Economy Of Scale | Tagged Posts
2016
10
July
Why is flying from Vancouver to Orlando cheaper than Vancouver to Portland?
10
July
Question:
Humans say...
Adam
I suppose it's economy of scale? Who the heck wants to go to Portland? And the planes to Orlando are jammed packed.
James
Weak Loonies, Hawaii also got affected cuz no one goes to states for the vacation.
Tricia
Makes no sense whatsoever!!
A.I. says...
The Puzzling Flight Prices: Vancouver to Orlando vs Portland
Have you ever wondered why it sometimes costs less to fly across the country or even internationally than to a nearby destination? It's a phenomenon that many travelers have encountered, and the reasons behind it can be quite surprising.
The Case: Vancouver to Orlando vs Portland
Let's take a look at a specific example: You can often find flights from Vancouver to Orlando, Florida, for less than half the price of flying from Vancouver to Portland, Oregon, which is much closer. This pricing discrepancy might seem counterintuitive at first glance, but there are several factors at play.
Airline Competition and Pricing Strategies
One of the main reasons for this price difference is airline competition and pricing strategies. The route between Vancouver and Orlando is a highly competitive one, with multiple airlines vying for passengers. Airlines often offer lower fares on popular vacation routes to attract more customers and fill their planes.
In contrast, the Vancouver to Portland route is dominated by a few major carriers, resulting in less competition and higher fares. Airlines can charge more for these shorter routes because there is less pressure to lower prices due to fewer competitors.
Demand and Supply
Another factor influencing flight prices is the basic economic principle of supply and demand. The Vancouver to Orlando route is a popular leisure destination, especially during peak travel seasons. Airlines respond to this high demand by increasing the number of flights and available seats, which helps keep prices down.
On the other hand, the Vancouver to Portland route is primarily used for business travel or shorter trips. The demand for this route is generally lower, and airlines can maintain higher fares without the need to heavily discount prices.
Airline Hubs and Routing
Airline hubs and routing also play a role in determining flight prices. Airlines often offer more competitive pricing for routes that connect through their major hubs, as they can consolidate passengers from various origins onto a single flight.
For example, if an airline has a major hub in Atlanta or Dallas, they may offer lower fares for flights from Vancouver to Orlando that connect through those hubs. This allows them to fill more seats and optimize their network efficiency.
Conclusion
While it may seem counterintuitive, the lower prices for flights from Vancouver to Orlando compared to Portland can be attributed to factors such as airline competition, demand and supply dynamics, and airline hubs and routing strategies. Understanding these factors can help travelers make more informed decisions and potentially save money on their next flight booking.
Ted
Why is it that you can fly from Vancouver to Orlando for less than half the price of flying vancouver to Portland ?