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Thread: Enough already
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Old Sep 19, 2003, 2:07 pm
  #2  
ziggy29
 
Join Date: Jan 2002
Location: North Oregon Coast
Programs: AS, AA, BA, HH Gold, Marriott Gold, National EE
Posts: 354
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by craz:
But I dont blame CO, they got to do what they have to in order to stay in business.</font>
See, that's just it -- a lot of folks don't think this *will* help them stay in business; it will just accelerate into a death spiral if unchecked. And a lot of folks have much more at stake with CO with their status and accumulated miles than I do.

This whole thing can only raise more revenue for CO if you believe that these changes will encourage a significant number of travelers to pay over $1,000 for full-Y fare instead of (say) $300 for a discounted fare.

I don't know business travelers whose company will allow that. I don't know leisure travelers on anything remotely resembling a budget doing that. I don't see wealthy travelers doing that -- they'll just book straight F anyway, as usual.

So they are pinning their hopes on "business travellers" (most of whom are in extreme cost-cutting modes where cheapest available fare is *mandated*)...and perhaps a few less price-conscious individuals. I just don't see that as a "growth" market; if anything, that is shrinking.

Elite status and an occasional "free" trip aren't worth it if you have to pay 3x-4x more on each paid flight to get those perks. That's a sucker's bet, and apparently CO is banking on enough people doing it to make it work. The difference in price between Y and F is often much smaller than the difference between Y and a discounted coach seat, and in the end, the latter will likely be receiving the same level of service.

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