Originally Posted by ncwillett
(Post 30320365)
The laws of supply and demand are just that- SUPPLY AND demand. They work together. When demand is significantly decreased, either the price will drop OR supply will drop. Delta can adjust supply in lower demand periods by either reducing the number of flights or by adjusting the aircraft that serve the route.
The reality is that on a demand basis Delta is willing to fill many of these seats on the same flights for as low as $100-150. Fare sales are quite frequent (especially in competitor hubs) and Delta will fill these seats by increasing quantity demanded by lowering price for some markets. The fact that these one-ways are universally 105K means that they are indeed not demand based - they are meant to be punitive such that no one books them. Delta is basically telling its customers "don't use SkyMiles for this type of fare." You can agree or disagree with Delta's approach (Delta has the right to effectively prohibit one way redemption in their program if they wish - similar to what they used to do to domestic award tickets) - but you cannot say that the fares are demand-based. |
Originally Posted by Gig103
(Post 30319826)
Sorry to be a bit of a Devil's advocate, but "a flat rate of _____ miles for one-way TATL" is exactly what UA and AA do with published award charts. The 105k is arbitrary, just like 30k is arbitrary.
Originally Posted by ncwillett
(Post 30320359)
Ultimately it is. If they can't sell award flights for that number of miles and they can't otherwise fill the seats, something will change.
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Originally Posted by Cledaybuck
(Post 30320629)
I'm sure others will disagree, but I would take that in an instant if it came with the same refundability rules as Southwest.
Some members also keep the Amex card specifically for PWM, that's another subset that like them as a 'currency'. of course, the PWM tickets earn medallion status which is awesome and has me considering one of the cards. |
Originally Posted by Gig103
(Post 30321149)
I hear you on that and you're probably right. Many PM/DM around here talk about the free redeposit as a major perk. And I say that only having been reading the Delta forum for a few months!
Some members also keep the Amex card specifically for PWM, that's another subset that like them as a 'currency'. of course, the PWM tickets earn medallion status which is awesome and has me considering one of the cards. |
Originally Posted by ncwillett
(Post 30320359)
Except that Delta isn't a true monopoly. There may be a few tiny, small town airports served primarily by a few Delta commuter jets only, but that's not what anyone's been talking about here. Most airports have some level of competition among airlines and passengers can make a choice.
Transactions are made where supply and demand curves meet. In the case of Skymiles, which is a monopoly, DL chooses the supply without having to consider demand. There is no supply curve, therefore you can't say supply and demand dictate the outcome. DL may consider demand, but they don't have to. Yes, a person can choose to change programs, but they can't bring their Skymiles with them. |
Originally Posted by ethernal
(Post 30320948)
You can agree or disagree with Delta's approach (Delta has the right to effectively prohibit one way redemption in their program if they wish - similar to what they used to do to domestic award tickets) - but you cannot say that the fares are demand-based.
Originally Posted by CPMaverick
(Post 30323600)
Transactions are made where supply and demand curves meet. In the case of Skymiles, which is a monopoly, DL chooses the supply without having to consider demand. There is no supply curve, therefore you can't say supply and demand dictate the outcome. DL may consider demand, but they don't have to. Yes, a person can choose to change programs, but they can't bring their Skymiles with them. |
Sorry, this just isn't a supply and demand scenario based on the economics of it. State your opinion another way but don't use terms that don't fit.
Yes Delta might consider demand but market forces are not setting the price. |
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