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NFT: Passenger Sued for Skiplagging Flight, Lufthansa cracks down

Stan in LA : 2/13/2019 1:36 pm
Quote:
Lufthansa is cracking down on a way for airline passengers to get cheaper fares—with a lawsuit that brings fresh attention to the practice. Airlines put a premium on nonstop flights, and "skiplagging" passengers exploit that practice by booking flights with a layover, and then skipping the last leg of the flight. The German airline is suing a passenger who booked a Seattle-Frankfurt-Oslo flight, then saved money by skipping the last leg of the flight and taking another flight to his real destination, Berlin, CNN reports. Lufthansa, which is seeking $2,385 compensation, says the passenger violated terms and conditions.

The terms and conditions of some airlines state that passengers who buy a ticket have agreed to complete their journeys. The Telegraph reports that there are some ways the strategy, also known as "hidden city" flying, can backfire. If passengers miss the first leg of a flight, the entire journey is canceled—and unless they restrict themselves to carry-on baggage only, their luggage will go to the wrong city. The Lufthansa passenger's case was dismissed by a court in Berlin last year, but an airline spokesperson tells CNN that the company has decided to appeal. (United Airlines sued a website that took advantage of the trick in 2014, but the case was thrown out of court the following year.)

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RE: also never understood why so often its more expensive  
BleedBlue : 2/13/2019 4:12 pm : link
In comment 14295849 MetsAreBack said:
Quote:
to fly one way between cities than to get the round trip price. Essentially airlines are for some reason paying you to come back home with them.

Makes no sense.


well they know you need to come home lol...rather grab you for something as opposed to having a bad flight experience and choosing a diff airline for way back.
Question about the layover  
Bill L : 2/13/2019 4:16 pm : link
Does it cause any issues if the numbers don't match up? For example, if you've checked in and are on the manifest for the second leg, do they hold the plane departure or have any responsibility if you don't get on the plane for the final destination? Do they have accounting errors for food etc.? I can't imagine anyone planning to do this would check a bag but what happens if you're forced to gate check all the way through?
RE: also never understood why so often its more expensive  
Jim in Fairfax : 2/13/2019 4:20 pm : link
In comment 14295849 MetsAreBack said:
Quote:
to fly one way between cities than to get the round trip price. Essentially airlines are for some reason paying you to come back home with them.

Makes no sense.

It’s because business travelers are much more likely to book one way tickets, and they are (or were) less price sensitive.

Domestically, the round trip/one way disparity has largely diminished. Still a big difference on international trips.
It kills..  
FatMan in Charlotte : 2/13/2019 4:26 pm : link
me the airlines are pissed off about this.

How many times do they have ads that say "Fly to Miami for $49" only to read the fine print and they mean one-way. So in reality it is at least $98, and more like $135 or higher after taxes.
RE: how about instead of suing passengers  
DonQuixote : 2/13/2019 4:56 pm : link
In comment 14295848 MetsAreBack said:
Quote:
airlines fix glitches in their system that essentially have them paying passengers for that last leg of a flight (?)

I did this a few years ago with American - for whatever reason it was cheaper to fly from Grand Cayman through Philly to NYC, but stay over in Philly the night before the flight to LGA the next afternoon... than to go direct from GC to LGA.

We simply flew into Philly and drove home after Customs...

That American was essentially paying me to take their flight from Philly to LGA the next afternoon is not my problem or contractual duty.


This
Technically, the practice is forbidden by most airline contracts of  
regulator : 2/13/2019 11:03 pm : link
carriage.

It's the intent part that is difficult to demonstrate; that is, to show that the ticketing behavior was deliberately undertaken with the purpose of circumventing the airline's pricing. Airline pricing is an incredibly complex beast that practically takes a Ph.D. to comprehend.

The important thing to understand, from a pricing standpoint, is that the airline doesn't consider you a passenger from Newark-Atlanta-Cancun; you're a Newark-Cancun passenger and the pricing for that itinerary reflects the Newark-Cancun market. Similarly, the pricing on Newark-Atlanta (even if it's a nonstop flight) is reflective of pricing in that market, which in some cases can be higher on the nonstop sector than a one-stop itinerary with a routing that encompasses a higher-priced nonstop (e.g. EWR-ATL-CUN with a more expensive EWR-ATL segment if sold individually). Nonstop flights tend to attract a premium over multi-stop flights.

It's a consequence of the hub-and-spoke model, which developed to consolidate traffic over a single airport to create viable itineraries on routes that could never sustain nonstop service in their own right. For instance, Charlotte is a big local market, but without connecting traffic, it could never sustain an airline operation with 700+ daily flights (AA). The majority of passengers transiting these hubs are only there to change planes.

Anyway, if airline pricing were to be revised into what some might consider a more "logical" scheme (e.g., more transparent pricing on a segment-by-segment basis), which would theoretically eliminate the hidden-city ticketing loophole, the hub-and-spoke model would collapse. I could get into the specifics as to why, but that would be a post completely irrelevant to a football message board and would be way too long for anyone to actually want to read.

Suffice to say that hidden-city ticketing, for this reason, is historically viewed by US carriers as "cost of doing business." As time went on, airlines got wise to the practice and started canceling downline segments in an itinerary after a flight is "skipped", or refused to check bags to intermediate stops absent extended layovers.

Now, more sophisticated software makes it easier to track repeat offenders, and prohibiting the practice in the terms of the contract of carriage establishes a legal predicate for airlines to ban passengers, cancel frequent flyer accounts and even pursue other avenues to recover what the airline considers "lost revenue." Some of these commercial measures, especially booting people from membership in frequent flyer programs, have been explicitly protected under the law, all the way up to the Supreme Court.

IMO, the whole point of the Lufthansa lawsuit and the present appeal is to create awareness and generate media attention in the hope it will deter passengers from engaging in the practice. In all likelihood, LH won't be suing anyone else (partly because I don't think they'll win their appeal) but if it causes some people to avoid hidden-city ticketing in the future, then it will have achieved the desired effect.
RE: RE: He probably  
santacruzom : 2/14/2019 3:01 am : link
In comment 14295758 Stan in LA said:
Quote:
In comment 14295705 Joey in VA said:


Quote:


Can't break tackles either.


Dead horse, meet Joey.


You have to admit, you've earned it. How many times did you talk about Barkley not being able to break tackles? 50? Talk about beating a dead horse.
Airlines probably lose more in bad publicity than they would gain  
Ira : 2/14/2019 5:06 am : link
even if they one these kind of suits.
So let me get this straight,  
section125 : 2/14/2019 6:48 am : link
the airline sold a ticket to a man who then decided not to use (part of) it? Now they want to sue him for not using his full ticket?

What am I missing? What money did they lose? The seat was paid for. Are they saying they could have charged more money for the seat on each leg so that the combined fares for both legs was significantly higher than the complete one way fare? Sounds like they have a pricing problem.

RE: So let me get this straight,  
mfsd : 2/14/2019 7:07 am : link
In comment 14296306 section125 said:
Quote:
the airline sold a ticket to a man who then decided not to use (part of) it? Now they want to sue him for not using his full ticket?

What am I missing? What money did they lose? The seat was paid for. Are they saying they could have charged more money for the seat on each leg so that the combined fares for both legs was significantly higher than the complete one way fare? Sounds like they have a pricing problem.


I just heard about this practice "skip-lagging" over dinner with friends last week. Apparently there's now an app (of course) to help you find deals this way.

That's exactly what the airlines are trying to stem the tide of. Essentially, smart consumers found a way to take advantage of a quirk in their pricing methods.

As others have said, I don't see how airlines could actually win in court (they can't claim you're required to get back on a plane), but if there's an electronic paper trail showing travelers booked their ticket for this specific reason, maybe they have grounds.

The friend who was telling me about it regularly flies from NY to Miami for a significant discount by booking flights to the Bahamas that connect in Miami, which apparently is often half the price of a direct flight to Miami.

The rub is of course you can't check bags, or they'll go through to final destination. You have to deal with the risk of getting your carry-on bag "gate-checked" bc overhead bins are full...so anyone doing this has to commit to the aggressive jockeying for position at the boarding gate
RE: So let me get this straight,  
mfsd : 2/14/2019 7:14 am : link
In comment 14296306 section125 said:
Quote:
the airline sold a ticket to a man who then decided not to use (part of) it? Now they want to sue him for not using his full ticket?

What am I missing? What money did they lose? The seat was paid for. Are they saying they could have charged more money for the seat on each leg so that the combined fares for both legs was significantly higher than the complete one way fare? Sounds like they have a pricing problem.


And I think you're essentially right - the airlines figure they could have sold the connecting seat for the cost of a direct ticket.

This happening on occasion has likely been chalked up to cost of doing business, but now that it's becoming more common the airlines are reacting.
I used to have to travel from Cranford, Nj to Vineland, NJ several  
wgenesis123 : 2/14/2019 7:52 am : link
trips a year. I had to take a train to New York, than a bus to Atlantic City where I changed over to a bus to Vineland, NJ. Well anytime I could I would jump on a Casino bus going from the Cranford area to Atlantic City for 17 dollars, get the vouchers on the bus, go in the casino and get my two rolls of quarters and walk two blocks to catch my bus to Vineland, NJ. The Casino bus saved me hours of travel time, essentially paid me 3 dollars, and I did not ride the Casino bus back to New York. Should I be sued?
RE: I used to have to travel from Cranford, Nj to Vineland, NJ several  
NYG27 : 2/14/2019 8:25 am : link
wgenesis123 said:
Quote:
trips a year. I had to take a train to New York, than a bus to Atlantic City where I changed over to a bus to Vineland, NJ. Well anytime I could I would jump on a Casino bus going from the Cranford area to Atlantic City for 17 dollars, get the vouchers on the bus, go in the casino and get my two rolls of quarters and walk two blocks to catch my bus to Vineland, NJ. The Casino bus saved me hours of travel time, essentially paid me 3 dollars, and I did not ride the Casino bus back to New York. Should I be sued?


Man, those casino buses were awesome! In the 90's, there was one casino bus that offered $15 and lunch voucher on a $17 ticket to Atlantic City every Wednesday. They also offered another $5 voucher on the way back (to entice another future visit).

In effect, I was getting paid $3 with a free lunch just to hang around Atlantic City every Wednesday as a teenager during the summer months.
They used to run..  
FatMan in Charlotte : 2/14/2019 8:58 am : link
flights from Charlotte to the casinos in Mississippi.

$125 for the flight with $125 in casino vouchers. I was in my mid-20's at the time, the youngest person on the plane - BY FAR, and made a crapload playing poker. It was essentially a free day trip
RE: RE: So let me get this straight,  
Really : 2/14/2019 9:08 am : link
In comment 14296314 mfsd said:
Quote:
In comment 14296306 section125 said:


Quote:


the airline sold a ticket to a man who then decided not to use (part of) it? Now they want to sue him for not using his full ticket?

What am I missing? What money did they lose? The seat was paid for. Are they saying they could have charged more money for the seat on each leg so that the combined fares for both legs was significantly higher than the complete one way fare? Sounds like they have a pricing problem.




And I think you're essentially right - the airlines figure they could have sold the connecting seat for the cost of a direct ticket.

This happening on occasion has likely been chalked up to cost of doing business, but now that it's becoming more common the airlines are reacting.


But what about the gas that’s being saved by the airline for having a “lighter” cabin?

Isn’t that the rationale they rely on for charging for overweight bags?
Here’s a crude illustration of the way airlines look at it  
regulator : 2/14/2019 9:22 am : link
My wife shops at a Wegman’s from time to time, and they let you scoop grains into a bag, weigh them and print a label for checkout. When printing the label, you select your particular grain, and away you go.

She tells me that when she needs quinoa, she will instead select steel-cut oats at the scale, which look exactly like quinoa but are 1/2 the price. It’s her little form of protest over what she perceives to be extortionate pricing (yet still shops there). The cashiers can’t tell the difference and she feels better about saving a buck or two.

Hidden city ticketing is the same concept. The airline’s inventory controls are much more complex than XXX > YYY + YYY > ZZZ, so if you buy a ticket with the express purpose of circumventing published pricing, it’s in violation of your contract with the airline. Equity aside, a breach is breach, and airline passengers implicitly agree to the contract or carriage with each ticket purchase.

Like I said, most airlines look the other way (or don’t even notice), but people can and do get in trouble when the practice is taken to excess.
RE: RE: So let me get this straight,  
Bill L : 2/14/2019 9:30 am : link
In comment 14296310 mfsd said:
Quote:
In comment 14296306 section125 said:


Quote:


the airline sold a ticket to a man who then decided not to use (part of) it? Now they want to sue him for not using his full ticket?

What am I missing? What money did they lose? The seat was paid for. Are they saying they could have charged more money for the seat on each leg so that the combined fares for both legs was significantly higher than the complete one way fare? Sounds like they have a pricing problem.




I just heard about this practice "skip-lagging" over dinner with friends last week. Apparently there's now an app (of course) to help you find deals this way.

That's exactly what the airlines are trying to stem the tide of. Essentially, smart consumers found a way to take advantage of a quirk in their pricing methods.

As others have said, I don't see how airlines could actually win in court (they can't claim you're required to get back on a plane), but if there's an electronic paper trail showing travelers booked their ticket for this specific reason, maybe they have grounds.

The friend who was telling me about it regularly flies from NY to Miami for a significant discount by booking flights to the Bahamas that connect in Miami, which apparently is often half the price of a direct flight to Miami.

The rub is of course you can't check bags, or they'll go through to final destination. You have to deal with the risk of getting your carry-on bag "gate-checked" bc overhead bins are full...so anyone doing this has to commit to the aggressive jockeying for position at the boarding gate


I wouldn't say "smart". Or maybe I would add "unethical" rather than use it to replace "smart". But either way...
RE: Here’s a crude illustration of the way airlines look at it  
Bill L : 2/14/2019 9:33 am : link
In comment 14296400 regulator said:
Quote:
My wife shops at a Wegman’s from time to time, and they let you scoop grains into a bag, weigh them and print a label for checkout. When printing the label, you select your particular grain, and away you go.

She tells me that when she needs quinoa, she will instead select steel-cut oats at the scale, which look exactly like quinoa but are 1/2 the price. It’s her little form of protest over what she perceives to be extortionate pricing (yet still shops there). The cashiers can’t tell the difference and she feels better about saving a buck or two.

Hidden city ticketing is the same concept. The airline’s inventory controls are much more complex than XXX > YYY + YYY > ZZZ, so if you buy a ticket with the express purpose of circumventing published pricing, it’s in violation of your contract with the airline. Equity aside, a breach is breach, and airline passengers implicitly agree to the contract or carriage with each ticket purchase.

Like I said, most airlines look the other way (or don’t even notice), but people can and do get in trouble when the practice is taken to excess.


Now, if she went into a clothing store and took the ticket off of a designer dress and replaced it with a ticket from a clearance rack dress, is that an acceptable protest too?
regulator...  
Dan in the Springs : 2/14/2019 9:40 am : link
thanks for your explanations. What you're wife is doing reminds me of a kid I know who, back in the 80's, would take price stickers off one thing and put it on another, then buy it for profit. Does she ever feel wrong about doing that?

Anyway, it seems the airlines have an easy fix for this. Why do they feel the need to publish the locations of their layovers? What are they worried would happen if they simply told their passengers that they were providing service from A to B and that it includes a 2 hour layover in C, without disclosing the location of C?

Also, Lufthansa may be doing a disservice, as by highlighting the practice they are possibly educating even more passengers on a loophole in their pricing structure? Do they feel the cat is already out of the bag so to speak?
RE: regulator...  
ron mexico : 2/14/2019 10:00 am : link
In comment 14296423 Dan in the Springs said:
Quote:
thanks for your explanations. What you're wife is doing reminds me of a kid I know who, back in the 80's, would take price stickers off one thing and put it on another, then buy it for profit. Does she ever feel wrong about doing that?

Anyway, it seems the airlines have an easy fix for this. Why do they feel the need to publish the locations of their layovers? What are they worried would happen if they simply told their passengers that they were providing service from A to B and that it includes a 2 hour layover in C, without disclosing the location of C?

Also, Lufthansa may be doing a disservice, as by highlighting the practice they are possibly educating even more passengers on a loophole in their pricing structure? Do they feel the cat is already out of the bag so to speak?


They have to tell you the flight numbers of each leg. From that info you can find out where its going even if the airlines try to hide it.

RE: RE: regulator...  
Dan in the Springs : 2/14/2019 10:02 am : link
In comment 14296456 ron mexico said:
Quote:
In comment 14296423 Dan in the Springs said:


Quote:


thanks for your explanations. What you're wife is doing reminds me of a kid I know who, back in the 80's, would take price stickers off one thing and put it on another, then buy it for profit. Does she ever feel wrong about doing that?

Anyway, it seems the airlines have an easy fix for this. Why do they feel the need to publish the locations of their layovers? What are they worried would happen if they simply told their passengers that they were providing service from A to B and that it includes a 2 hour layover in C, without disclosing the location of C?

Also, Lufthansa may be doing a disservice, as by highlighting the practice they are possibly educating even more passengers on a loophole in their pricing structure? Do they feel the cat is already out of the bag so to speak?



They have to tell you the flight numbers of each leg. From that info you can find out where its going even if the airlines try to hide it.


Why do they have to tell you the flight numbers prior to purchase?
RE: RE: regulator...  
regulator : 2/14/2019 10:11 am : link
In comment 14296456 ron mexico said:
Quote:
In comment 14296423 Dan in the Springs said:


Quote:


thanks for your explanations. What you're wife is doing reminds me of a kid I know who, back in the 80's, would take price stickers off one thing and put it on another, then buy it for profit. Does she ever feel wrong about doing that?

Anyway, it seems the airlines have an easy fix for this. Why do they feel the need to publish the locations of their layovers? What are they worried would happen if they simply told their passengers that they were providing service from A to B and that it includes a 2 hour layover in C, without disclosing the location of C?

Also, Lufthansa may be doing a disservice, as by highlighting the practice they are possibly educating even more passengers on a loophole in their pricing structure? Do they feel the cat is already out of the bag so to speak?



They have to tell you the flight numbers of each leg. From that info you can find out where its going even if the airlines try to hide it.


There’s nothing to hide. If you buy a ticket from Newark to Chicago to Green Bay, you’re getting transportation from Newark to Green Bay. The transfer point is immaterial. If one treats it as a flight from Newark to Chicago with an option to continue to Green Bay, solely for the purpose of avoiding a higher fare on Newark to Chicago (if priced individually), then that’s a breach of the contract of carriage, and the passenger doing so proceeds at his own risk. The odds of the airline noticing are extremely remote, and more remote still is the possibility of the airline taking action. In this case, Lufthansa is simply attempting to enforce the contract of carriage, much like any other kind of commercial dispute. It just happens to be extraordinarily rare in this context.

Still, whether right or wrong, fair or unfair, it’s written into the contract. I’m just trying to illustrate the basis for the airline’s claim.
RE: RE: Here’s a crude illustration of the way airlines look at it  
regulator : 2/14/2019 10:18 am : link
In comment 14296418 Bill L said:
Quote:
In comment 14296400 regulator said:


Quote:


My wife shops at a Wegman’s from time to time, and they let you scoop grains into a bag, weigh them and print a label for checkout. When printing the label, you select your particular grain, and away you go.

She tells me that when she needs quinoa, she will instead select steel-cut oats at the scale, which look exactly like quinoa but are 1/2 the price. It’s her little form of protest over what she perceives to be extortionate pricing (yet still shops there). The cashiers can’t tell the difference and she feels better about saving a buck or two.

Hidden city ticketing is the same concept. The airline’s inventory controls are much more complex than XXX > YYY + YYY > ZZZ, so if you buy a ticket with the express purpose of circumventing published pricing, it’s in violation of your contract with the airline. Equity aside, a breach is breach, and airline passengers implicitly agree to the contract or carriage with each ticket purchase.

Like I said, most airlines look the other way (or don’t even notice), but people can and do get in trouble when the practice is taken to excess.



Now, if she went into a clothing store and took the ticket off of a designer dress and replaced it with a ticket from a clearance rack dress, is that an acceptable protest too?


I think you underscore exactly what I’m trying to say.

Her practice is wrong and I don’t condone it, nor do I engage in it. But she’s an adult and if she wants to proceed with that course of conduct, she’s free to. It’s also a form of theft. Taken to an extreme, as in your example, it’s a far more egregious Such that nobody would disagree with the notion.

That illustration is also the functional equivalent of hidden-city ticketing with airlines. The passenger is intentionally engaging in deceptive conduct to secure a more favorable price for a good or service, in this case, air travel.

It’s not a criminal offense per se, but it’s a direct breach of the contract between the airline and the passenger.
RE: RE: RE: regulator...  
Dan in the Springs : 2/14/2019 10:31 am : link
In comment 14296465 regulator said:
Quote:
In comment 14296456 ron mexico said:


Quote:


In comment 14296423 Dan in the Springs said:


Quote:


thanks for your explanations. What you're wife is doing reminds me of a kid I know who, back in the 80's, would take price stickers off one thing and put it on another, then buy it for profit. Does she ever feel wrong about doing that?

Anyway, it seems the airlines have an easy fix for this. Why do they feel the need to publish the locations of their layovers? What are they worried would happen if they simply told their passengers that they were providing service from A to B and that it includes a 2 hour layover in C, without disclosing the location of C?

Also, Lufthansa may be doing a disservice, as by highlighting the practice they are possibly educating even more passengers on a loophole in their pricing structure? Do they feel the cat is already out of the bag so to speak?



They have to tell you the flight numbers of each leg. From that info you can find out where its going even if the airlines try to hide it.




There’s nothing to hide. If you buy a ticket from Newark to Chicago to Green Bay, you’re getting transportation from Newark to Green Bay.


If we agree that the transfer point is immaterial, why would they have to publish it prior to the purchase of the ticket? Doing so would seem to enable the kind of manipulation they are complaining about.

Wish I could get an answer to that question. Not satisfied with the response from ron mexico - I don't know why the fare has to include all details - why can't they simply post destinations and prices prior to purchase and not include flight numbers and other details?
I'm not an expert to answer authoritativly  
ron mexico : 2/14/2019 10:36 am : link
But I don't see how they can run any booking system without unique identifiers. What if multiple travels want to make sure they are on the same flight but in separate reservations?

Anyway the routes are standard and the capabilities for data scrapping and analysis today are so strong it would be very difficult to hide the info.

But it could just as easily be a regulation that it needs to be provided.



You'd have..  
FatMan in Charlotte : 2/14/2019 10:39 am : link
to disclose the layover destination:

Quote:
There’s nothing to hide. If you buy a ticket from Newark to Chicago to Green Bay, you’re getting transportation from Newark to Green Bay.


A lot of times, I make a choice in flights based on what the connecting airport is, especially if there is weather predicted. Plus, what if you have contacts you'd like to meet at a connecting airport?

A passenger shouldn't be spinning the wheel of uncertainty just getting to the final destination. No more so that if you took a bus route from Charlotte to NY without an itinerary and ended up going through Chicago to loop back around.
RE: You'd have..  
Bill L : 2/14/2019 11:23 am : link
In comment 14296493 FatMan in Charlotte said:
Quote:
to disclose the layover destination:



Quote:


There’s nothing to hide. If you buy a ticket from Newark to Chicago to Green Bay, you’re getting transportation from Newark to Green Bay.



A lot of times, I make a choice in flights based on what the connecting airport is, especially if there is weather predicted. Plus, what if you have contacts you'd like to meet at a connecting airport?

A passenger shouldn't be spinning the wheel of uncertainty just getting to the final destination. No more so that if you took a bus route from Charlotte to NY without an itinerary and ended up going through Chicago to loop back around.


I feel like that would be similar to my response to your gender neutral thread. Rather than tackling the actual problem, whether it be sexist stereotypes or cheating flyers, you do stupid workaround that impact a vastly larger number of people.
its debatable if this practice should be considered cheating  
ron mexico : 2/14/2019 11:25 am : link
the courts so far have confirmed it is not.

So the solution seems to be the airlines can fix their pricing practices or go pound sand.
RE: RE: Here’s a crude illustration of the way airlines look at it  
regulator : 2/14/2019 11:26 am : link
In comment 14296418 Bill L said:
Quote:
In comment 14296400 regulator said:


Quote:


My wife shops at a Wegman’s from time to time, and they let you scoop grains into a bag, weigh them and print a label for checkout. When printing the label, you select your particular grain, and away you go.

She tells me that when she needs quinoa, she will instead select steel-cut oats at the scale, which look exactly like quinoa but are 1/2 the price. It’s her little form of protest over what she perceives to be extortionate pricing (yet still shops there). The cashiers can’t tell the difference and she feels better about saving a buck or two.

Hidden city ticketing is the same concept. The airline’s inventory controls are much more complex than XXX > YYY + YYY > ZZZ, so if you buy a ticket with the express purpose of circumventing published pricing, it’s in violation of your contract with the airline. Equity aside, a breach is breach, and airline passengers implicitly agree to the contract or carriage with each ticket purchase.

Like I said, most airlines look the other way (or don’t even notice), but people can and do get in trouble when the practice is taken to excess.



Now, if she went into a clothing store and took the ticket off of a designer dress and replaced it with a ticket from a clearance rack dress, is that an acceptable protest too?


You’re absolutely right and I think you underscore my point. I don’t condone the practice, nor do I engage in it, but she’s an adult and if she chooses to do so, it’s at her own risk. Your example takes the concept to an extreme, but it’s still theft.

Put differently, it’s intentionally engaging in a deceptive practice to obtain certain goods (or services) for a different price than what the merchant charges.

The airline example isn’t a criminal offense per se, but it’s in violation of s contract a passenger enters when a ticket is purchased. It’s breach, whether the airline chooses to enforce it or not. In a similar vein, if the practice I illustrated in my example were to cause significant losses to Wegman’s, would anyone object to cashiers inspecting such self-weighed/labeled items to make sure they are consistent with customer representations? And if they weren’t, would Wegman’s be within their rights to insist the customer pay the published price for what they intended to buy? If the customer refused, what would be their grounds for doing so?

As a corollary to that, I’d pose this question to the group: how is the scenario I give (as an example) fundamentally different from hidden-city ticketing?
its fundamentally different  
ron mexico : 2/14/2019 11:32 am : link
in that they are using less than the total of what was purchased, not more.
Wouldn't a better example..  
FatMan in Charlotte : 2/14/2019 11:37 am : link
be if your wife goes into a grocery store and sees quinoa on sale for buy one get one free in a 12oz box for $1.99 and a 16 oz box priced at $2.09

She buys the two boxes and promptly throws the second box out. The store claims she should have to buy the 16 oz. box.

That's sort of what I see. The passenger has paid a specific price for a flight and only uses part of it. It has been paid for and should be up to the passenger what to do with it.
RE: You'd have..  
regulator : 2/14/2019 11:37 am : link
In comment 14296493 FatMan in Charlotte said:
Quote:
to disclose the layover destination:



Quote:


There’s nothing to hide. If you buy a ticket from Newark to Chicago to Green Bay, you’re getting transportation from Newark to Green Bay.



A lot of times, I make a choice in flights based on what the connecting airport is, especially if there is weather predicted. Plus, what if you have contacts you'd like to meet at a connecting airport?

A passenger shouldn't be spinning the wheel of uncertainty just getting to the final destination. No more so that if you took a bus route from Charlotte to NY without an itinerary and ended up going through Chicago to loop back around.


Correct, but even if you’re choosing to transfer at a specific airport (how I like connecting at Denver, while I avoid O’Hare in the winter and DFW in the summer) it’s still within the context of travel to a final destination. It’s immaterial insofar as your ticket is a continuous transit from your origin to destination.

If you book travel to a final destination with the express purpose of terminating travel at an intermediate stop to circumvent published pricing (i.e., to secure a cheaper fare), it’s breach. If the airline can prove it by a preponderance or evidence, then damages can be awarded.

The reason why many of these cases have been dismissed is because *proving* intent is the difficult part. So airlines more frequently will just cancel frequent flyer program membership, or engage in other commercial measures, rather than pursue legal remedies. Courts routinely uphold that airlines are within their rights to cancel memberships and ban passengers, so it’s a much more effective punishment with little to no burden of proof, and far less costly in terms of money and bad PR, than suing a passenger. That’s why this Lufthansa case is somewhat unique.
RE: Wouldn't a better example..  
regulator : 2/14/2019 11:53 am : link
In comment 14296564 FatMan in Charlotte said:
Quote:
be if your wife goes into a grocery store and sees quinoa on sale for buy one get one free in a 12oz box for $1.99 and a 16 oz box priced at $2.09

She buys the two boxes and promptly throws the second box out. The store claims she should have to buy the 16 oz. box.

That's sort of what I see. The passenger has paid a specific price for a flight and only uses part of it. It has been paid for and should be up to the passenger what to do with it.


I know what you’re saying, and to the average person outside of the airline industry, the pricing model is counterintuitive, irrational and arcane. There’s really no way to manipulate that scenario perfectly to fit the airline business because of the nature of the product, so there will be holes in the logic no matter how it’s laid out.

Still, the airline looks at systemwide ASM (available seat-miles) as its product and uses complex revenue management software to assign prices to that inventory across the whole network, rather than on a segment-by-segment basis in order to enable the entire hub-and-spoke model. As we see that model has certain weaknesses, one of which is hidden-city ticketing, and that weakness is relatively easy to exploit. So, the airlines have instituted certain business practices to discourage gaming the system to the detriment of revenue generation.

There’s also a slightly more complex economic argument that I’ll try to make later once I’m behind a keyboard rather than sitting on a train with my phone. Stand by...
Couldn't the airlines just backcharge you for the trip  
Bill L : 2/14/2019 12:08 pm : link
that you actually took?
RE: Couldn't the airlines just backcharge you for the trip  
Jim in Fairfax : 2/14/2019 12:16 pm : link
In comment 14296625 Bill L said:
Quote:
that you actually took?

The amount sought in the lawsuit was for the fare the person would have paid had they booked the trip they actually took.
RE: RE: Couldn't the airlines just backcharge you for the trip  
Bill L : 2/14/2019 12:23 pm : link
In comment 14296633 Jim in Fairfax said:
Quote:
In comment 14296625 Bill L said:


Quote:


that you actually took?


The amount sought in the lawsuit was for the fare the person would have paid had they booked the trip they actually took.
Well then, put me on the jury. Plaintiff all the way.
RE: Wouldn't a better example..  
giants#1 : 2/14/2019 12:27 pm : link
In comment 14296564 FatMan in Charlotte said:
Quote:
be if your wife goes into a grocery store and sees quinoa on sale for buy one get one free in a 12oz box for $1.99 and a 16 oz box priced at $2.09

She buys the two boxes and promptly throws the second box out. The store claims she should have to buy the 16 oz. box.

That's sort of what I see. The passenger has paid a specific price for a flight and only uses part of it. It has been paid for and should be up to the passenger what to do with it.


Except instead of throwing the 2nd box out, she just leaves the 2nd box at the register on her way out.
Trying to put airline pricing into logical terms is a fool's errand  
regulator : 2/14/2019 2:05 pm : link
the nature of the business, especially the hub-and-spoke model, is so complex that there's really no better way to execute it, and this system inherently creates loopholes that enterprising consumers have long exploited, and the airlines have generally looked the other way, aside from rare circumstances like this. There's no way this will be a common practice going forward.

Revenue management software for airlines must forecast demand and price thousands of potential city pairs and tens of thousands of potential routings in such a way that maximizes the revenue generated by each seat flown by the airline. Individual markets are affected by demand seasonality, irregular spikes, booking patters (leisure vs. business), capacity, competition (stimulating demand), etc. There are millions of variables and the systems used by airlines are reasonably good at maximizing revenue per seat, but the result of these mostly-automated pricing decisions, fare rules and inventory allocation will, from time to time, yield what appear to be irrational pricing, such as the hidden-city phenomenon.

I recognize the fact that people generally hate airlines, and air travel often elicits emotional responses possibly associated with past negative experiences, but the fact remains that this practice is expressly prohibited in the contract of carriage between the airline and the passengers. As a matter of law, these contracts are held to be valid and enforceable. If the passenger's motivation (based on a pattern of behavior) is to engage in this ticketing practice deliberately, for the purpose of avoiding a higher fare in the market he actually intends to fly, why would the business not be justified in taking action against the passenger?

There's no property right to a particular seat over a particular routing; generally speaking the published fare on the itineraries is between point of origin and destination with a series of permissible transfer points.
RE: RE: He probably  
chopperhatch : 2/14/2019 2:10 pm : link
In comment 14295758 Stan in LA said:
Quote:
In comment 14295705 Joey in VA said:


Quote:


Can't break tackles either.


Dead horse, meet Joey.


Now you're talking to dead animals...while n0t entirely unexpected from you, its still not a good look.
RE: RE: RE: regulator...  
TEPLimey : 2/14/2019 3:10 pm : link
In comment 14296465 regulator said:
Quote:
There’s nothing to hide. If you buy a ticket from Newark to Chicago to Green Bay, you’re getting transportation from Newark to Green Bay. The transfer point is immaterial. If one treats it as a flight from Newark to Chicago with an option to continue to Green Bay, solely for the purpose of avoiding a higher fare on Newark to Chicago (if priced individually), then that’s a breach of the contract of carriage, and the passenger doing so proceeds at his own risk. The odds of the airline noticing are extremely remote, and more remote still is the possibility of the airline taking action. In this case, Lufthansa is simply attempting to enforce the contract of carriage, much like any other kind of commercial dispute. It just happens to be extraordinarily rare in this context.

Still, whether right or wrong, fair or unfair, it’s written into the contract. I’m just trying to illustrate the basis for the airline’s claim.

The flaw in this analysis is the presumption that the customer had a contractual obligation to complete the flight. I do not think they do.

If the passenger failed to get on the first leg of the flight and stayed in Newark, has he/she breached the contract with the carrier? No.

If the passenger failed to take the second leg because of sudden illness, family emergency, being inattentive, or some other non-fare related reason, have they breached the contract? No.

I don't think even the finest print can impose a contractual obligation on an individual to require that they must take the second leg of the flight but only depending on their state of mind. The contract imposes an obligation to act or not act. I cannot imagine one that requires the counterparty to act based on their subjective state of mind at the time, much less one that forcibly compels someone to complete the last leg of the flight under threat of financial penalty.
It would not be a penalty  
Bill L : 2/14/2019 3:19 pm : link
it would be a price adjustment for the product actually purchased.
RE: RE: RE: RE: regulator...  
regulator : 2/14/2019 3:33 pm : link
In comment 14296800 TEPLimey said:
Quote:
In comment 14296465 regulator said:


Quote:


There’s nothing to hide. If you buy a ticket from Newark to Chicago to Green Bay, you’re getting transportation from Newark to Green Bay. The transfer point is immaterial. If one treats it as a flight from Newark to Chicago with an option to continue to Green Bay, solely for the purpose of avoiding a higher fare on Newark to Chicago (if priced individually), then that’s a breach of the contract of carriage, and the passenger doing so proceeds at his own risk. The odds of the airline noticing are extremely remote, and more remote still is the possibility of the airline taking action. In this case, Lufthansa is simply attempting to enforce the contract of carriage, much like any other kind of commercial dispute. It just happens to be extraordinarily rare in this context.

Still, whether right or wrong, fair or unfair, it’s written into the contract. I’m just trying to illustrate the basis for the airline’s claim.


The flaw in this analysis is the presumption that the customer had a contractual obligation to complete the flight. I do not think they do.

If the passenger failed to get on the first leg of the flight and stayed in Newark, has he/she breached the contract with the carrier? No.

If the passenger failed to take the second leg because of sudden illness, family emergency, being inattentive, or some other non-fare related reason, have they breached the contract? No.

I don't think even the finest print can impose a contractual obligation on an individual to require that they must take the second leg of the flight but only depending on their state of mind. The contract imposes an obligation to act or not act. I cannot imagine one that requires the counterparty to act based on their subjective state of mind at the time, much less one that forcibly compels someone to complete the last leg of the flight under threat of financial penalty.


No, airline contracts of carriage do not impose an obligation to *complete* the journey as ticketed, but the breach occurs when the passenger deliberately books a certain itinerary to circumvent the published fare on the actual intended flights on the day of travel.

That language is contained here:

American

Quote:
Exploiting fare rules
Reservations made to exploit or circumvent fare and ticket rules are strictly prohibited.

Examples include (but are not limited to):

Purchase a ticket without intending to fly all flights to gain lower fares (hidden cities)
Buy a ticket without intent to travel, including to gain access to our airport lounges or other facilities
Combine 2 or more roundtrip excursion fares end-to-end to circumvent minimum stay requirements (back-to-back ticketing)
Book a ticket in someone's name without the person's consent (which is illegal)
Hold reservations for reasons including securing upgrades, blocking seats or obtaining lower fares
If we find evidence that you or your agent are using an exploitive practice, we reserve the right to:

Cancel any unused part of the ticket
Refuse to let the passenger fly and check bags
Not refund an otherwise refundable ticket
Charge you for what the ticket would have cost if you hadn't booked it fraudulently.


United

Quote:
Prohibited Practices:
Fares apply for travel only between the points for which they are published. Tickets may not be purchased and used at fare(s) from an initial departure point on the Ticket which is before the Passenger’s actual point of origin of travel, or to a more distant point(s) than the Passenger’s actual destination being traveled even when the purchase and use of such Tickets would produce a lower fare. This practice is known as “Hidden Cities Ticketing” or “Point Beyond Ticketing” and is prohibited by UA.
The purchase and use of round-trip Tickets for the purpose of one-way travel only, known as “Throwaway Ticketing” is prohibited by UA.
The use of Flight Coupons from two or more different Tickets issued at round trip fares for the purpose of circumventing applicable tariff rules (such as advance purchase/minimum stay requirements) commonly referred to as “Back-to-Back Ticketing” is prohibited by UA.
The failure to comply with applicable stayover requirements, the failure to meet the purpose or status requirement associated with the Ticket’s fare category, and the purchase or use of a Ticket that UA determines circumvents the applicable fare rules.
Any practice that United believes, in its sole discretion, is exploitative, abusive or that manipulates/bypasses/overrides United’s fare and ticket rules.
UA’s Remedies for Violation(s) of Rules - Where a Ticket is purchased and used in violation of the law, these rules or any fare rule (including Hidden Cities Ticketing, Point Beyond Ticketing, Throwaway Ticketing, or Back-to-Back Ticketing), UA, without notice to the passenger, has the right in its sole discretion to take all actions permitted by law, including but not limited to, the following:
Invalidate the Ticket(s);
Cancel any remaining portion of the Passenger’s itinerary;
Confiscate any unused Flight Coupons;
Permanently ban or refuse to board the Passenger and to carry the Passenger’s baggage, unless the difference between the fare paid and the fare for transportation used is collected prior to boarding;
Assess the Passenger for the actual value of the Ticket which shall be the difference between the lowest fare applicable to the Passenger’s actual itinerary and the fare actually paid;
Delete miles in the Passenger’s frequent flyer account (UA’s MileagePlus Program), revoke the Passenger’s Elite status, if any, in the MileagePlus Program, terminate the Passenger’s participation in the MileagePlus Program, terminate any other air transportation agreement between UA and the Passenger, or take any other action permitted by the MileagePlus Program Rules in UA’s “MileagePlus Rules;” and
Take legal action with respect to the Passenger.


Delta

Quote:
C) Circumvention of Published Fares

Delta prohibits ticketing practices intended to circumvent the published fare that Delta intends to offer for your true itinerary. These practices include, but are not limited to:

1) Back to Back Ticketing - The purchase or usage of two or more tickets issued at round trip fares, or the combination of two or more round trip fares end to end on the same ticket for the purpose of circumventing minimum stay requirements.

2) Throwaway Ticketing - The purchase or usage of round trip fares for one way travel.

3) Hidden City/Point Beyond Ticketing - The purchase or usage of a fare from a point before the passenger's actual origin or to a point beyond the passenger's actual destination.


As I've said, the reason US carriers generally don't sue for breach of contract in this case is because proving intent is difficult (and costly), while other remedies, such as dumping FF accounts and revoking membership, can be done with virtual impunity if a pattern of behavior is discovered.

The important thing to remember is that hidden-city ticketing isn't just about carelessly missing a flight, it's booking an itinerary a passenger does not intend to fly solely for the purpose of avoiding a higher published fare on the routing the passenger actually intends to fly.
Maybe they should create a "blackball list"  
Bill L : 2/14/2019 3:37 pm : link
for passengers who do this. That would curtail it without imposing problems on normal passengers.
RE: They used to run..  
JayBinQueens : 2/14/2019 3:41 pm : link
In comment 14296372 FatMan in Charlotte said:
Quote:
flights from Charlotte to the casinos in Mississippi.

$125 for the flight with $125 in casino vouchers. I was in my mid-20's at the time, the youngest person on the plane - BY FAR, and made a crapload playing poker. It was essentially a free day trip


Interesting - they'd let you use the voucher for table games? That's a steal
Yep..  
FatMan in Charlotte : 2/14/2019 3:45 pm : link
it was a "free" trip and the ability to eat crawfish!!
RE: Maybe they should create a  
ron mexico : 2/14/2019 3:46 pm : link
In comment 14296835 Bill L said:
Quote:
for passengers who do this. That would curtail it without imposing problems on normal passengers.


It sounds like that is exactly what they do in most instances.
RE: RE: They used to run..  
Bill L : 2/14/2019 3:47 pm : link
In comment 14296838 JayBinQueens said:
Quote:
In comment 14296372 FatMan in Charlotte said:


Quote:


flights from Charlotte to the casinos in Mississippi.

$125 for the flight with $125 in casino vouchers. I was in my mid-20's at the time, the youngest person on the plane - BY FAR, and made a crapload playing poker. It was essentially a free day trip



Interesting - they'd let you use the voucher for table games? That's a steal


I remember in the 80"s we could take a bus from DC to AC (which was still fairly new at the time). It cost something like $20 round trip but they gave us $20 in quarters.

Not knowing anything about tables, my wife and I spent the quarters on slots in minutes plus the few dollars of our own that we brought. That was like 10 AM by that time. So, with no money we had to wait until 5 PM to take the bus home. AC was such a shithole back then and we had to hang around with absolutely nothing to do. It was a terrible trip.

OTOH, in college a couple of my fraternity brothers went on a free cruise to Bermuda (maybe it was the Bahamas) based purely on the promise that they had to spend X amount of time in the ship casino. Worked out great for them.
RE: RE: RE: RE: RE: regulator...  
MetsAreBack : 2/14/2019 5:51 pm : link
In comment 14296830 regulator said:
Quote:


The important thing to remember is that hidden-city ticketing isn't just about carelessly missing a flight, it's booking an itinerary a passenger does not intend to fly solely for the purpose of avoiding a higher published fare on the routing the passenger actually intends to fly.


So what?

As FMIC said earlier, lets say someone wants to drink 1L of Coke - that bottle costs $1. But the 2L bottle of coke is currently on sale for 90 cents. So what does the consumer do? He/he naturally buys the 2L bottle... and maybe they throw it out after drinking the Liter they wanted. So the fuck what.

If an airline is stupid enough to price A to B (and then to C) cheaper than A to B... that's on them. Clearly they're just trying to price gouge consumers on the A to B direct to begin with since they're going to let "C" customers fly that exact same route so much cheaper.
I deal with pricing...  
FatMan in Charlotte : 2/14/2019 6:40 pm : link
issues all the time and we have to be ever vigilant for areas where you could have a form of arbitrage.

For example, our organization has a price for Asia quoted in dollars, but a price for Japan quoted in Yen. We have to make sure they are equivalent. In the past, we had Japanese customers purchase at the Asia price which was several thousand dollars less, and then resell at a large profit.

The burden to price correctly in the rest of the world fall to the companies, not the individual
RE: RE: Maybe they should create a  
Bill L : 2/14/2019 7:58 pm : link
In comment 14296845 ron mexico said:
Quote:
In comment 14296835 Bill L said:


Quote:


for passengers who do this. That would curtail it without imposing problems on normal passengers.



It sounds like that is exactly what they do in most instances.

I think they ban you from that airline. I mean a shared blackball list across all airlines. It’s a shared problem it seems
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