View Full Version : CASH COW! PHL-FCO


BizJet
May 7, 01, 4:47 pm
This confirms the notion that PHL-FCO route generates the most revenue for US Airways.

I checked random dates for US2/US3 from next week through the end of May. After next week (most flights showing F3 J7), the premium cabin inventories were practically depleted entirely. Lots of F0's, couple F1's. Several J1's and J2's, a few J0's. WOW. Sold out in all premium cabins, plus cargo, plus a well-filled coach cabin, means enormous revenue for US.

deelmakur
May 7, 01, 5:38 pm
Check the "flights.com" site. This consolidator has been steadily selling Envoy on this route at between $2100 and $2900 (round trip), depending on what city you start from. In addition, Delta has collapsed Business Class fares to Europe, and people are matching them. Evidently, the only thing worse than selling your inventory at discount is letting your good customers have it for nothing. Actually, it kind of makes sense, but so much for the promote from DM.

BizJet
May 7, 01, 6:09 pm
...so maybe these aren't quite the cash cows I first thought.

I agree with your sentiments about discounting premium cabins vs. upgrading loyal customers to fill empty premium seats. The former is the short-sighted fix. If you can't fill it at $6,000, then sell it at $2,000-$3,000, as you are getting more money than upgrading a $1,000 loyal coach flyer. Unfortunately the person getting these cheap fares in biz class will not feel appreciated and want to go out of their way to fly the airline. If you upgrade loyal members from coach, sure, you may not quite get as much cash as you could for that one flight, but you get an extremely thankful customer who will come back again and again. A long-term customer. Oh well.

deelmakur
May 7, 01, 11:16 pm
Besides consolidators, don't forget they are also in the Amex Platinum 2 for 1. Then there are promotional fares in conjunction with cruise lines, which have premium class supplements, and of course, with the fall off in corporate travel, upgrading becomes a valuable promotional tool. Any way you slice it, there are revenue based uses for this inventory which moves the frequent flyer down the food chain. Even so, it's unlikely that what's in those seats has paid anything near list price.

[This message has been edited by deelmakur (edited 05-07-2001).]