Originally Posted by
hockeypilot44
What a dumb way to run a business. If a concert doesn't sell out, do they lower the price? The answer is no. By lowering the price, you degrade the value of the seats. People that have to go to Paris are no longer willing to pay $1000 for the seat while the person next to them pays $300. They should charge a set fee for all seats on a given flight.
I'd recommend you read a book called "Hard Landing." It gives an excellent history of the development of computer reservation and pricing models and how the airlines that developed them (like American) used them to put airlines that didn't have them (like people's express) out of business.
Lots of other good info about deregulation and it's aftermath. Sounds like a dry subject, but it's actually a pretty good read.