Demand versus pricing
06-09-2008 | 05:52 PM
#1
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Gets Weekends Off
Joined: Apr 2008
Posts: 768
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From: Bus
Demand versus pricing
http://www.msnbc.msn.com/id/25060931/
Airline industry's fare hike fails
Major carriers wanted to raise roundtrips by $20
NEW YORK - A number of major airlines rolled back a weekend fare increase Monday, the first time in more than half a dozen attempts that a widespread price hike failed to take hold across the struggling industry.
Carriers declined to say whether the shift signaled concerns about falling customer demand. Still, the decision served as a reminder that passengers — many reeling from financial worries of their own — may be nearing a tipping point in terms of how much they will pay to fly.
"This could be the first sign that demand is softening," said Graeme Wallace, chief technology officer of airfare research site FareCompare.com. "Up until now, the (airlines') statements have been that they expect demand to stay high."
Airline industry's fare hike fails
Major carriers wanted to raise roundtrips by $20
NEW YORK - A number of major airlines rolled back a weekend fare increase Monday, the first time in more than half a dozen attempts that a widespread price hike failed to take hold across the struggling industry.
Carriers declined to say whether the shift signaled concerns about falling customer demand. Still, the decision served as a reminder that passengers — many reeling from financial worries of their own — may be nearing a tipping point in terms of how much they will pay to fly.
"This could be the first sign that demand is softening," said Graeme Wallace, chief technology officer of airfare research site FareCompare.com. "Up until now, the (airlines') statements have been that they expect demand to stay high."
Last edited by 130drvr; 06-09-2008 at 06:36 PM. Reason: the pretty police don't like cut and paste
06-09-2008 | 06:13 PM
#2
Gets Weekends Off
Joined: Dec 2007
Posts: 117
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From: Coach
awwww, come on - you don't believe lee moak? apparently the rollback of the price-hike is hogwash. apparently it's all a matter of "will": don't furlough anybody, no concessions, and just raise prices.
i'm not sure why he's not an exec instead of a union guy... ...oh wait, the airlines (and, by corrollary, pilot jobs/salaries) are subject to the laws of supply and demand.
demand for oil is indeed elastic - maybe not as elastic as the demand for fine wine, but the airlines are confirming what they already knew: there's a lot of people who will significantly curtail their travel if prices continue to climb.
i'm not sure why he's not an exec instead of a union guy... ...oh wait, the airlines (and, by corrollary, pilot jobs/salaries) are subject to the laws of supply and demand.
demand for oil is indeed elastic - maybe not as elastic as the demand for fine wine, but the airlines are confirming what they already knew: there's a lot of people who will significantly curtail their travel if prices continue to climb.
06-09-2008 | 06:34 PM
#4
A moment please...
Joined: Sep 2007
Posts: 769
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From: Just passin' thru
Part of the middle class squeeze. Between inflation, more taxes, lower home values, debts, college, etc families that were once doing well aren't feeling the same way these days. Less disposable income or whatever they call it.
06-10-2008 | 06:32 AM
#7
Self Employed.
Joined: May 2005
Posts: 7,120
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From: Corporate Pilot
End of an era
The bus mentality in the airlines is coming to an end and the "lets ride an actual bus, or train instead" era is starting.
Might as well ride the Greyhound. By the time you add up all the time wasted with driving to the airport, TSA, canceled flights, delays, cost, and other hassles a bus makes more sense for trips of 300 miles or less. Maybe they could offer some express routes between big cities?
Skyhigh
Might as well ride the Greyhound. By the time you add up all the time wasted with driving to the airport, TSA, canceled flights, delays, cost, and other hassles a bus makes more sense for trips of 300 miles or less. Maybe they could offer some express routes between big cities?
Skyhigh
06-10-2008 | 03:03 PM
#8
Gets Weekends Off
Joined: Mar 2006
Posts: 712
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From: in front of a computer screen
[QUOTE Might as well ride the Greyhound. By the time you add up all the time wasted with driving to the airport, TSA, canceled flights, delays, cost, and other hassles a bus makes more sense for trips of 300 miles or less. Maybe they could offer some express routes between big cities?[/QUOTE]
code share with airlines, maybe?
code share with airlines, maybe?
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