Originally posted by Lady Elite:
My theory is that they triple and quadruple the prices up to ridiculously inflated amounts on the assumption that anybody who *has* to leave in less than two weeks (or, someone who doesn't want to stay a Saturday night) must be a business flyer, and not paying for his/her own flight. Thus they feel ethically just in charging some faceless corporation an over-inflated price because they just know the CEO will sign off on it.
Not always the case of 'Big Business' having to pay these fares...Although most of the time I can book my business travel well in advance, my family's small company (we have 40 or so employees) has to spring for sudden travel here and there, spending $1000 or more for a single roundtrip domestic ticket.
Businesses have the option of taking the flight or not...If I need to be in Los Angeles or New York or Podunk Nebraska tomorrow for a customer who wants to place a $500,000 order in person, I'll sure as heck pay $1000 to get there, or buy him/her a $1500 first class ticket to come see me.
I could take the flight and get the order, or I could choose not to take the flight and not get the order...I guess in my case it has to do with our profit margins--we'd make enough on a big order to justify me going on the sudden trip.
I could also opt for a Saturday night stay...Sometimes I do, sometimes I don't--depends on the city and the price difference. But the airlines know that I don't want to spend an extra night or two sometimes, and when I don't, that's where they make their money...By posting their fares, they ask me what's the value of my staying away from home for an extra day or two.
Besides, if last-minute travel fares weren't higher, there would be no $198 cross-country trips. It's all subsidation. (Although a recent post I recall reading posed the question whom is subsidizing whom) I think the high fares and low fare compliment each other--both would be higher without the other.
[This message has been edited by MBS PremExec (edited 04-13-2001).]