Is a $786 one-way flight out of Puerto Rico price gouging? Airlines say no

[thelakelander]

When singer Ricky Martin tweeted a screenshot of $2,000-plus fares from San Juan, Puerto Rico, to Miami, he added his voice to the chorus that sings whenever a natural disaster, frustrated travelers and the economics of airline pricing come together.

Their anthem? "Price Gouging."

"THIS IS NOT RIGHT," Martin tweeted, all caps. "WE ARE IN THE MIDDLE OF A HUMANITARIAN CRISIS. THERE SHOULD BE LAWS AGAINST THIS."

The tweet, posted Monday at 12:47 p.m., had earned more than 13,000 "likes" and more than 6,300 retweets 24 hours later. The protest closely mirrored another in the days before Hurricane Irma hit Florida, when comedian Chelsea Handler tweeted a screenshot of a $3,258.50 Delta Air Lines flight from Miami to Phoenix, calling on a boycott of the airline — albeit with more colorful language than Martin.

Full article: http://www.miamiherald.com/news/business/article175537221.html

[Jim]

Isn't that about the usual cost for one way business/first class without a 14 day booking reservation?

[ben says]

Isn't that about the usual cost for one way business/first class without a 14 day booking reservation?

Yes

[Lunican]

I think the point is that they should be helping and not running their regular fare algorithm. What is the normal price of a cruise?

http://www.actionnewsjax.com/news/trending-now/royal-caribbean-cancels-cruise-uses-ship-for-puerto-rico-hurricane-relief/615996813

[Jim]

I think the point is that they should be helping and not running their regular fare algorithm. What is the normal price of a cruise?

http://www.actionnewsjax.com/news/trending-now/royal-caribbean-cancels-cruise-uses-ship-for-puerto-rico-hurricane-relief/615996813

While I agree that it would be a great gesture for them to use their 14 day advance purchase and/or round trip fares, it's not price gouging as Ricky Martin and others claimed.

[ben says]

I think the point is that they should be helping and not running their regular fare algorithm. What is the normal price of a cruise?

http://www.actionnewsjax.com/news/trending-now/royal-caribbean-cancels-cruise-uses-ship-for-puerto-rico-hurricane-relief/615996813

While I agree that it would be a great gesture for them to use their 14 day advance purchase and/or round trip fares, it's not price gouging as Ricky Martin and others claimed.

+1

[DeathByPensions]

I always hate this argument.

Price Gouging unless you are talking about a monopoly operating entirely under the motivation of evil is a dumb term.

I would deliver a package of medicine to Guam for example for a minimum payment of $100. If news came out that North Korea had a missile pointed towards Guam, I would deliver the package for a minimum of $300. I am under no obligation to anyone in a free country to risk my life for normal pay. The most humanitarian thing to do is let the prices rise to the level that as many people possible are incentivized to deliver the packages.

In this case you have an industry that operates at a 1% profit margin made up of pilots, airline attendants and airport workers who didn't sign up as first responders, have families and can't be expected to fly into a disaster zone for normal wages. If Ricky Martin had his way and prices were $800, airlines would just stop sending planes and everyone on the island would be screwed. Higher prices get a ton more planes to where they are needed most.

[Jim]

I always hate this argument.

Price Gouging unless you are talking about a monopoly operating entirely under the motivation of evil is a dumb term.

I would deliver a package of medicine to Guam for example for a minimum payment of $100. If news came out that North Korea had a missile pointed towards Guam, I would deliver the package for a minimum of $300. I am under no obligation to anyone in a free country to risk my life for normal pay. The most humanitarian thing to do is let the prices rise to the level that as many people possible are incentivized to deliver the packages.

In this case you have an industry that operates at a 1% profit margin made up of pilots, airline attendants and airport workers who didn't sign up as first responders, have families and can't be expected to fly into a disaster zone for normal wages. If Ricky Martin had his way and prices were $800, airlines would just stop sending planes and everyone on the island would be screwed. Higher prices get a ton more planes to where they are needed most.

The airlines were in no imminent danger of flight but the passengers were without electricity and quick access to money.  No, you do not rise prices unless you need to raise prices and there was no need to raise prices....nor did they.  These were standard, one-way, no-advance purchase ticket prices.

And if an airline did jack up their prices 300% for disaster stricken passengers, you can bet their would be boycotts, a fired CEO and a different carrier would move in on the market promising to never jack their prices up during an emergency. To say nothing of the fact it would cause an inquest because it's illegal during a disaster.