Originally Posted by
Leaping_Deere
I personally find airline pricing structure totally fascinating. Working in sales, I have usually always worked on cost plus agreed margins. So a model like this seems totally alien, particularly when a seat is a 'perishable' item as it were. However I totally understand an airlines reasoning.
It's fascinating, and there's a lot of psychology at play.
The current seat is perishable, but the one you'll buy next month isn't, nor the one after that. And if you let your high-tier FF members routinely get bargain upgrades to WT+/CW, then they stop routinely buying WT+/CW seats. You lose £200 on this empty seat, you gain £700 by persuading people to pay for the ticket they actually want next time.