- Tripologist
Opinion
Michael Gebicki
,
or subscribe
to save articles for later.
Save articles for later
Add articles to your saved list and come back to them any time.
Why is it that a return fare usually costs less than the sum of two one-way fares over the same route?
Because airlines know you’re almost certainly travelling both ways, and they want to make sure you’re sitting in one of their seats for both legs of your journey. Buying the whole is cheaper than buying two halves. The same principle applies whether you’re buying an airfare or a watermelon.
This produces some eye-watering results. A return economy flight with Qantas from Melbourne to Singapore, departing on May 1 and returning on May 15 starts from $944. To book a one-way fare with Qantas, Melbourne to Singapore on May 1, the cheapest fare is $477. Not too bad at about half the cost of the return fare.
However, for the return sector, the cheapest one-way ticket with Qantas from Singapore to Melbourne on May 15 with Qantas costs $898. The price to book one-way tickets on both the outward and return journeys, would be $1375 – $431 more than a return ticket. For a Singapore Airlines flight for the return leg, the fare starts from $824.
An even more extreme example, a return fare from Sydney to Los Angeles with United Airlines departing on May 1, returning on May 15, starts from $1257. But a one-way fare from Sydney to Los Angeles with United departing on May 1 costs $1491. The flight from Los Angeles to Sydney on May 15 is another pocket scorcher, priced at $1253, just $4 less than the return fare.
Business class flyers who book one-way fares also take a big hit. A return business class ticket from Melbourne to Singapore with Singapore Airlines on May 1-May 15 starts from $3592. Booking one-way fares for those dates, the total cost starts from $5738.
Loading
Business travellers need to fly when work demands it. They might not know beforehand when a particular project, negotiation or meeting will be over. In that case, they’re likely to book an outward flight and then wait until their business is concluded to book their back-to-base ticket. Those flyers are less price sensitive than leisure travellers, as their company picks up the tab and so airlines jack up the one-way ticket price to maximise revenue from those who need flexibility.
Low-cost carriers are different
Advertisem*nt
Flying with a low-cost carrier, the round-trip airfare is usually the sum of the two sectors. Those airlines price their fares sector by sector, without penalising passengers who fly one way rather than return.
The choice to fly with a full-service carrier is usually made because they offer superior service, or through loyalty. Budget airlines know passengers choose them because they offer the cheapest price.
A return fare with budget carrier Scoot from Melbourne to Singapore, departing May 1 and returning May 15, starts from $524. That’s the same as one-way tickets in each direction.
Loading
A return fare from Sydney to Cairns with Virgin Australia for May 1-15 starts from $278, which is the same as Virgin’s one-way fares for outgoing and returning flights. In this case, VA is operating as a low-cost carrier, putting it head to head with Jetstar, and it is betting customers would rather fly with them.
But booking a one-way flight back from Cairns to Sydney at the last minute could bring sticker shock. One-way fares are also subject to dynamic pricing. If the flight was to fill up, the airfare for a late booking could go sky high. Loyalty points with the airline could be used to book a return flight for the likely return date at the same time as the outward booking is made. If the return flight is changed or cancelled by the customer, those points will usually be reinstated, although some might disappear as a processing fee.
Sign up for the Traveller newsletter
The latest travel news, tips and inspiration delivered to your inbox. Sign up now.
Most viewed on Traveller
Loading
