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House Price Crash Forum

Deflation Is Here With A Vengeance .....


LuckyOne

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HOLA441

BA have a big sale on at the moment. I think that it expires tonight.

Two First Class return tickets (LHR/LAX/LHR) cost the same (assuming some flexibility around dates) as one return Club World ticket on the same flight last year.

One return Club World LHR/LAX/LHR ticket costs 32% of what it cost last year (again assuming some flexibility around dates) or a 68% discount.

I really wish that house prices would follow suit.

I understand that premium class airfares and house prices aren't well correlated in the short term but the prices that the market can bear for either of them have to be driven by similar underlying economic fundamentals.

There are two conflicting opinions about the state of the economy :

- BA are effectively telling us that the economy is in such dire straits that they have had to knock 2/3 off the cost of premium class seats on long haul routes.

- The housing market is telling us that we have turned the corner and that the previous 25% discount from peak prices is no longer required. The current discount has been reduced to 15%.

My guess is that BA are correct in their assessment and that the housing market is wrong but only time will tell.

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HOLA442
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HOLA445
Fantastic isn't it. I shall be using them again this week. They've provided me with a few good bargains this year.

I just got a quote from BA for a flight to perth, internal hop to Adelaide and back to the Uk for £40 less than I paid in 2001.

Same price with Qantas but Id rather fly BA - their service is miles better than Con Air

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HOLA446
- BA are effectively telling us that the economy is in such dire straits that they have had to knock 2/3 off the cost of premium class seats on long haul routes.

A seat that flies empty makes no money. A seat that flies occupied by someone who is paying 2/3 less than they would have done a few years ago makes some money. Ergo they're just reducing the price to the point at which they can fill the seat.

Premium class air travel is a discretionary spend. Housing is not.

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HOLA447
I just got a quote from BA for a flight to perth, internal hop to Adelaide and back to the Uk for £40 less than I paid in 2001.

Same price with Qantas but Id rather fly BA - their service is miles better than Con Air

I'd be surprised if it was cheaper than Emirates, and with Emirates you get the A380.

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HOLA448
I just got a quote from BA for a flight to perth, internal hop to Adelaide and back to the Uk for £40 less than I paid in 2001.

Same price with Qantas but Id rather fly BA - their service is miles better than Con Air

BA don't fly to Perth - it'll be a One World ticket and you'll probably end up on Qantas metal anyway.

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HOLA449
A seat that flies empty makes no money. A seat that flies occupied by someone who is paying 2/3 less than they would have done a few years ago makes some money. Ergo they're just reducing the price to the point at which they can fill the seat.

Premium class air travel is a discretionary spend. Housing is not.

I look at housing slightly differently. I see it as having both a non-discretionary component (shelter and warmth) and a discretionary component (location, square foootage etc).

The larger the proportion of the price accounted for by discretionary components, the higher the correlation between house prices and other discretionary luxuries.

The prices of expensive houses should be at larger risk to the downside than the prices of less expensive houses.

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HOLA4410

For what it's worth - I received an online survey from BA this morning. The majority of questions centered around business travel flights compared to their rivals (the US companies, Lufthansa, Air France, etc).

In all cases, where possible, I ticked replies saying that BA was too expensive compared to the others. :lol::lol::lol:

Hopefully an organised effort will make their yield software blow a gasket and see prices fall still further :D

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HOLA4411
In all cases, where possible, I ticked replies saying that BA was too expensive compared to the others. :lol::lol::lol:

You cruel S.O.B. immo!

I would never single out BA for such treatment.

I do it to all of them :)

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I guess it depends on the flights that you are looking at, I've been hoping to get a return to Bangkok in November, only to find the price has gone from £1200 return for 2 in Premium Economy 2 months ago, to £6,889 today IN THE SALE!

Leaving 11 Nov, returning 25 Nov, I see the following (total for 2 pax) at www.ba.com :

- Economy : £1,320

- Premium economy : £2,092

- Club : £4,740

- First : £7,740

Not as much of a discount on the BKK route as the LAX route where there is probably more over capacity but my guess is that the discount in Club and First is pushing 50% to BKK compared to last year.

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Guest DissipatedYouthIsValuable
Me too. Certainly brought down my weekly spend on long haul flights.

I know, I thought I might have to give up golf in Florida altogether, but thankfully I can still afford business/club.

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HOLA4418

British Airways?

Their flights are often code-shared to budget airlines now. I've had this experience myself after paying BA's hefty price for return tickets to Barcelona, only to be shunted onto a budget Spanish airline.

So, might look like a bargain on the Internet.

Until you see the Aeroflot plane you'll be travelling in.

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I guess it depends on the flights that you are looking at, I've been hoping to get a return to Bangkok in November, only to find the price has gone from £1200 return for 2 in Premium Economy 2 months ago, to £6,889 today IN THE SALE!

NM

you should try Air Asia if you dont mind slumming it. I only have outbound flights to Kuala Lumpur in November which I bought in June for £390 for 2 persons total. I imagine you could get the connection to Bangkok for around £40 each , each way.

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