complicated revenue management systems to compute the best to way to realize revenue. These systems predict whether the seat is likely to be sold 2 hours later. If not, then the old adage about a bird in the hand applies…

  • Jesse

    I have found a cheap fare, and when I try to book it it goes up.

    I clean my cache and/or use another computer to do the same search and it gives me the first low price…

    My $0.02USD

  • TBall

    This happened to me at Delta.com the other day between the time I chose my flights, entered credit card, chose seats and went to confirm all in less than three minutes. No browsing to another site or any of that. The fare went up $50 in that time. I said forget it – I am driving this time!

  • Coach

    Delta.com is the worst, they totally have a bait and switch scam going. I clicked on a fare, it said $330 round trip, spent no time browsing any other site, went right to booking the flight, in 3 minutes I was clicking the purchase button, I then get a message that says, the fare you were quoted has been changed to $511.41. If they show 330 at the start, technology is good enough to know that once you accept that fare with a click of the mouse you are locked in at that number for at least 5 minutes. If I were to buy a car and agreed on the price at $10,000 dollars and as I handed over the payment to the dealer he said, “sorry the price you were quoted at is now changed and the price of the car is now $15,000″, that would be illegal. But that is what Delta Does. I called the complaint number and the rep said too bad that is how it works. I asked her, “do you think that is fair, would you like that to happen to you?” She had no answer other than the company line. “All fares are subject to change” with a smug attitude. Spread the word, watch out everyone, Delta will steal money from you right out from under your nose, or within 3 minutes of a mouse click.