FlyerTalk Forums - View Single Post - Are business travelers in Cleveland more price sensitive?
Old Apr 5, 2012, 8:49 pm
  #5  
JerryFF
 
Join Date: Mar 2000
Location: Santa Cruz, CA USA
Programs: AA, UA, WN, HH, Marriott
Posts: 7,290
This kind of analysis has been done 100 times or more. The airlines know exactly what parameters they need in order to make a hub successful. They know what % of O and D traffic they need and they know what the critical mass of flights they need.

It is extremely unlikely that, after analyzing this situation in dozens of cities across the country, north and south, east, midwest, and west, that Cleveland would somehow be unique. The river is no longer on fire in Cleveland, so that can't be cited.

When United says they are evaluating the profitability of Cleveland as a hub, they are simply going to put the actual figures of traffic into their formulas that have been tested over and over again. Why would you think that of all of the cities that have served as hubs, including nearby Detroit and Cincinnati, that Cleveland would be different? What reason(s) do you have for thinking that Cleveland business travelers would be any more or less fare-sensitive than travelers in Detroit or Cincinnati or St Louis or Memphis or Chicago?

Before committing oneself to a research project, one needs to offer a rationale for doing the project. I would be interested in yours. As I said above, what reasons do have for thinking Cleveland is any different from any of these other cities - what is so unique about Cleveland that the airline needs a new model to decide on whether a Cleveland hub is profitable?

If you were presenting this project to a funding agency for support, this is exactly what they would be asking. Before you ask people to spend time on this, it would be helpful if you could provide a basis and rationale for the project.

Rant over. Thank you.
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