FlyerTalk Forums - View Single Post - New upgrade award on Thai and devaluation
Old Jun 30, 2014 | 10:06 pm
  #86  
TheHansTheDampf
 
Join Date: Nov 2011
Posts: 52
Originally Posted by hgp
how well they have modelled the consumer behaviour as a result of this change.
They did not. TG is effectively a state owned enterprise and not really bound to be profitable (it would be nice but hey... )

Consumer behavior is definitely not in their decision making. I am very sure that these decisions have been driven purely on a 'math' basis - recalculating costs and hence making the ROP program more profitable - on the assumptions that consumers of course do not react to this.

It's almost like a kid with a lemonade booth selling 10 units a day at a dollar. Kid realizes it needs $20 instead of $10, so just charge $2 instead of $1 - problem solved :-)
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