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In this series of posts, we explore great Virtual Interline (VI) fares and break down why these fares are amazing for both consumers and travel retailers.

Understanding Virtual Interlining

Before we jump into the analysis, it is worth having an understanding of Virtual Interlining (read about the basics here) and what makes these fares so attractive. The most important factors include:

  • Price: Who does not want cheaper fares!
  • Duration: Consumers typically choose a fare if it is faster compared to alternative fares.
  • Departure Time: Consumers will also select a flight based on their preferred departure time (morning, evening).
  • Airport Location: Consumers might have preferences for specific smaller airports frequently used by Low-Cost-Carriers (LCC).

Special VI Fare Analysis

Let’s look at a special VI fare from Toronto (YTO) to Freeport, Bahamas (FPO). Toronto to Freeport does not have any direct flights, making it a great candidate where Virtual Interlining competes with traditional fares offered by Full-Service-Carriers (FSC). Let's review the Cheapest, Shortest, and Best options.

Cheapest Options

The top two Cheapest options are both Virtual Interline (VI) combinations of Flair Airlines & BahamasAir:

  • $221 USD (Cheapest and Best option, duration 5h 50 mins)
  • $323 USD

Shortest Option

The Shortest option is a 1-stop American Airlines flight:

  • Price: $562 USD
  • Duration: 5h 30 mins

As you can see, both the Cheapest and Best fares are much more attractive to consumers than the traditional fare that is more than double the cost and only 20 mins faster.

Economics of VI Fares

Let's look at what makes these VI fares so attractive for Travel Retailers including Online Travel Agencies (OTA):

  • VI fares are often unique in the market and not offered by most travel agencies.
  • VI fares produce the Cheapest or Best results on 40%+ of all routes.
  • Virtual Interline flights dominate the first page of results in all categories (Cheapest, Shortest, and Best) pushing traditional fares further down the page.
  • There are multiple revenue sources for Virtual Interline:
    • Markup: A markup of 10-20% can be applied since the fare is attractive relative to traditional fares.
    • Commissions: Potential commission from airlines (if relationships exist with the carrier).
    • Other: Additional ancillary revenue since baggage and seat selection would be purchased separately for each leg of the trip.

If you would like to learn more about Virtual Interlining (VI) and how it can help your Travel Business, please contact sales - sales@tripstack.com.