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Old Apr 8, 2013 | 6:17 am
  #14  
Bicostal
 
Join Date: Jan 2010
Programs: AA Plat 2MM/UA G MM/DL MM DM 2015/BA Silver/Hyatt Diamond
Posts: 3,103
Originally Posted by TheMadBrewer
Exactly. I don't check for the lowest price, I try to find the lowest price on Delta. Most of my travel is pretty much discretionary -- if I don't find a price I can live with on Delta then I most likely don't go or I change the trip parameters so the price is one I can live with.

If I weren't totally assimilated by the collective, I would pick the cheapest price within some travel time, connection, comfort parameters and the chances are that it would be on a bunch of other airlines. So SkyMiles drives business to Delta (in my case). No SkyMiles (or gutted SkyMiles) and I fly the cheapest.
Which is not the definition of price discrimination. What FF programs do is provide additional value to the traveler that justifies, in the mind of the traveler, the additional payment. You get more, you pay more. If the reality fails to meet the perception ( through devaluation) then fliers will be less willing to pay more.

The airlines use their FF programs as part of their product differentiation strategy. Convenience, onboard amenities, etc., are also part of this, of course.

Price discrimination is used by the revenue management guys and the $150 fee to change your ticket.
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