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Economic Naturalist Question #16. Why are round-trip airfares from the mainland to Honolulu lower than round-trip airfares from Honolulu to the mainland? 
In an earlier thread, I explored why introductory economics courses appear to leave little lasting imprint on the millions of students who take them each year:
Students learn more effectively when they pose interesting questions based on personal experience, and then use basic economic principles to help answer them. This exercise became what I call my “economic naturalist” writing assignment.
My former student Karen Hittle began by noting that if you lived in Kansas City and wanted to fly to Honolulu and return a week later, the lowest fare you'd find was about one-third lower than if you started in Honolulu and booked the same round trip between the two cities.
Passengers on these two itineraries traveled on the same planes, consumed the same fuel, experienced the same headwinds and tailwinds, and enjoyed the same in-flight amenities (or lack thereof). Why, then, were their fares so different?
If you're starting in Kansas City and going to Honolulu, you're probably going on vacation. You could go to lots of different places— Barbados, or Cancun... Because vacationers have many destinations to choose from, airlines must compete fiercely for their business.
And given the cost savings inherent in larger aircraft, carriers have a strong incentive to fill additional seats by targeting lower prices to people who are more sensitive to price—vacationers.
But most people starting in Honolulu for a trip to Kansas City have business or family reasons for traveling. They're not shopping for a destination. Buyers with fewer alternatives tend to be less sensitive to price. And that's why travelers originating in Honolulu pay more.
