FlyerTalk Forums - View Single Post - Erratic Rev. Management by go!
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Old Jul 29, 2006 | 5:28 pm
  #7  
gemac
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Originally Posted by slippahs
Now I will partially disagree, in my humble opinion. And, let me say that you will completely disagree with me. Anti-trust agreements ended years ago, and I'm sure AQ and HA are "stuck in their ways". But, being "stuck in their ways" seems less like we're being screwed. For the poor grandma in Waimanalo who booked a $59 fare on go!, only to see it go down to $39, $29.

$46. It seemed that the cheapest fare classes weren't added as the dates became closer. As opposed to go! who zeroed out cheap flight classes, then added inventory again.
Well, I guess I don't consider it such a bad thing. Granny in Waimanalo probably checked HA and AQ as well as go!, so she booked at $46 anyway (pretty savvy, those grannies). That's why yield management had to lower the fare from $59 to $39. . Now, granny's booking again, and booking go! at $39.

Stuck in their ways may seem less like we're being screwed, but it isn't what airlines need to do to promote long-term profitability. And long-term profitability is what all airlines need, to keep us from being really screwed. And the point I was making about mainland fare volatility was that this is how modern airlines maximize revenue (that's why they call it the "Yield Management" department, not the "stable prices for granny" department.
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