Traveling can be exciting, but it can also be stressful, especially when it comes to buying a plane ticket. The cost of airfare can vary greatly depending on factors such as the time of year, day and time of departure, and the number of stops involved. Sometimes even just changing the arrival or departure airport can significantly affect the price. Additionally, where you choose to book your flight can also make a difference. In most cases, it is cheaper to book through a third-party website rather than directly from the airline. A 2023 study conducted by Self compared 25 popular routes originating from New York’s JFK airport, Chicago-O’Hare (ORD), and LAX in Los Angeles and found that booking through third-party apps could save travelers over 20%, with a few exceptions.
For example, flights from New York to Tokyo and Chicago to Hong Kong had significant savings when booked through third-party sites or apps. However, one outlier was Air France’s non-stop flight from LAX to Charles De Gaulle airport in Paris (CDG), which was almost $200 cheaper when purchased directly from the airline.
Among the third-party websites, Booking. com consistently provided the best deals. This company also owns other well-known travel sites such as Kayak, Priceline, and Agoda. In a spot-check, a round-trip economy class ticket from Los Angeles (LAX) to Dulles Airport in Washington D. C. (IAD) on American Airlines was priced at $537 when purchased directly from the airline. However, the same flight was only $416 on Booking. com, $463 through Expedia, and $442 via Agoda. Kayak also offered the same flight for $537, matching the airline’s direct purchase price.
But why are third-party sites able to offer cheaper flights? One reason is that booking through an airline can be more expensive due to added convenience. When you book directly, you have the advantage of dealing with the airline’s customer service staff if you need to make any changes to your travel plans. Third-party sites, on the other hand, often have complex and confusing change policies, processes, and fees. Additionally, purchasing from the airline itself may also open up opportunities for helpful add-ons, such as onboard WiFi, premium seating, and airport lounge access.
Third-party sites are able to offer cheaper flights due to their partnerships with airlines and other travel companies. This is why they often promote bundle deals with hotels, resorts, and rental car companies. They also benefit from purchasing seats in bulk and reselling them at a profit, as well as using Global Distribution Systems (GDS) for real-time price and inventory information. However, airlines have some control over the cost of third-party app flights through fare class visibility. This allows them to sell seats with better profit margins by issuing special fare offers.
