FlyerTalk Forums - View Single Post - Buying FC and immediately SDC to cheaper...
Old Jun 17, 2019, 8:29 pm
  #43  
MSPeconomist
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Originally Posted by ijgordon
Eh, I think DL's real goal is to maximize revenues. Notwithstanding the meaningless statistic of what % of first class seats were sold as first class tickets. If that's not their goal, then short the stock.
There is certainly a case to be made that SDC into any available FC inventory can leave money on the table and is a potential leak in revenue management. I guess the question, as others have alluded to is whether that leakage is enough to offset the selling point benefit of the SDC policy, which frankly, they don't really market particularly well (let alone train their agents on it!)
I hope their goal is to maximize profits or (better yet) stock market valuation. High revenues can be associated with negative profits.

The good news is that DL never accepted my offer of consulting services to show them how to sell virtually 100% of the FC cabin on every flight. The method would have shown how silly this is as a goal.
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