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    Components of Airline Fare Calculation

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    ara
    The document discusses the different components that make up an airline ticket price. It explains that the price is comprised of: 1) The airline's base fare, which is the pre-tax price and what discounts usually apply to. 2) Government taxes, fees, and charges imposed to raise funds. 3) Additional service fees charged by airlines, like baggage or fuel surcharges, that are included in the base fare or tax sections. Overall airline ticket prices can vary based on airline, availability, demand, and competition between carriers.

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    Components of Airline Fare Calculation

    Uploaded by

    ara
    378 views10 pages
    The document discusses the different components that make up an airline ticket price. It explains that the price is comprised of: 1) The airline's base fare, which is the pre-tax price and what discounts usually apply to. 2) Government taxes, fees, and charges imposed to raise funds. 3) Additional service fees charged by airlines, like baggage or fuel surcharges, that are included in the base fare or tax sections. Overall airline ticket prices can vary based on airline, availability, demand, and competition between carriers.

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    The document discusses the different components that make up an airline ticket price. It explains that the price is comprised of: 1) The airline's base fare, which is the pre-tax price and what discounts usually apply to. 2) Government taxes, fees, and charges imposed to raise funds. 3) Additional service fees charged by airlines, like baggage or fuel surcharges, that are included in the base fare or tax sections. Overall airline ticket prices can vary based on airline, availability, demand, and competition between carriers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    378 views10 pages

    Components of Airline Fare Calculation

    Uploaded by

    ara
    The document discusses the different components that make up an airline ticket price. It explains that the price is comprised of: 1) The airline's base fare, which is the pre-tax price and what discounts usually apply to. 2) Government taxes, fees, and charges imposed to raise funds. 3) Additional service fees charged by airlines, like baggage or fuel surcharges, that are included in the base fare or tax sections. Overall airline ticket prices can vary based on airline, availability, demand, and competition between carriers.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    The presentation outlines the different factors that determine an airline ticket price including base fares, government taxes and fees, and additional service charges imposed by airlines.

    The components that make up an airline ticket price are the airline's base fare, government taxes/fees, and additional service fees charged by the airline.

    Government implements taxes, fees, and charges on airline tickets to raise revenue for public services or specific aviation facilities/services. Examples provided include arrival/departure taxes, VAT, passenger taxes, passenger facility charges, and safety/security charges.

    Components of Airline Far

    e Calculation
    Presented by:
    Ara Mae Parinas (5906723)
    AIRFARES

     All airlines price each and every ticket to maximize


    profits. 
     One way to maximize profits is by gauging seasona
    l demand and this happens in all businesses.
    Different Components of the Air Fare

     The actual cost of an airline ticket comprise of these


    components:

     The airline carrier’s base fare


     Government taxes, fees and charges
     The carrier’s imposed service fees (optional)
    The Airline Carrier's Base Fares

    A base fare is the price of airline ticket before fees, t


    axes, and any surcharges are added.

    When a discount is announced, it is usually on the base fare


    . 
    Government Taxes, Fees and Charges (TF
    C)

    Government taxes are imposed for raising revenue for t


    he country's general treasury used for general public se
    rvices.
     Examples:
     Arrival or Departure Taxes
     Value Added Tax
     Transportation Tax
     Passenger Tax
     Etc.
    Government Taxes, Fees and Charges (TF
    C)

    Charges are imposed for raising revenue for specific avi


    ation related facilities or services.

     Examples:
     Passenger Facility Charge
     Safety and Security Charge
     International Aeronautical Dev
    elopment Charge 
     Etc.
    Government Taxes, Fees and Charges (TF
    C)

    Fees can be used instead of either taxes or charges dep


    ending on what the revenue is used for.

     Example/s:
     Passenger Service Fee
      User Development Fee (UDF)
    (per departing  passenger, a charge levied b
    y airport operator on passengers to recover
    the investment made on the development o
    f the airport)
     Etc.
    The Carrier’s Imposed Service Fees

    Some of these fees are not


    as obvious as they are incl  Example/s:
    uded in the base fare amo  Fuel Surcharge
    unts. They are usually writt  Insurance Surcharge
    en as a surcharge in the far  Security Surcharge
    e calculation box of the tic  Miscellaneous Surcharge
    ket while other Service Ch  baggage fees, meal fees, airlin
    arges appear in the tax bo e lounges, early bird check in,
    xes along with the Govern movies, seat selection and trav
    ment taxes.  el insurance etc.
    AIRFARES

     The cost of an airline ticket varies from airline to airl


    ine.
     Prices change due to seat availability and demand.
     Airline competition is also an important factor contr
    ibuting to the ticket price.
    End of Presentation
    Thank you for your attention.

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