FlyerTalk Forums - View Single Post - UA sues "hidden city" search site Skiplagged.com
Old Dec 30, 2014, 9:14 am
  #105  
flyingmusicianlax
 
Join Date: Dec 2008
Location: WAS, LAX
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Posts: 1,330
Originally Posted by Bear96
OK let's think for a minute about what will happen if the pro-hidden-city-ticketing side prevails.

Right now there is sufficient customer demand for an airline to charge $x for AAA - HUB. But it can only charge, say, 0.5x for AAA - smaller city BBB via HUB (or in other words, AAA - HUB - BBB).

What do you think is more likely if they can no longer charge that difference:

(A) The airline will drop the AAA-HUB fare to 0.5x to match the AAA-HUB-BBB fare; or

(B) The airline will stop service to BBB (with associated cost savings, which are often significantly higher on short legs on a passenger-mile basis) so it can still charge x on the much-higher-margin AAA-HUB fare?

My money would be on (B). So I would expect to see the BBBs of the world have service either reduced or eliminated, or maybe have higher fares to match AAA-HUB fares on those relatively few BBB markets where there is sufficient demand.

Congratulations! You won!
The two choices you present really do not take into account the complexities of revenue and inventory management (which I would wager few, if any, on FT fully understand). More likely, the airlines' solution will be much more nuanced than just going all out and dropping a city.
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