Originally Posted by
hugolover
I thought Rev Mgt was something like right price, right product, right time and right person. All that is off right now. There are next to no last min corporate bookings, any pax travelling now are VFR wanting to get home etc.
Low prices don't attract discretionary bookings at this time. Who books today has an important reason for flying somewhere. Price is likely not a primary concern. You may well try to extract maximum revenue from the few people who make new bookings.
That's my theory. I guess you could put forward other explanations. Certainly, the cost structure for airlines is different at this point. Normal state of affairs: When a customer buys an eco light, he either uses or loses the ticket, except in rare circumstances like IRROPS. Today's state of affairs: A customer buys an eco light ticket and may change that ticket free of charge. Where's the fun in that?
I'd even offer a third theory related to the second which stresses that operational risks are through the roof at this point. Airlines can expect high costs from re-accomodating pax, from compensation under EC law etc.