Ticket to Asia:

Y: $1000 or 60,000 miles
C: $5000 (400% more than Y) or 90,000 miles (50% more than Y)
F: $10,000 (100% more than C) or 120,000 miles (33% more than C)

Query: Why does UA offer mileage seats at such a bargain as compared to revenue seats?

Possible answers:

• Premium seats booked with mileage are capacity-controlled and would likely go empty anyway. Thus, the supply and demand principle dictates a lower price in miles.
• People paying cash for seats in premium cabins are not as cost sensitive as those paying miles for the same seats. Revenue C and F are generally purchased by business travelers, whose expenses are paid for by their employers. Businesses generally do not have a stash of miles with which to purchase their employees' tickets; thus, mileage C and F are generally purchased by leisure travelers. Leisure travelers generally cannot afford to spend 400% more than the price of a Y seat for a C seat. Thus, the principle of cost discrimination dictates a higher cash price.

Any better answers?