When you’re sitting on a long-distance Air Canada flight, Americans sitting next to you have often paid almost half the price for the exact same flight (even if they have additional flights between Canada and the USA on the same ticket). And that’s normal!!! It’s literally the basics of how plane tickets work (and it’s like that on all airlines worldwide)!
Since we founded Flytrippers over 8 years ago, our #1 area of expertise is definitely plane ticket prices, so we must have repeated the basics of how plane ticket prices work hundreds of times. And yet, so many people still don’t understand this very well. It’s obviously normal when you don’t know!
So this concrete example is to show you once again how flight prices are determined. I actually talked about this topic in my interview on Canada’s most-watched French-language TV news channel this week.
It’s really important to understand how flight prices work if you want to become an expert at finding cheap flights like us (you can also just follow the 31 tips to save on flights).
Here’s an example of Americans paying almost half the price for the same flights (and why it’s this way, including how you can use this knowledge to save money too).
Basics of cheaper flights for Americans
We see it every time there’s news involving plane ticket prices (such as full-size carry-on bags no longer being included in the lowest fare class), there are still so many travelers who don’t understand the most basic thing: the price of flights has nothing to do with the length of the flight, the number of flights on the ticket, or even the cost of operating the flight for the airline.
The price of flights is always the maximum price that the airline can charge. It’s that simple!
And the maximum price varies greatly depending on the 6 variables that affect flight prices (including the booking date, which many people overlook).
This means that on a given flight, among the 300 passengers, most have paid very different prices! Prices vary enormously (more than any other travel expense), which is why learning how to find cheaper flights is by far the most useful skill to develop!
This also means that very often, Americans are sitting on the same Air Canada transatlantic or transpacific flights as you… but they paid much less, even though their tickets also include additional flights (connections between Canada and the United States).
Example of cheaper flights for Americans
This week, direct flights from Toronto to Tokyo on Air Canada were $1528 roundtrip from September 11 to 25, for example.
Air Canada obviously sells this exact same flight to travelers across North America, with connections (travelers who want to save money have understood the most basic thing: long-distance flights that are direct are the best way to pay way too much).
At the exact same time as the Toronto search for $1528 roundtrip, the exact same flights between Toronto and Tokyo on the same dates on Air Canada were $848 roundtrip when you add flights between Columbus and Toronto before and after.
It’s almost half the price for Americans, even though they have extra flights between Toronto and Columbus (the capital of Ohio).
Operating 4 flights instead of 2 obviously costs more, but the price you pay as a passenger has absolutely nothing to do with the cost! It’s a really simple concept to understand once you know it.
I repeat that the flights between Toronto and Tokyo are exactly the same (AC9 and AC2).
But it’s cheaper for them… and that’s completely logical and normal!
(It’s often an even bigger price difference for transatlantic flights, because Americans are used to paying less for their flights to Europe and Canadians are used to paying more…)
Why it’s normal for the same flights to be cheaper for Americans (and how you can save)
I know I’m repeating myself, but I’d really like you to understand this, for your own sake: the price of a plane ticket is always the maximum price that an airline can charge at a given time. Nothing else matters.
So it’s perfectly normal that Americans pay less!
There are 2 main reasons, but the first one is more important:
- Direct flights are more expensive
- Local airlines are more expensive
Direct flights are more expensive
Airlines can charge more for a direct flight!
People who want to make the fewest compromises, the least effort, be the least flexible, and have the most comfort, and who prioritize convenience and simplicity… want direct flights.
So it’s more expensive. That’s the most basic thing about flight prices, actually.
(And that’s why it doesn’t make sense to always take direct flights if you want to save money. That’s pretty simple too!)
I wish we had $1 for every time we read “but connecting flights involve more flights, so they should be more expensive”! It’s normal to think that, but the way plane ticket prices work is pretty unique! What it costs the airline is entirely irrelevant.
People are willing to pay more for direct flights, so direct flights are more expensive. It’s as simple as that.
That’s why, as a Canadian, if you want to save money on long-distance flights, connecting flights are almost always cheaper here too!
Local airlines are more expensive
Local airlines can charge more in their own country!
Even though travelers should enjoy stepping out of their comfort zone at least a little (that’s kind of the point of traveling)… people still love everything that’s familiar, unfortunately.
It’s the simple concept that explains why there are still people who choose the scam of paying in their currency abroad, who pay 15 times more by using their Canadian roaming plan for Internet access, why people withdraw cash before leaving their country at a worse rate, why restaurants with an English menu are twice as expensive as others, etc. In short, why so many other things are overpriced and cause almost everyone to pay far too much for their trips.
People will choose the airline they know over a foreign airline if the price is the same, so airlines have to offer lower prices in other countries. And so their flights are often more expensive in their own country than in other countries!
Especially in the USA, where flight prices are much lower because there’s more competition!
That’s why, as a Canadian, if you want to save money on long-distance flights, flights with foreign airlines are often cheaper here too!
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Summary
It’s so important to understand the basics of how plane ticket prices work when you want to get better at finding cheaper plane tickets. The price of a flight at the exact moment you search is always the maximum price the airline can charge. So it varies a lot and you need to be savvier than other travelers to save money.
What would you like to know about Air Canada flights sold to Americans at almost half the price? Tell us in the comments below.
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Featured image: Tokyo (photo credit: Unsplash+, edited by Flytrippers)
We were in Ireland in March. We (western Canadians) went via Boston because we had a visit there before and after.
However, in Ireland we were surprised at the number of travellers from the USA who had flown to Ireland on Air Canada, via Toronto. Sadly one couple missed their St.Patricks Day event (expensive) due to delays in Canada.
That is one downside to getting cheaper, in direct routing. Always give yourself extra time.
Yes, but really even with direct flights, the most basic thing about air travel is to not plan something important the same day or even early the next day. Delays and cancelations can always happen :/
So what do you think about booking a flight from an American city but not being on it? You get the lower price and just pick up the flight in the connecting city.
No, as soon as you miss a flight, the rest of the itinerary is canceled. It’s this way with all airlines, so that people don’t get around the pricing mechanism and get a direct flight at a connecting flight price.