Updates
September 21, 2012: Speaking of gouging -- this has nothing to do with the Delta story, except for gouging. New York City is considering a $15 toll for the Verranzano Bridge (connects Staten Island and Brooklyn Island). This puts the story below in perspective.
September 19, 2012: As I comment below --
Now that I've had a night to sleep on it (the story), and given it a bit more thought, maybe it's not so bad. I realized when I first read the story these prices were targeted for businessmen on an expense account. It's a lot cheaper than owning one's own jet.
I can't get too excited. I over-reacted when I posted the story. As others have noted, this price will bring in competitors, and over time the prices should drop.
With regard to hotel/man-camp prices: if the $70 figure is accurate, I encourage folks to check the rates of hotels/motels in cities where the unemployment rate is less than 5%.I will leave the original post up, for archival purposes. [I took my older granddaughter horseback riding last weekend; it was an awesome experience. I thought the price for riding was very, very fair, but yet, it was expensive. But, like flying to Williston, it was much less expensive to rent a horse for one day of riding, than to own the horse which would probably be ridden once a week at most.]
Bottom line: I have no problem with airlines charging what they do. Life goes on.
Original Post
Delta has announced prices for the Minneapolis to Williston flights: $550 to $700. The article does not say if that is round trip. It sounds like a one-way ticket the way the article is written but I could be wrong.
A one-way Boston-to-Los Angeles flight can be bought for $199. That's coast-to-coast. A $700 flight from Minneapolis to Williston is unconscionable. Even Delta had this to say:
Representatives with Delta say the nonstops aren’t just a way to get people to Williston, but to get those doing business there, to key markets around the world.Sure. And the government looks into gouging when service stations raise the price of gasoline along a hurricane evacuation route. Gimme a break. This makes Amtrak look like a bargain.
Remember, that's just the flight from Minneapolis. If you live in Texas or Louisiana, you still have to pay for a flight to get to Minneapolis. I hope the $700 ticket includes an in-flight meal.
A huge "thank you" for a reader sending me this link.
Guess every landlord in Williston is a gouger too then?
ReplyDeleteWilliston to MSP will be expensive if bought within 3 weeks of the flight. But guess what, its expensive to fly to MSP from anywhere in ND without advance purchasing and Sat night stay. Great Lakes and Delta have similar pricing. Check a MSP roundtrip to Fargo. Only can be bought in expensively with a Sat night stay, just like almost all other tickets.
A flight in December from Williston to Houston will be $460 roundtrip, same as United with advance purchase and Sat night stay.
It is almost always cheaper to fly through a hub and connect than go direct. Just bought a ticket round trip from the Asheville NC area to ND for $360. Normally that flight is more like $600. Out of Atlanta or Nashville the price is $550 at best, but those locales are usually much cheaper.
Delta is no more gouging Williston than Halliburton is gouging EOG.
I can't remember if I posted my comments regarding housing or not. But, yes, the same goes for housing. Unconscionable.
DeleteThis is just the latest example of the reality that the pricing model for literally every product and service in western north Dakota is to charge whatever the market will bear. Cost plus a reasonable markup is out the window.
ReplyDeleteTo show how crazy this has become, I live in san diego. Tonight at the local watering hole just down the street from where I live, I struck up conversation with the guy next to me at the lunch counter (a random person who I had never met before}. He was a plumbing contractor and just got back from a job installing a sewer system for a man camp near watford city. Bottom line was that the whole experience was bizare. 70$ a night for his room at the man camp. Population of watford city up like 10x. All men, no women.
I wonder how much more needs to happen before someone decides that this whole thing has gone just a little too far?
Again, I agree. Thank you for taking time to comment.
DeleteA somewhat similar situation in Billings several years ago. United had the only Billings to Denver non-stop. Delta & NW also flew it via Salt Lake or Minneapolis with their connections and plane changes making this trip four to six hours. On the other hand, UAL's non-stop flight was only an hour.
ReplyDeleteUnited charged more for their convenience. Though they kept increasing it until it became ridiculous. Ultimately it was so bad you could buy a United RT ticket from Billings to Los Angeles, Dallas, or New York for less than their Denver flight! This was even though all of those other United flights required a connection in Denver.
Though the market corrects excesses when given the chance. After about a year of this gouging a small commuter line started offering the same non-stop. Naturally before long United's fares came back to earth. So if Delta can fill their $700 flight don't be surprised to see someone else start competing in that market.
Not much else to add, from me. We'll see how this plays out.
DeleteI think one factor that is driving these high prices is that the average individual making this trip is on business and on some type of company expense account. The rest of us just have to deal with consequences. Also, they know that due to the few flights available, they know the seats will be sold out most likely. Hotel accomodations in Williston is probably much higher that ones you would find in other cities.
ReplyDeleteGreat post; thank you.
DeleteNow that I've had a night to sleep on it (the story), and given it a bit more thought, maybe it's not so bad. I realized when I first read the story these prices were targeted for businessmen on an expense account.
I can't get too excited. I over-reacted when I posted the story. As others have noted, this price will bring in competitors, and over time the prices should drop.
With regard to hotel/man-camp prices: if the $70 figure is accurate, I encourage folks to check the rates of hotels/motels in cities where the unemployment rate is less than 5%.
$70 for a room for a night is reasonable if you compare it to motels anywhere. Fargo, Minneapolis, Denver, wherever. The prices being charged in the oilfield are a simple matter of supply and demand. At least you can come here and work and earn a living, unlike 95% of the rest of this country!!
ReplyDeleteYes, I agree. The $70 (if accurate) is a far cry from the $100 - $150 that was being quoted a year ago. Crew camps provide much, much more than a motel in terms of laundry, meals, security, etc.
DeleteI'm quite impressed the price has come down this much.