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Wednesday, January 28, 2009

Unit 3 Fares and Pricing

I will not blog about what we have in our book for Unit 1 and 2 because all of it is mostly need to be define. So, you only need to read through.

*FYI, you always need to remember to put yourself as the reservation people. So you won’t get confuse of how to understand all the terms in here.

FARE CALCULATION TERMS
(As you know, the word ‘fare’ = Price or Payment)
There are 3 principles to follow when calculating domestic airfares which is
1. Point-to-Point Fare
2. Through Fare
3. Joint Fare

Point-to-Point Fare
When there are stopovers (more than 4 hours), a fare is to be charged.
As you can see in the book, there is an example for Point-to-Point Fare right?
It stated there it is a circle-trip. Therefore, the itinerary contains three fare segments.

Try to understand,
1 segment, there are 2 different places.
When you see the itinerary (grey colour box), look at the dates and the times of each segment.
It is actually more than 4 hours because the dates are over a day. 16 OCT to 19 OCT is actually difference in 3 days!
.
Through Fare
When there are stopovers (not more than 4 hours), a fare will not be charged in the connecting city.
As you can see in the book too, it stated there it is a round-trip itinerary. There are 2 segments.

Try to understand,
From the table (itinerary), there are 4 segments because they added 2 connecting city in the itinerary which is Cincinnati(CVG) and Denver(DEN). When you see clearly at the itinerary, it shows the same flight at the same day which is 13May.

Have a look at the time now, just focus on the connecting city’s time which is CVG from 820A to 850A. Try to calculate it and the difference between these times are 30minutes. In this case, no fare is charged to or from that city because it is not more than 4 hours by stopping in the connecting city. Same goes to the connecting city DEN. Calculate it yourself!
.
Joint Fare
To identify Joint Fare, all you need to remember is “connecting between two different airlines”. Means, there will be a charge between two stopover points using two different carriers through specific connecting city.

Try to understand,
There is a Joint Fare between US and NW. Look at the table now.
MCI is a connecting city of DSM to MEM. When they reached to the connecting city which is MCI, a fare is to be charged because they change their flight from US to NW in the same date.

1 comment:

Ab Gilasinisana said...

u mcm cigu suda wo...
hahahahh
gud! i understand..