A new twist to the merger talk going around.
#21
Gets Weekends Off
Joined APC: Sep 2005
Position: Any, usually behind the wing
Posts: 382
I'd like to see a study on this but I'm willing to bet that if the average fare was doubled, the result would be revenue positive. I know the loads would drop but I think they would drop by less than half. The problem is somebody (like the LLCs) would not play along.
That's competition I guess.
That's competition I guess.
If prices were doubled it would reduce a lot of my stress- I'd drive more and farther both. I wouldn't have to think about it at all.
My business is not in business to keep anybody else's business profitable or "revenue" positive. As I've said before- the value is in the transaction- What is that seat worth to me on Thursday the 17th? On the 15th or the
23rd? Nothing. But on the 17th-$320. Not $380. More than $180. If the market can take $380, charge, I'll go without. If you charge $180, you've left money on the table. Ah, yield management. If you can make the money you need selling high and flying half-full- well that business model works.
But I promise if you price it right, even I'll play along.
In any case- have good holidays and safe trips.
But wait, then everybody starts charging the same price. Now customer choice is based on service....that's another thread (been done before too).
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