written by Sally Black

• International Flights
  In foreign countries there is a far greater demand for International travel. Geography is basically the reason for this. America is so big that most Americans fly within it's borders. Only 20% of the flights taken by Americans are to foreign countries. Most of our world neighbors fly Internationally, more than 80% of the time. The difference in these markets creates a different kind of supply and demand for International flights. This is why the pricing strategies used by travelers to save money on Domestic US airlines are completely different from those used for International flights. Unlike the deregulated US airlines, foreign airlines operate under strict International treaties, local government controls and organizational treaties.

• What is IATA?
  The International Air Transport Association or IATA acts like the “UN” of world airlines. All major foreign airlines and every US-based airline operating scheduled International passenger flights voluntarily joins IATA. In theory IATA promotes “open markets”, “free trade”, and “open skies” between its member airlines. By getting airlines to cooperate, it fosters the fixed pricing of airline seats. This is often smiled upon by foreign governments, many of which own controlling interest in the “official” airline for their country. As a condition of membership in IATA, airlines agree to sell tickets only at IATA-approved prices. Because all the airlines are members, they can all elect to maintain basically the same rates thus fixing the price of their published airline tickets. IATA rules officially prohibit discounting, and in some countries these rules are actually enforced.

• There is Always a Loophole
  IATA rules state that the airlines cannot discount ticket prices BUT there is no rule outlining the amount of commissions an airline pays to authorized agents. The airlines then go to some of their top producing agents and give them huge rates of commission. As part of this deal, it is understood that the agent will rebate part of his commission and pass the savings along to the customer. This in turn, creates a discounted or “non-published” fare that is legally within the guidelines of IATA standards. It also explains why you will not find the lowest rates by going directly to the foreign airlines. In Europe and many foreign countries, buying airline tickets from these preferred agents known as “consolidators” or “bucket shops” has always been the preferred way. You can still find consolidators that advertise online, through travel agents or in the Sunday newspaper ads. There can be great savings but there are also great risks if you don't work with reputable companies. BE SURE to read all of their fine print carefully before using your credit cards.

• Scheduled Airlines
  Scheduled Airlines is an industry term for the major airline carriers. American Airlines, United, USair are all examples of Scheduled airlines. The major airlines publish a schedule of their flights between different cities. Remember the travel industry is all about supply and demand. The best way to find deals with the scheduled carriers is to try and fly at off times and at low season. For example, you won't be able to find any cheap flights during December holiday times when all the kids are off from school. Then again there are fantastic airline sales in September when most kids head back to school.

  
  

• Charter Flights
  Many larger tour companies, like Apple Vacations either own or charter their own airplanes to fly to popular vacation spots. For example, Apple vacations may offer flights between NYC and Cancun only on certain days of the week. It would be like hiring a bus for a school field trip. Normally the service on these charter flights is often better than that of the scheduled major airlines. Another advantage is that these flights are usually non-stop flights which adds to their convenience. Again off peak travel times are the best times to get great deals on charter flights.