Hidden City Ticketing: A Response to Rising Airfares and the Dollar Dilemma in Iraq
The cost of air travel has seen a significant surge in recent years, leading to a rise in an exploitative practice known as “hidden city ticketing.” This method involves savvy travelers purchasing a ticket to a less popular final destination with a stopover at their actual desired destination, disembarking at the transit stop, and forfeiting the remainder of their journey. A cost-saving technique that leverages the fact that airlines often charge less for indirect flights.
Hidden City Ticketing: Frugality or Fraud?
As Kathleen Bangs, a former civil aviator, illustrated with an example: a direct flight from Minneapolis to Miami might cost $500, but a flight from Minneapolis to Jacksonville with a transit stop in Miami might only cost $350. The passenger can save $150 by simply not continuing the journey to Jacksonville. While such a practice is not illegal, it is frowned upon by airlines as it violates their ticket terms and conditions.
According to travel expert Scott Keyes, such practices not only deprive airlines of potential revenue from direct flights but also lead to operational issues like delays and lost sales from seats that could have been sold to other passengers. American Airlines has emphasized that such practices are strictly prohibited under their carriage terms and agency agreements.
Dollar Dilemma in Iraq
On the other side of the globe, in Southern Iraq, new regulations aimed at controlling the black market exchange rate have made it difficult for citizens like oil sector employee Harith Hassan to withdraw their full salaries in dollars from the bank. Despite having vast dollar reserves exceeding $100 billion, Iraq has imposed these measures to curb the burgeoning parallel exchange market and comply with international rules set by Washington.
The official exchange rate is 1,320 dinars to the dollar, while in the black market, it can go up to 1,600 dinars. The Central Bank of Iraq has decided to conduct all commercial transactions in Iraqi dinars instead of dollars from January onwards, creating a substantial reduction in the available foreign currency in the market. These measures have had a significant impact on various sectors, especially those dealing with Iran and Syria, which are under sanctions.
Travel Hacks and Future Projections
Simultaneously, some families have managed to drastically cut down their travel costs by maximizing credit card sign-up bonuses, accumulating transferable credit card points, and utilizing travel perks offered by airlines. However, this strategic long game requires time and effort to master. According to a study by Kayak, domestic airfare, car rentals, and hotel bookings are expected to decrease in 2024 compared to 2023. The International Air Transport Association (IATA) has projected a net profit margin increase to 2.7% for 2024, despite the challenges of high borrowing costs and limited capacity.
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