Why Almost Every Airline Has Sued This One Website

11 insights saved from this video by @business

@business· Business Models
Hidden-city ticketing is legal, yet violates the terms of service for all four major US carriers and many worldwide.
@business· Business Models
The identical flight can cost nearly half as much when sold as the first leg of another city’s itinerary.
@business· Business Models
Airlines charge more for nonstop flights even when those flights cost less to operate.
@business· Business Models
Hidden-city travel breaks airline pricing by filling the valuable nonstop segment and leaving the purchased connection empty.
@business· Business Models
Skiplagged has 10 million monthly users, with 30% booking hidden-city itineraries and saving $180 on average.
@business· Business Models
Detected hidden-city travel can cost travelers status, the full fare, or access to future tickets.
@business· Business Models
Airlines discount connecting fares to fill seats while charging more to travelers who strongly prefer nonstop service.
@business· Business Models
A hub-based monopoly can make nonstop fares expensive, while competing airlines drive fares to the same destination lower.
@business· Business Models
Lawsuits against Skiplagged generally failed on the core issue: hidden-city travel and explaining it are not illegal.
@business· Business Models
Airlines created hidden-city incentives through pricing and routing. Skiplagged did not create the underlying problem.
@business· Business Models
Hidden-city ticketing gets cheaper fares by booking a connection and skipping the final leg.

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