FlyerTalk Forums - View Single Post - Why are domestic business fares so expensive?
Old Aug 2, 2019 | 3:07 pm
  #4  
ridefar
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Join Date: Apr 2011
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Originally Posted by RangerNS
AC Domestic (TB & Sun) Business is generally accepted as superior to the US carriers. So that accounts for about $20 in the difference.

The rest is competition, business, economic forces.

But mainly the punchline to the koan about the MBA professor after listening to a pricing exercise. "Your all wrong. Charge what the market can bear"
We have a winner. The domestic J market in Canada is small and relatively price insensitive. So they can charge it, so they do.

If I had to guess, I would guess that the domestic J cabin is, on average: 40% upgraders, 20-30% connecting to international J, and only 30% or so paying for an actual J, C, D, P, or Z fare.
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