Calgary-Houston fare difference of $500
Even for the same section, the fare differs depending on which country you book the ticket in.
It’s a marketing strategy that airlines have been using for a long time, but many people still don’t know about it.
The Globe and Mail, a national magazine, introduced expert advice while telling the story of a Calgary businessman.
Michael Gillis (Calgary), who works as a broker in the oil industry, accessed United Airlines’ American version of the website early last month to book a Calgary-Houston flight because of a business trip.
After finding out that the fee was US$968 through a preliminary search, when he entered his Canadian credit card information, including his address in Calgary, the price jumped to US$1,774.
Even considering the exchange rate, it was about $500 in Canadian dollars, so he initially suspected something was wrong, and then called the Globe and Mail for help.
“It’s not surprising that prices vary depending on which country you’re booking your ticket from,” said aviation policy expert John Gredec.
As air demand differs depending on the country and region, many airlines use ‘resident fares’ marketing, which applies different fares depending on the ‘passenger’s residence’.
Gredec advised Mr. Gillis that he might be able to purchase a ticket at a lower price if he booked an air ticket through an American travel agent domiciled in the United States.