Travel agents: Fare wars ‘overstated’

Bob Shemeligian

Tuesday, Feb. 18, 1997 | 11:59 a.m.

Reports of air fare wars are greatly exaggerated, say local travel agents who report business as usual this week.

The agents explained that prices have been dropped on overseas fares, but ticket prices have not been greatly reduced on domestic flights, which represent more than 70 percent of the travel business.

"I got up this morning and I heard about these fare wars on the news," said Ellie Adams, president of Greystone Travel. "I immediately called my staff (to prepare them), but it hasn't been any more busy than normal."

It was the same story Monday at all 22 local branches of Prestige Travel.

"We've had some calls, but it's not as bad as it could be," said Bonnie Yardley, manager of the corporate manager of Prestige. "I think the national media has blown this story out of perspective."

The national story is as follows:

* Embattled American Airlines initiates a fare sale in order to lure back disgruntled travelers with prices cut up to 50 percent, which sparks an industry-wide fare war.

* American starts the sale on Saturday minutes after President Clinton halts a strike by its pilots and implements a 60-day review.

* As part of the sale, American removes advance purchase conditions, doubles frequent flier miles on flights through mid-March and offers free upgrades to frequent fliers through Feb. 23.

* Other major airlines match American's fares on competing routes.

If all this sounds a little too good to be true to travelers in search of bargains, it's because it is too good to be true, according to local travel agents.

"Some people are calling about the lower air fares that American has offered, but what American has done is what department stores do around Christmas time," said Christine Smith, travel consultant with Discount Travel.

Smith and other travel agents explained that American is offering 50 percent off domestic one-way full coach fares, which are much more expensive than restricted fares.

And so, the discounted fares American is offering for domestic travel are not much different from fares available to smart air-fare shoppers throughout the year.

"Take a one-way ticket from Las Vegas to New York City, for example," Yardley said. "It could be as high as $500, so even if they discount the fare, it's higher than most people realize."

For instance: American is offering a special round-trip coach fare from New York City to Las Vegas for $318, a price that does not represent a big savings over restricted fares.

But, American has significantly reduced prices on international travel, which has prompted other airlines to follow suit.

This is good news to overseas business or vacation travelers.

"American, United and Northwest are offering fares of only $700 for a round-trip ticket to Singapore, which is very cheap," said Yardley. "Delta has a special fare to Taiwan for $785," so this is the right time to fly overseas.

Airlines also have reduced fares to most major large cities and tourist destinations in Europe.

"To be honest, I'm seeing reduced fares to London out of Las Vegas, but the basic fares from Las Vegas to New York City are $18 higher than they were on Friday," Yardley said.

Because the vast number of airline flights are domestic, the savings do not apply to most travelers.

"This little fare war is not designed for the general public," Adams said. "The better deals are for the more exotic destinations."

But, travel agents note, the improved frequent flyer perks do provide an additional incentive to fly American both in and out of the U.S.

The double frequent-flyer miles offered on all flights through March 14 really add up, said Yardley, who explained that American Airlines Advantage members can reap 9,000 frequent flyer miles on a round-trip package from Las Vegas to Boston.

"You get a free ticket after 25,000 miles, so you can see it's really a good deal," Yardley said.

But Smith warns travelers who choose American to keep in mind that when President Clinton intervened in the airline strike on Saturday, he gave both sides 60 days to reach an agreement.

If an agreement is not reached by then, the strike could resume, which would affect American flights scheduled after April 15.

"Keep in mind that if you book your flight after the 60-day time period, you're gambling with the flight," Smith said.