FlyerTalk Forums - View Single Post - LHs strategy: discussion thread for customers, investors, consultants & armchair CEOs
Old Aug 15, 2014, 3:05 am
  #1515  
IAN-UK
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Originally Posted by gojko88
With the current Y+ prices (easily 2-3 times the cheapest available Y), I don't see too many Y flyers up-tiering to Y+.
But that's not how it's expected to work in terms of upgrading cabin-class.

Lowest fare "commodity" travellers will stay where they are: high-Y fares are the ones likely to find Y+ tickets more attractive (one attraction being the cabin is NOT Business, and therefore within corporate travel policies).

If "rare bird" high-Ys move up, they'll free up more Y seats for those from the infinite masses seeking travel at lower fares.

So increased revenue from moves upwards will be somewhat offset by less revenue for the Y seats vacated in that move.

The opposite signs are attached to migration down to Y+ from C. And here vacated C seats don't have infinite numbers waiting to fill those vacated.

It's not as simple as it looks .

Lufthansa's revenue and research teams could probably populate that simplified outline with sensible numbers. We can't. So only time will tell....
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