FlyerTalk Forums - View Single Post - Empty Seats TATL in Business
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Old May 28, 2017, 6:43 am
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craigthemif
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Join Date: Aug 2011
Location: Barcelona, London, on a plane
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Originally Posted by Mountain Trader
This still seems a disappointing result for customers and IB Yield Management alike.
Not really. There were probably 2 people on that flight who booked using miles at T-330 days or so. Everybody else who wanted to fly in J paid the appropriate fare. Revenue management knows much more than you and I about how much to charge for Business Class. The aim is never to fill every seat, but to earn the most cash overall. And having empty seats only adds to the value of those paid seats, due to perceived rarity, comfort, better service, etc.

Giving away seats at the last minute simply builds expectations that the customer can get seats for free by waiting until the last minute. OK... today's give away to you might earn a bit extra in surcharge and use of Avios. Next month's flights will involve people not paying the $5K fare because they think they might get it for free. (or buying a cheaper Y fare and upgrading at the last minute) Overall a net loss for the airline.

Giving away seats also, over the longer term, means that people become less and less inclined to actually pay for the premium cabin. US domestic flights are a prime example. When nobody pays the premium price, then there is no incentive to invest in an attractive product. Everybody loses.

Do I wish that there were more award seats in Business Class? Or course. But that doesn't mean that IB is doing anything wrong by having half empty J cabins.
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