FlyerTalk Forums - View Single Post - First Class Monetization, or FCM: The Definitive Thread
Old Mar 16, 2012 | 3:03 pm
  #565  
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Originally Posted by sbjnyc
Is that really the case? If DL can sell 1 paid F fare at the expense of 5 elites on T fares (like me) they are probably better off on a net basis even if the other 4 seats go unsold. On the other hand I don't think DL can afford to chase away its higher fare elites.
Your numbers don't work out.

In aggressively FCM'd markets, a P fare may only be 2x to 3x what you paid for your heavily discounted fare, and only $50 or so above the last minute, somewhat discounted coach fare.

The P fare can be discounted off of a full F fare by as much as 60 to 70%.

So to get that extra $50, DL management is undercutting the value perception of FC... saying it's only worth 30 to 40% of what they claim it is worth.

They are creating a situation where the only folks who would ever buy a full F fare are the totally clueless, and those who try to compensate for something else by coming here to FT to brag about how they "always buy F."
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