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Old Feb 21, 06, 6:57 am
  #44  
andre1970
 
Join Date: Jan 2005
Location: A Sight For Roll Eyes
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Who is the good customer?

Originally Posted by totti
LH should go on to improve their C and F cabin. There are a lot of pax who still pay a good price (not only Z)...
1. I don't want to enter the discussion "which class of service should an airline improve?".

2. Let me remind you nevertheless, that the pax you refer to pay for fle-xi-bi-li-ty, and not for the chair.
Try to interpret the price difference of a fully flexible (transpac or transatlantic) Y ticket with a full fare C ticket. Surprise - surprise! It is very close to the price of a Z fare! This is how much an airline prices the difference in in-flight service. And this is the reason why you actually see people paying 5000 for an "economy" ticket while others pay 2000 for a "business" ticket on the same flight:
Because your disesteemed Z-fare guy who flies business does not fly for business. He would however gladly pay a 1500-2000 cap to have a better chair and decent catering for his summer holiday trip (instead of being stacked with the plebs) which he planned at least 50 days in advance.

Bottomline: What is the most effective pricing policy for an airline? Managing to make someone pay 2500 (restricted business) instead of 500 (restricted economy), or make someone pay 6000 (flexible business) instead of 4000 (flexible economy)? In other words, convincing someone to fly (let alone get him to pay 2000 more) when they do not have to, is IMO much more remarkable than getting someone (who would fly anyway...) to choose better conditions of (unavoidable) travel.
Because the guy who would pay 6000 (flexible business) instead of 500 (restricted economy) is not yet born...

Cheerio
A.
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