Hidden City Ticketing
Key Takeaways
Hidden city ticketing is a fare strategy where travelers book a connecting flight beyond their intended destination and deplane at the layover city to pay less. Navan helps corporate travel managers enforce booking policies that prevent unauthorized fare workarounds while still surfacing the lowest compliant fares across 600+ airlines.
- Hidden city fares can cost 40-60% less than nonstop flights to airline hub cities where a single carrier dominates, such as Charlotte (American) or Atlanta (Delta).
- All major U.S. and European carriers prohibit the practice in their contracts of carriage, and airlines have sued passengers and booking platforms over it.
- Checked baggage routes to the ticketed final destination, not the layover city, making the strategy impractical for travelers with more than a carry-on.
- 80% of business travelers book off-platform at least sometimes (Skift/Navan, 2026), increasing the risk that employees use fare hacks that violate airline terms.
What Is Hidden City Ticketing?
For example, a nonstop flight from Gainesville to Charlotte on American Airlines might cost $255, while a connecting flight from Gainesville to New York through Charlotte on the exact same first leg costs $122 (One Mile at a Time, 2025). The traveler books the cheaper ticket and walks out of the Charlotte airport.
The pricing disparity exists because airlines charge premium fares on routes where they face little competition. When your destination is a hub dominated by one carrier, the nonstop fare reflects that near-monopoly. Adding a connecting leg to a more competitive market forces the airline to match rivals, lowering the total fare.
Why Do Airlines Price Flights This Way?
Airlines set fares based on supply, demand, and route competition rather than distance flown. A seat on a 90-minute flight to an airline's hub can cost three times as much as a seat on a 5-hour connecting itinerary through that same hub.
This "fortress hub" pricing is most pronounced at airports where one carrier controls 50% or more of traffic. Notable examples include Charlotte (American, approximately 90% market share), Atlanta (Delta, approximately 73%), Minneapolis (Delta, approximately 70%), and Dallas-Fort Worth (American, approximately 85%). Business travelers flying into these cities nonstop from smaller markets frequently face inflated fares because few alternatives exist.
Airlines also use fare classes and inventory buckets to segment travelers by willingness to pay. Business travelers tend to book closer to departure and accept higher prices for nonstop convenience. Leisure travelers book earlier and tolerate connections. The practice of skiplagging disrupts this segmentation by letting passengers access lower fare classes intended for longer itineraries.
Risks and Penalties of Hidden City Ticketing
The practice isn't illegal, but it violates the contract of carriage you agree to when purchasing a ticket. Airlines enforce that contract in several ways:
Navan eliminates the need for fare workarounds by searching across 600+ airlines and applying negotiated corporate rates. With a 5-minute average booking time, finding a compliant low fare takes less effort than researching hidden city opportunities.
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For individual leisure travelers willing to accept the trade-offs, skiplagging can produce genuine savings on specific routes. For corporate travelers, the calculus changes.
Corporate travel policies at most companies require booking through approved channels, associating flights with loyalty programs, and checking bags when trips exceed a few days. The practice conflicts with all three requirements. If something goes wrong mid-trip (weather disruptions, cancellations, rebookings), the traveler has no legitimate itinerary to fall back on, and the company's duty-of-care obligations become harder to fulfill.
When Should You Consider Alternatives to Hidden City Ticketing?
Before booking a hidden city fare, consider legitimate strategies that achieve similar savings:
Hidden City Ticketing and Corporate Travel Policy
Travel managers writing or updating a travel and expense policy should address fare manipulation tactics explicitly. A clear policy statement that prohibits hidden city ticketing protects the company from airline enforcement actions (carriers have terminated corporate contracts over systematic abuse) and reduces duty-of-care gaps when travelers aren't where their itinerary indicates.
90% of organizations say business travel is an essential investment (Skift/Navan, 2026). Protecting that investment means booking through compliant channels where every trip is trackable, insurable, and modifiable. Navan enforces booking policy at the point of sale, meaning travelers see only compliant fare options while still getting the lowest available price.
Related Terms
- Duty of Care: a company's legal responsibility to protect employee safety during business travel, which the practice of skiplagging complicates because the traveler's actual location won't match the booked itinerary
- Expense Management: the systems and processes companies use to track, approve, and reimburse business spending, including airfare purchased through compliant or non-compliant booking methods
- Duty Free: a retail tax exemption for international travelers, relevant when hidden city routes involve layover cities in foreign countries where customs and immigration rules apply
Sources
- One Mile at a Time, "What Is Hidden City Ticketing For Flights, And Why Should Travelers Care?" 2025.
- Going.com, "Hidden City Ticketing: Everything You Need to Know," 2026.
- CNN Travel, "Hidden City Ticketing: The Travel Hack Airlines Don't Want You to Use," 2019.
- Skift and Navan, "State of Corporate Travel and Expense," 2026.
- Price of Travel, "Hidden City Ticketing: Explanation, Examples, and Strategies," 2025.
Travel managers looking to eliminate fare workarounds and find the lowest compliant airfare can explore how Navan's business travel platform enforces policy at the point of booking while surfacing competitive fares across 600+ airlines.
Frequently Asked Questions About Hidden City Ticketing