Hi Caroline, Sylvia, Sue & everyone else interested in this post,
First of all please accept my apologies for the delay in coming back to you all.
I wanted to make sure I had the right information and therefore spoke with quite few members of our Aviation Team, including their General Manager.
Our holidays involve a mixture of flights that we have either contracted in advance on special group rates or purchased at the time of the customer’s booking. This all depends on the destination, availability and the airlines involved. Therefore on some tours the flights do offer the flexibility of an individual booking reference, which can then be upgraded directly.
The cost of a flight upgrade from the airline can change considerably from day to day and is driven by general demand for the route and the amount of seats that an airline will release to Tour Operators which can be restricted. The rates we obtain depend on the date of request and seat availability at that point in time and will be different to what the customer may see direct with the airline. This is the same for standard seats which is why we generally prefer to contract the flight well in advance of the tour so we can secure seats and get as many of the group on the same flight as possible. Having the same arrangements for all of the group helps to protect the seats at very busy departure times and to make all the other logistics fit together as smoothly as possible.
With regards to the mark up on flight upgrades, yes as a company we do have a small percentage but, as Julia already explained, the main reason for the price difference is that we purchase our allocation of flights a long time before departure to ensure that we get the best prices available. The price shown on the Virgin website is the cost of the upgrade on top of a standard economy fare on a particular day. When we quote an upgrade fare, we have to base the price differential on the price from which we have secured the seats at (which is lower than a standard fare) and the price of upgrade on the day it is requested. When a customer requests an upgrade price, this is done using the live information and can fluctuate both up and down subject to availability and any offers that the airline may be running that we can take.
Hope this is clear and answers all your questions.
If not please do let me know and I'll be happy to help.
Kind regards,
Elisa