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Airfare...why so much cheaper from Europe???

I have been comparing airfares between Europe and the U.S with a friend of mine who lives in France.
We have discovered that there is a huge discrepancy in price between flying round trip to Europe from the U.S. and flying round trip to the U.S. from Europe.
For example, I just did two flight searches on Kayak.
LAX - Munich; round trip is $1363
Munich - LAX; round trip is $805
I have done searches on airline websites and found the same thing to be true.
Does anyone know what the reason for this is? Why am I paying +40% or so more for airfare because I'm flying from the US?

Posted by
8369 posts

I read an interesting article about this within the last month, but I can't remember where (grr!)

The quick summary is pretty much what you would expect. Supply and Demand. The airlines will charge as much as people will pay. The US airlines have become quite adept at capacity controls to keep demand up.

Posted by
20081 posts

Supply and demand. Demand is greater originating from N.A. than from Europe. Also, airlines have determined that we will pay it.

Posted by
225 posts

There was an article in the WSJ about two weeks ago about this. I tried to find a link but couldn't, but you might be able to find it on their website.

Posted by
8438 posts

Yes it was WSJ article. There was no answer to the question "why", since presumably, everyone who goes in one direction returns.

Posted by
23266 posts

Also, a different tax structure. You pay the taxes where you buy the ticket.

Posted by
5210 posts

Anita,
Interesting... I wonder if one would save money if one books a one- way ticket to Paris, then once in Paris
purchase a one-way ticket to the U.S?

Posted by
3391 posts

So funny you should say that Priscilla!
I spend half of my afternoon trying to "game" the system. The problem with a one-way ticket is that often when you land you have to show that you have a return ticket.
So I thought that I would try different cities to compare prices. Seems like the further east you fly in Europe the cheaper the tickets. Flying to Budapest is cheaper than Munich for example and Moscow is even cheaper than that...about $600 cheaper than Munich! Just have to find a route that has a layover in the city that you want and then get off and not catch the next leg. I'm sure the problem comes into play when the airline has no record of you continuing on the the final city and then again not getting on the return flight from the final city to the layover city. I would imagine that they would cancel your booking?
Anyone ever try this?
Maybe fly on to the final destination and take one of the super-cheap discount airlines to the city where you really want to be?
Hmmmmm......now I'm on a mission!

Posted by
693 posts

Just have to find a route that has a layover in the city that you want and then get off and not catch the next leg.

You will find all unused sectors on your booking cancelled (including your return flight to the US). Not an option!

Unfortunately, sometimes you win and sometimes you lose. US citizens have access to cheaper gas, cars, clothing, electronic equipment, ebooks, etc etc etc than nearly all other developed countries. Your exchange rate has also significantly strengthened making travel a relative bargain to many parts of the world.

Posted by
5381 posts

I think a major factor are school holidays in Europe. Kids only get off two months in the summer; there are also larger breaks over Easter and Christmas. If you try to fly from Europe to the US during these holidays, the prices are outrageous. If you fly from Europe to the US outside of these holiday times, the prices are much, much cheaper. So I guess that I am saying that for Europeans with families (or those of us who live in Europe and want to go home every once and a while), it doesn't feel very cheap.

Posted by
23266 posts

......often when you land you have to show that you have a return ticket. .......

That is frequently stated. How valid it is, I don't know. Maybe if you look like a back-packing student, that is a problem. But in dozens of entries to Europe over the past 20 years we have never been asked to show a return ticket.

Posted by
5381 posts

I have entered Europe probably 100 times in the last 20 years. Never been asked to show a return ticket.

Posted by
9099 posts

I have, three times. Once in Dublin, once at Gatwick, once at Heathrow. Last time was last year on a flight from Budapest to Gatwick. I wasn't allowed into the UK unless I showed proof of my flight from London back to the US.

Posted by
5835 posts

...wasn't allowed into the UK unless I showed proof of my flight from London back to the US.

UK immigration officers seemed to pay extra attention a long-haired bearded passenger with a big backpack that fit the "hippy" image. He was in the adjacent line and I overheard the dialog. He was asked to be specific about where he was planning to spend night etc. We were in line when he started the process and he was still being questioned after we were approved for entry

A return ticket is assurance to the host country that they aren't going to be stuck with someone camping in their parks.

Posted by
5678 posts

I think that the holiday seasons are a big part of the culprit. We have a very long summer break for our kids and so that keeps the prices up. The UK students (I don't know if Europe is the same) typically are in school through the end of June and are back in school in after the end of August Bank Holiday. I've heard many UK friends with children moan intensely about the air fares. They also raise the them for the winter holidays as well--particularly roundtrip Scotland to Spain! LOL.

Pam

Posted by
5678 posts

I think that the holiday seasons are a big part of the culprit. We have a very long summer break for our kids and so that keeps the prices up. The UK students (I don't know if Europe is the same) typically are in school through the end of June and are back in school in after the end of August Bank Holiday. I've heard many UK friends with children moan intensely about the air fares. They also raise the them for the winter holidays as well--particularly roundtrip Scotland to Spain! LOL.

Pam

Posted by
5678 posts

I think that the holiday seasons are a big part of the culprit. We have a very long summer break for our kids and so that keeps the prices up. The UK students (I don't know if Europe is the same) typically are in school through the end of June and are back in school in after the end of August Bank Holiday. I've heard many UK friends with children moan intensely about the air fares. They also raise the them for the winter holidays as well--particularly roundtrip Scotland to Spain! LOL.

Pam

Posted by
4824 posts

The reality of supply and demand economics since all the airline consolidations / mergers is that they control the supply so they can demand whatever price they want. TC

Posted by
638 posts

I've never been asked for my return ticket either but a simple solution to the return ticket/two one way flights dilemma is to have a printout of your confirmed reservation for your flight from Europe that you will show when you check in for the flight to North America, I would think that would suffice. For the most part this is how it's done now anyway.

Posted by
4535 posts

One way tickets are almost always more expensive. If you purchase multi-city tickets and don't use a leg, all other portions of the ticket are cancelled.

Never try to enter another country without some sort of proof that you will be leaving. They may rarely ask, but if they do and you don't have a good answer, you'll be catching the next flight back on your dime.

One trick to save money, recently shown on another thread here is to check flight prices in euro or the local currency. Buying, say an Air France ticket in euro may be cheaper after all the conversions that buying in US dollars. That probably doesn't work for US based carriers.

Posted by
4517 posts

One way tickets are almost always more expensive.

Not necessarily, low cost carriers Icelandair and Condor both price their flights from/to the US as 2 one ways (like Southwest does), so there is no "bonus" for buying a round trip or open jaw vs two one ways.

Posted by
7049 posts

Look carefully at the line item taxes and landing fees at European airports that are a part of each total ticket price and you'll have your answer. These are different across airports in the US and Canada as well.