FlyerTalk Forums - View Single Post - Erratic Rev. Management by go!
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Old Jul 29, 2006 | 9:41 pm
  #8  
formeraa
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Originally Posted by slippahs
Please re-read my post above. I'm not complaining about the change in $7. My complaint is as follows: "But, I just thought it should be known that after analyzing these fares for a few days across AQ, HA and go!, go! seems to be most erratic in the pricing of flights."

That said, for an airline that is trying to gain market share, for an airline that is claiming to "help" the islands people, for an airline that wants to bring $39 fares to the interisland market, changing fares so erraticaly, in my very humble opinion, is not "cool".

If you have a further beef with me on this issue, I suggest we take it up via PM.
I re-read your post several times before I posted. I honestly thought that you were complaining about the $7 more that you paid. Sorry that I mis-understood your post.

The bold comments in your response indicate that you are concerned with the erratic nature of go!'s fares. I can actually address that. Basically, AQ and HA have plenty of historical data by which they can forecast and optimize their allocation of seats to fare classes. When they observe changes in demand, they can "tweak" the allocation of seats.

On the other hand, go! has very little historical data to work with. Therefore, their optimization and allocation are being done on the fly with a lot of human intervention. The appearance is that things are changing constantly (which they are). That is the dynamic of having a new entrant in the market!

I hope that this explanation helps. I actually have both academic (Ph.D) and several years of airline industry experience in yield managment. I no longer work in the airline industry (hence formeraa) and am happy to try to answer yield managment questions.

Last edited by formeraa; Jul 29, 2006 at 9:57 pm
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