Saturday-night stay

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Saturday-night stay is a rule used by airlines to separate business and leisure travelers.

For travelers to qualify for a low round-trip airfare, some legacy carriers require them to spend Saturday night at their destination. The rule is based on the airlines' assumption that business travelers are more likely than leisure travelers to spend Saturday night at home. For example, a business traveler may depart on a Sunday or Monday and then return home that Friday or Saturday.

A legacy carrier, in the United States, is an airline that had established interstate routes before the beginning of the route liberalization which was permitted by the Airline Deregulation Act of 1978, and was thus directly affected by that act. It is distinct from a low-cost carrier, which in the United States are generally new airlines that were started to compete in the newly deregulated industry.

Business travel

Business travel is travel undertaken for work or business purposes, as opposed to other types of travel, such as for leisure purposes or regularly commuting between one's home and workplace.

Business travelers' demand for travel is less elastic and airlines attempt to increase their profits by price-discriminating business travelers and leisure travelers. Business travelers often do not pay for their tickets personally and may also more loyal to a particular airline, and therefore are more likely to accept a higher price.

Demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.

Price discrimination

Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets. Price discrimination is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy. Price differentiation essentially relies on the variation in the customers' willingness to pay and in the elasticity of their demand.

In early 2000s, the Saturday-night stay rule vanished due to competition from low-cost carriers, which commonly do not impose the rule [1] and often sell one-way fares only. However, the practice of pricing according to Saturday-night stay reappeared in 2008. [2]

Low-cost carrier airline that generally has lower fares and fewer comforts

A low-cost carrier or low-cost airline is an airline that is operated with an especially high emphasis on minimizing operating costs and without some of the traditional services and amenities provided in the fare, resulting in lower fares and fewer comforts. To make up for revenue lost in decreased ticket prices, the airline may charge extra fees – such as for carry-on baggage. As of July 2014, the world's largest low-cost carrier is Southwest Airlines, which operates in the United States and some surrounding areas.

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Airline Deregulation Act

The Airline Deregulation Act is a 1978 United States federal law that deregulated the airline industry in the United States, removing U.S. federal government control over such areas as fares, routes and market entry of new airlines, introducing a free market in the commercial airline industry and leading to a great increase in the number of flights, a decrease in fares, and an increase in the number of passengers and miles flown. The Civil Aeronautics Board's powers of regulation were phased out, but the Act did not diminish the regulatory powers of the Federal Aviation Administration (FAA) over all aspects of aviation safety.

Airline alliance cooperation agreement between two or more airlines

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Hostel Cheap, sociable accommodation

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A frequent-flyer program (FFP) is a loyalty program offered by an airline.

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A day-tripper is a person who visits a tourist destination or visitor attraction from his/her home or hotel/hostel in the morning and returns home or to his/her hotel/hostel the same evening.

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Round-the-world ticket

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Staycation

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References

  1. Gilden, James. The Saturday-night stay requirement is on its final approach. The Los Angeles Times. 2004-08-15.
  2. Reed, Ted. Airlines Bring Back Saturday-Night Stays. TheStreet.com . 2008-01-28.