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Does Airlines make exceptions for the Digital Divide?

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Does Airlines make exceptions for the Digital Divide?

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Old Jan 12, 2009 | 3:45 pm
  #16  
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Originally Posted by cparekh
I guarantee you that as soon as most (or even many) people refuse to book AA because of the fee, that fee would go away because it would be an ineffective way to extract additional revenue from those willing to pay it.
Where will one go instead of AA?
IIRC, virtually every major airlines charge phone service fee (please correct me if I'm wrong here).

UA doesn't even waiver phone ticketing fees for the things that cannot be booked on united.com, so I highly doubt airlines will waive fee for OP's aunt.
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Old Jan 12, 2009 | 4:36 pm
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Originally Posted by cparekh
Yes. it absolutely is, and it's not just AA. It's a pricing scheme called second-degree price discrimination. You know it as a senior citizen discount or a student discount. On AA, you know it as a lower price if you are willing to book two-weeks in advance or stay Saturday night. The point is that AA (or any business) will work very hard to extract as much money as possible from those willing to pay it. As AA sees it, I (net savvy) am not willing to pay, while your aunt is (or she could find some way not to). Technology has not raised the price for your aunt, it has simply lowered overall cost to all passengers by finding a way to differentiate between two levels of willingness to pay.

I guarantee you that as soon as most (or even many) people refuse to book AA because of the fee, that fee would go away because it would be an ineffective way to extract additional revenue from those willing to pay it.
No, this is not price discrimination. Not even close. If older people had more money to spend, then maybe. On the contrary, it's a known fact that older people typically have less money to spend and are thus less willing to spend it. (That's why you can find senior citizen fares on certain routes, which can be quite attractive.)

Airlines are not trying to extract the extra $20 from an old person. They are simply trying to discourage people from booking by phone because of the costs involved in paying the agents. Ideally, the airlines would like it if EVERYONE would book online (not to mention make changes online, select seats online, check-in online, etc. - also partially why fees for some of these things sometimes exist). That would save them a LOT of money.
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Old Jan 12, 2009 | 4:53 pm
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Old Jan 12, 2009 | 5:01 pm
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The "digital divide" on a global scale is, I'd imagine, part of the reason why airlines don't charge telephone booking fees everywhere.

This is also a cultural thing. People in Bermuda are still conditioned to dealing with a real person. Local travel agencies charge $50 per booking and still have very brisk business. DL, for instance, does not charge a fee for telephone or in-person bookings for flights originating Bermuda. People here would completely stop buying DL tickets.
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Old Jan 13, 2009 | 1:13 am
  #20  
 
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I don't know how to work on cars.

My neighbor is a mechanic and he fixes his own cars.

I pay 350 bucks to have a timing belt replaced whereas he pays just 60 bucks for parts and replaces his own.

Am I being taxed for lacking the knowledge to work on cars?
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Old Jan 13, 2009 | 8:09 am
  #21  
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Can we move this over to another thread? Like the Huffington Post...
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Old Jan 13, 2009 | 8:40 am
  #22  
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Originally Posted by cparekh
Yes. it absolutely is, and it's not just AA. It's a pricing scheme called second-degree price discrimination. You know it as a senior citizen discount or a student discount. On AA, you know it as a lower price if you are willing to book two-weeks in advance or stay Saturday night. The point is that AA (or any business) will work very hard to extract as much money as possible from those willing to pay it. As AA sees it, I (net savvy) am not willing to pay, while your aunt is (or she could find some way not to). Technology has not raised the price for your aunt, it has simply lowered overall cost to all passengers by finding a way to differentiate between two levels of willingness to pay.

I guarantee you that as soon as most (or even many) people refuse to book AA because of the fee, that fee would go away because it would be an ineffective way to extract additional revenue from those willing to pay it.
Ohmigod! Do you mean to tell me that airlines are a BUSINESS?!?!?!?!?!
For profit and everything????
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