FlyerTalk Forums - View Single Post - Why I'm Clearly Not Cut Out For Revenue Mgmt
Old Sep 23, 2014, 11:30 am
  #35  
cerealmarketer
 
Join Date: Feb 2002
Location: NYC: UA 1K, DL Platinum, AAirpass, Avis PC
Posts: 4,599
Originally Posted by Kacee
Per OP, it's JFK-SFO.

You have completely ignored the fact that many companies will not allow J purchases.

You are also wrong about Z costing more than Y on this route. Y is more expensive ($1676 vs. $1659).

So I repeat, J7 Z4 Y0 is money-losing inventory management. UA is likely to lose full Y fare purchases on this flight and instead wind up giving J seats away as upgrades or for $200-300 buy-ups.
Impossible to make that statement.

FYI - the transcons to New York are a whole different beast for corporates. They are dominated by the investment banks, consulting firms, law firms, and media companies who have 'we pay for J' on 5+ hour flights policies for most employees.

And they pay very different fares than what are published to the public. Walkup last seat J seat on AA, UA, or Delta is around $999 one way for the bigger guys who give them volume.

And last seat Y as you can imagine is close to that or a bit lower with their discounts.

It's all about those contracts, which ultimately push up fares for those who don't have them to absurd levels for such a stage length (i.e. $8,000 roundtrip in First on AA).
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