Originally Posted by
pdog02
Actually it's a Revenue Mgmt experiment selecting certain connecting city pairs that have broken fares lower than non-stop fares to see if they can inhibit Sabre and other GDS pricing logic.
In essence, can AA extract a little more revenue premium by reducing non-stop fares. As an example:
DFW-LGA non stop walkup fare $790 each way.
DFWxBNA-LGA walkup fare $240 each way with the fare broken over BNA.
The premise being, can AA find the sweet spot between these 2 routings without diluting the overall revenue generation DFW-LGA regardless of the routing.
Are they targetting specific types of customers? For example, those who have a history of only booking deeply discounted tickets involving connections on routes where AA has nonstops?