AVIATN 3000 Chapter Notes - Chapter 6: Economy Class
30 Jun 2018
School
Department
Course
Professor
Fares vary based on first-business and other complex
levels down to promotional fares
1)
Fares vary the conditions attached to them, refundable,
flexible schedule etc
2)
Load factors of 40-50%, generally no overbooking
a)
Pays for own seat and others unfilled
b)
First Class
3)
Fares vary over time, peak vs non-peak
4)
Prices are too high and some of the fare in the ticket is
used to subsidize the cheap tickets that generate loss
a)
Many restrictions on cheaper fares so passengers who
are willing to pay more won't buy these "Anti
Marketing"
b)
Pricing Policies unpopular generally b/c
5)
The Principles
A)
All parties with different willingness to pay are satisfied,
price they can afford
1)
Use a uniform approach to fares in economy class
a)
People currently paying high price would pass a lot
less, but may get a worse product
b)
However, not as promising for passengers paying
lower fare seeing cost rise
c)
Critics
2)
Not ideal because not all econ passengers have same
needs
3)
Differential Pricing: Arguments in Favor
B)
Uniform and Differential Pricing
I)
Reading Chapter 6: Uniform and Differential Pricing
Tuesday, February 13, 2018
7:35 PM
Midterm Page 1
Document Summary
Fares vary based on first-business and other complex levels down to promotional fares. Fares vary the conditions attached to them, refundable, flexible schedule etc. Prices are too high and some of the fare in the ticket is used to subsidize the cheap tickets that generate loss. Many restrictions on cheaper fares so passengers who are willing to pay more won"t buy these "anti. All parties with different willingness to pay are satisfied, price they can afford. Use a uniform approach to fares in economy class. People currently paying high price would pass a lot less, but may get a worse product. However, not as promising for passengers paying lower fare seeing cost rise c) Not ideal because not all econ passengers have same needs. Bigger needs are cheap fare rather than flexibility. Benefits of two classes leisure and business a) Must broader route network with better flight frequency. Satisfy all parties, maintain frequencies while using large aircraft.
