Weather | Sports | Forums | Comics | Classifieds | Calendar | Movies
Carriers are using a host of promotions to win back traffic, but leisure class fare sales remain untapped.
By STEVE HUETTEL
© St. Petersburg Times, published October 4, 2001
Airlines have cut business fares, offered double frequent flier miles and even given away free tickets to New York to fill seats left empty since the Sept. 11 terrorist attacks.
But most major carriers haven't used one tried-and-true tactic: a big fare sale to attract price-sensitive leisure travelers.
"We're still waiting for the big one," said Terry Trippler, airline expert for the travel Web site OneTravel.com. "I've been expecting fares as good as we've seen in the last three years."
Travel agency owner Sylvia MacVettie of Pasco County also figured all the airlines would cut leisure fares to lure back nervous travelers after the terrorist attacks. She recently priced a trip to Costa Rica and was shocked that the best round-trip fare was $500.
"People are getting pretty discouraged," said MacVettie, owner of Travel Network Vacation Central. "We gave them $15-billion in tax breaks, they've laid off thousands of people and we continue to see higher air fares than before Sept. 11."
Airline officials won't talk about future fares, citing antitrust laws that prohibit price-fixing.
But travel professionals suggest a variety of reasons why most major airlines have resisted cutting leisure fares, at least so far.
The highly restricted, non-refundable fares bought by vacationers were at rock bottom before Sept. 11, said Jim Sweat, managing director of travel agency services for AAA Auto Club South.
Bargain hunters can find round-trip fares from Tampa to New York and Washington, D.C., for about $120 and tickets to West Coast destinations such as Los Angeles, Las Vegas and Seattle for about $200, he said.
By contrast, travel experts say, airlines recognized that walk-up fares frequently paid by business travelers were too expensive at a time when companies were cutting travel budgets.
"Airlines are trying very hard to find out if price matters and how much it matters," said Michael Levine, a former airline executive who teaches law at Harvard University. "Leisure fares are fairly close to business as usual. That doesn't mean no sales, but you won't see the whole country go on sale for 93 percent off."
The only major airline that launched a leisure fare sale reported Wednesday that its business improved rapidly.
Bookings at Southwest Airlines were down just 10 to 15 percent last week when the airline put tickets bought at least three days in advance on sale for $34 to $89, before taxes and fees. The week before, bookings were 60 percent below normal.
"Our bookings over the last several days are actually above our targets," said Gary Kelly, Southwest's chief financial officer. "I think (the sale) is working."
Tuesday, most carriers matched 50 percent discounts by United Airlines aimed at business travelers who don't want restricted tickets that require them to stay over a Saturday night.
They are offering the discount on full-fare coach tickets purchased at least 21 days in advance. Travelers must stay at least one or two days to qualify.
And American matched Delta's promotion that lowered the mileage frequent fliers need to qualify for free tickets. The carriers are offering domestic coach tickets for 15,000 miles instead of the usual 25,000 miles, and first-class tickets for 30,000 miles rather than 40,000 miles.
Delta and American also are giving their frequent flier program members double miles for travel through Nov. 15.
On Tuesday, Delta said it will give away 10,000 tickets for flights to New York in a "Delta Loves NY" promotion on its Web site and radio stations.
Even before this week, airlines were making special deals with their best corporate customers.
Airline sales representatives have sold walk-up tickets for the price of restricted leisure tickets, discounts as deep as 75 percent, said Sheila Kittle, vice president of corporate travel for Raymond James & Associates. She bought unrestricted tickets to Dallas and Chicago that would normally cost $1,500 for $400.
The company is getting deals even though it hasn't cut back on corporate travel since the terrorist attacks, she said.
"What's happened since Sept. 11 is unbelievable," Kittle said.
Mark Williams, travel director for PricewaterhouseCoopers, said the accounting giant also has received substantial discounts, but he doubts leisure travelers will be as fortunate.
"My sense is the airlines think leisure fares are so low there isn't that much more they can cut them," he said.
- Steve Huettel can be reached at huettel@sptimes.com or (813) 226-3384.