When booking a flight feels like playing poker: The hidden costs of airline loyalty

You've been there before. You're comparing flights on your phone, find what looks like a reasonable price, and just as you're about to book, the cost mysteriously jumps by hundreds of dollars.

What started as a straightforward purchase suddenly feels like navigating a minefield, leaving you wondering if you've stumbled into some kind of pricing trick.

This exact scenario unfolded recently for Bailey Macklinshaw, a 28-year-old Sydney business development manager who discovered that logging into his Qantas Frequent Flyer account came with an unexpected penalty: a $324 price increase on the same flight he'd been viewing moments earlier.

The loyalty tax that punishes frequent flyers

What happened to Bailey reveals a troubling aspect of modern airline pricing. The airline's warnings about potential fare increases come amid reports of extraordinarily high pricing, including $1,000 one-way Sydney-Melbourne economy fares and $700 one-way Sydney to Coolangatta tickets.

Bailey's experience began innocently enough. He found return flights from Sydney to Melbourne listed at $618 on his phone. But when he followed the checkout process and logged into his Frequent Flyer account—as any loyal customer might do to earn points—the price suddenly jumped to $942.

'Part of the checkout process, it says, 'Do you want to log in?' Logged in, prices jump up. I thought that's so strange,' Bailey told Yahoo.

To test whether this was a genuine price change or something more sinister, Bailey checked the same flights on his partner's phone. The lower price was still there. When he logged back into his account on the same device, the higher price returned.

'I did the incognito and did a different browser, so went from Safari and Chrome to see if that changed it, grabbed my laptop and it was still the same,' he said.

A frequent flyer trapped by frequent flying

For Bailey, who travels regularly for work as a gold Qantas member, this wasn't an isolated incident. 'It's not the first instance either,' he said. 'I fly regularly... this is my 58th flight with them this year. One [flight] a week at this point, if not two a week. It's not ideal.'

The irony wasn't lost on him. As one of Qantas' most loyal customers, flying up to twice a week, Bailey was essentially being punished for his frequent flyer status. The more loyal he was to the airline, the more they seemed willing to charge him.

When Bailey contacted Qantas customer service for answers, his call was disconnected midway through the conversation. Concerned the price might rise even further, he reluctantly booked the more expensive fare—exactly what the airline was likely hoping would happen.

Adding insult to injury, Bailey's flight to Melbourne was cancelled just hours before departure. He was rebooked on a later service that was listed at a cheaper price than what he had originally paid.

The broader pattern behind the price games

Bailey's frustrating experience sits within a much larger story about Qantas and airline pricing practices. Qantas Airways Ltd. exploits its dominance of the Australian air-travel market to charge passengers excessively high fares, according to an inquiry into unfair pricing by the country's former antitrust chief.

Qantas' 65 per cent market share commitment has led to fierce pricing competition and the occurrence of price wars.

Indeed, Qantas' 65 per cent market share commitment has led to fierce pricing competition and the occurrence of price wars. This market dominance gives the airline significant pricing power, particularly on popular routes like Sydney to Melbourne.

The airline has been implementing various pricing changes throughout 2024 and 2025. The most significant change is a rise in the cost of most award flights by up to 20 per cent. For example, the lowest-tier awards will increase from 8,000 to 9,200 Qantas Points—a 15 per cent jump.

How airlines track and target you

Modern airline pricing systems are incredibly sophisticated. They track everything from your search history and booking patterns to your device type and geographic location. When you log into a frequent flyer account, you're essentially handing over a detailed profile of your travel habits.

Airlines know that frequent flyers, particularly business travelers like Bailey, often have less flexibility around travel dates and are therefore less price-sensitive. They may be willing to pay premium prices to maintain their status or earn points, especially when traveling for work.

Your toolkit for fighting back

While you can't completely avoid dynamic pricing, there are strategies to minimise its impact:

Search smart

• Always start your flight search in incognito or private browsing mode
  
• Clear your browser cookies before searching for flights
  
• Try searching from different devices or networks
  
• Don't log into frequent flyer accounts until you're ready to book

Compare across platforms

• Check prices on the airline's website, third-party booking sites, and travel agents
  
• Use fare comparison websites, but always verify final prices on the airline's direct site
  
• Consider calling the airline directly, especially for complex bookings

Timing strategies

• Tuesday and Wednesday searches often yield lower prices
  
• Avoid searching on weekends when demand patterns differ
  
• Book domestic flights 2-8 weeks in advance for best prices
  
• Set up price alerts rather than checking obsessively

When airlines cross the line

Bailey's experience raises questions about whether airlines are crossing the line from dynamic pricing into deceptive practices. In Australia, the Australian Consumer Law prohibits misleading or deceptive conduct in trade or commerce.

If you believe you've been subjected to unfair pricing practices, you have several options:

Document everything

• Take screenshots of prices at different stages
  
• Record the time and date of price changes
  
• Note which device or browser you were using
  
• Save any communication with customer service

Make complaints count

• Contact the airline's customer service first
  
• If unsatisfied, lodge a complaint with the Australian Competition and Consumer Commission (ACCC)
  
• Consider sharing your experience on social media—airlines often respond quickly to public complaints

Know your rights

The ACCC has been increasingly focused on airline pricing practices. The national carrier has cautioned Australian government officials that implementing an automatic compensation system for airline passengers would lead to increased ticket prices for travellers.

The community speaks out

Bailey's story resonated with many other travelers who shared similar experiences. 'All airlines do this!' one woman wrote in response to his story. 'They've done it to me too, so many issues,' another added.

A third comment captured the frustration many feel: 'It's all a hassle; if you're wealthy, no problem—book it, takes five minutes. If you're trying to get the best price, it can take hours of your time.'

This isn't just about one airline or one customer. It's become a widespread experience that many Australian travelers face, particularly older travelers who may be less familiar with the digital tricks airlines employ.

Looking ahead: What needs to change

The aviation industry's move toward increasingly sophisticated pricing algorithms puts consumers at a significant disadvantage. While airlines argue that dynamic pricing allows them to offer more competitive base fares, the reality for consumers like Bailey suggests the system is often tilted heavily in favour of the airlines.

Consumer advocates argue for greater transparency in airline pricing, while airlines maintain they need pricing flexibility to remain competitive. The challenge for regulators is finding the right balance between allowing legitimate business practices and protecting consumers from potentially deceptive behavior.

Your turn to share

Have you experienced sudden price jumps when booking flights? Have you noticed different prices when logged into your frequent flyer account versus searching anonymously? We'd love to hear your experiences and any tips you've discovered for getting fair prices when booking flights. Share your story in the comments below—your experience might help fellow travelers avoid similar pricing traps.