Why Are Domestic Flights Often More Expensive Than Flying Abroad?

(SPOT.ph) In theory, local travel is supposed to be the budget option, yet the same question keeps coming up over the years: how is it often cheaper to fly to other Southeast Asian countries like Vietnam or Thailand than to another island in your own country?

Philippine Travel Agencies Association (PTAA) Vice President for Inbound Ellen Cobarubias, speaking to DZMM, acknowledged that the higher cost of domestic flights is a real issue the industry has to contend with—one that can’t simply be explained by fuel prices or peak season.

“Ang hirap sabihing hindi totoo ’yan pero may pagkakataon na totoo ’yan, lalo na sa peak season. Maraming factors kung bakit may impression na mas mahal tayo,” Cobarubias said.

One major reason is competition—or the lack of it. Compared to other Southeast Asian countries with dozens of carriers, Cobarubias said the Philippines has relatively few players on certain routes. Siargao is a good example of this. As of writing, only four airlines operate direct flights there: Philippine Airlines, Cebu Pacific, Cebgo, and Sunlight Air. Fewer seats and fewer airlines mean prices rise faster during periods of high demand.

Geography also plays a significant role. Cobarubias noted how the Philippines is an archipelago of more than 7,000 islands. That means flying—or at the very least, combining flights with boat transfers—is often unavoidable, unlike in other Asian countries where land travel can connect major cities.

It’s not just tourists dealing with that setup. Island destinations also face higher costs because almost everything—from food to construction materials—has to be shipped in from larger urban cities.

“Ang laki ng logistics, ng operation costs nila,” Cobarubias said, adding that these costs eventually show up in airfare, hotel rates, and tour prices.

It doesn’t help that Filipino tourists tend to flock to the same destinations at the same time, with Boracay, Cebu, and Siargao among the usual top picks, especially during long holidays.

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To help address costs, Cobarubias said PTAA is currently in talks with local government units to lower airport and terminal fees. Some hotels have also agreed to lower rates just to stay competitive.

For now, though, the most practical move you can do is to plan ahead. Booking early can make a noticeable difference, especially for popular routes. Cobarubias shared that a Manila-to-Cebu flight will cost her only P2,000 in October as opposed to P5,000 for a last-minute trip in February.

“Ngayon pa lang, mag-book ka na. Be smart about it.”

Cobrarubias suggested widening your travel radar as well. Places like Camiguin, Iloilo, Siquijor, and Ilocos offer the same postcard-worthy views without the price shock of peak season. At the end of the day, she said, local travel can still be worth it—if you plan it right.

“Ang dami nating emerging destinations dito... Kung titignan natin, sulit pa rin ’to,” Cobarubias said. “Nasa perspective lang kasi ’yan ng local travelers.”

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