Air France now has a secondary marketplace for airfare tickets, will WOW air survive the winter?

Posted on October 24, 2018 by in Air France, Air France/KLM Flying Blue

– I have been mentioning a ‘reseller marketplace for non-refundable airline tickets’ to airlines for some time and now Air France has taken the plunge on this

The value proposition is clear – customers will more likely buy a ticket if they can get (some) money back if they decide to resell a ticket. Sometimes they may even make a profit! You can buy/sell almost anything in a secondary marketplace (i.e. concert tickets) but not airline tickets as airliens impose restrictions for name changes.

Airlines can only overbook a small percentage of the flight without running into issues (that’s especially an issue in a high season demand scenario were every seat gets sold).

However the current implementation FlexFly is presenting is poor (even for a beta). There are precious few tickets on offer and they seem rather expensive. I’m confident a start-up airline that pushes this a way to sell more tickets quicker (to improve their cash flow) will eventually succeed. However Air France will likely kill their secondary marketplace off in a few weeks when ‘Revenue Management’ goes on a stampede. Let’s see.

– I’m not so confident that WOW Air will be around after the coming North Atlantic winter (with low yields usually)

The airline is cutting three routes to the US entirely and cutting Dallas and JFK to seasonal (there is still a Newark service).

Icelandic LCC WOW Air is adjusting services on North American routes and plans to cancel three US services from Reykjavik Keflavik to Cincinnati (Ohio), St. Louis (Missouri) and Cleveland (Ohio). Flights to New York JFK and Dallas (Texas) will become seasonal services.

PR project manager María Margrét Jóhannsdóttir told ATW the changes were made because “the routes did not achieve profit targets set by the airline.

There is talk that the New Delhi route performs very well as it gets a lot of connecting passengers. WOW Air is selling Round Trip tickets for under $500 from India to the US in a market where the typical far rarely dips under $600-$650. Indian consumers are very price sensitive (as are Chinese consumers).

Maybe this will be a lifeline for WOW Air after the legacy airlines have decided to kill the trans-Atlantic LCCs with sub $300 Round Trips from the US to Europe.

About the author: Torsten is a serial entrepreneur who started almost a dozen ventures on four continents. Torsten's love for travel has brought him to 130+ countries and travel with most of the world's airlines. You can reach Torsten at [email protected]

This post has been tagged with:
| | | | | | | | | | |

Don't miss - more topics from Mighty Travels

AAdvantage | Aegean Airlines | Aeromexico | Aeroplan | Air Canada | Air China | Air France | Air France/KLM Flying Blue | Air India | Air New Zealand | AirAsia | AirBnB | Airline Reviews | Alaska Airlines | Alaska Mileage Plan | Alitalia | American Airlines | American Express | American Express Membership Rewards | ANA | Asia Miles | Asiana Airlines | Avianca | Avios | Avis | Award Booking | Bank Bonuses | Best coffee | Best Rate Guarantee | Best Western | British Airways (BA) | Capital One | Cash Back Deals | Cathay Pacific Reviews | Chase Sapphire Reserve | Chase Ultimate Rewards | Cheap flights | Cheap Passport Photos | Cheap Visas | Checking Accounts/ Bank Bonuses | China Airlines Review | Choice Hotels | Choice Privileges | Citibank | Club Carlson / Radisson | Credit Card Deals | Currency Arbitrage | Delta Airlines | Delta Skymiles | Destinations & Inspiration | Emirates Reviews & Skywards | Error Fares / Mistake Fares | Etihad Reviews & Etihad Guest | Expedia Coupons | Fare Monitoring Service | Frequent Flyer Programs | Fuel surcharges | Getaround | Google ITA Matrix | Hainan Airlines | Hawaiian Airlines | HHonors | Hilton Honors | Hilton Hotels | Hotel Corporate Codes | Hotel Deals | Hotel Friends & Family Discounts | Hotel Loyalty Programs | Hotel Reviews | Hyatt | Iberia | IHG Rewards Club | Immigration & Airport Security | Immunization | Japan Airlines | Jetblue TrueBlue | Krisflyer | Lifemiles | Lounge Reviews | Low Cost Airlines | Lufthansa Miles and More | Malaysia Airlines | Manufactured Spend | Marriott Hotels | Mighty Travels Premium | Mileage Plus | Mistake Fares | Mountain Gorillas | Norwegian | Online Shopping Mall Deals | Orbitz Coupons & Deals | Priority Pass Lounges | Qantas | Qatar Airways | Radisson Rewards | Rapid Rewards | Ryanair | Saudia | Singapore Airlines | South African Airways | Southwest Rapid Rewards | Sri Lankan | StarHOT | StarwoodONE | ThankYou Points | Things to Do (City Guides) | TOP Travel Destinations | Travel Agent Rate | Travel Deals | Travel Insurance | Travel News | Travel Tech | Turkish Airlines Review | Uber | United Airlines | United Mileage Plus | World of Hyatt | Wyndham Hotels | Wyndham Rewards |