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Started By
Message
Can Someone Explain Airline Economics?
Posted on 8/22/14 at 1:49 pm
Posted on 8/22/14 at 1:49 pm
It would seem to me that if you have a plane that hold 275. If by the Thursday prior to a Friday flight there are 100 empty seats,the prices would dramatically drop instead of skyrocketing.
It seems to me less demand, with a static travel cost, it would be wiser to drop prices in a market that is increasingly competitive instead of almost tripling.
Explain airline economics to me and convince me this isn't collusion by the airline companies.
It seems to me less demand, with a static travel cost, it would be wiser to drop prices in a market that is increasingly competitive instead of almost tripling.
Explain airline economics to me and convince me this isn't collusion by the airline companies.
This post was edited on 8/22/14 at 1:50 pm
6
Posted on 8/22/14 at 1:50 pm to Cajun Revolution
No
Posted on 8/22/14 at 1:51 pm to Cajun Revolution
I guess they figure they can make more money screwing over someone who needs a flight on short notice than they can enticing flexible travelers with lower fares.
Posted on 8/22/14 at 1:51 pm to Cajun Revolution
Posted on 8/22/14 at 1:51 pm to Cajun Revolution
quote:
convince me this isn't collusion by the airline companies.
By nature they are an Oligopoly market structure which is prime for good old collusion.
Posted on 8/22/14 at 1:52 pm to Cajun Revolution
Put simply, they don't care about discount travelers.
They know that the vast majority of people booking very last minute are likely people who book for business who will pay for it no matter what the cost is.
It's the same reason nicer hotels charge $10 a night for WiFi while a $39 Motel 6 offers free WiFi. Has nothing to do with the price, but rather they know businesses will pick up the tab for it.
They know that the vast majority of people booking very last minute are likely people who book for business who will pay for it no matter what the cost is.
It's the same reason nicer hotels charge $10 a night for WiFi while a $39 Motel 6 offers free WiFi. Has nothing to do with the price, but rather they know businesses will pick up the tab for it.
Posted on 8/22/14 at 1:54 pm to Cajun Revolution
Quick question, when was the last time you were on an aircraft that had anywhere near 100 empty seats?
Posted on 8/22/14 at 1:57 pm to Eighteen
Think about it more as a long term thing.
If it gets known that an airline drastically cuts its airfares right before the flight date, everyone would wait to buy tickets just before the flight. This would completely screw up their planning.
Plus the business traveler thing.
If it gets known that an airline drastically cuts its airfares right before the flight date, everyone would wait to buy tickets just before the flight. This would completely screw up their planning.
Plus the business traveler thing.
Posted on 8/22/14 at 1:58 pm to FloridaMike
Try a morning flight out of BR.
Posted on 8/22/14 at 1:58 pm to Cajun Revolution
quote:
Try a morning flight out of BR.
Which one? They're all full.
Posted on 8/22/14 at 1:59 pm to CT
And none of them hold 100 people anyway.
Posted on 8/22/14 at 2:00 pm to CT
Nah. I took one to Dallas last year in April that was pretty much half full.
ETA: Actually technically that was to houston because it connected.
ETA: Actually technically that was to houston because it connected.
This post was edited on 8/22/14 at 2:02 pm
Posted on 8/22/14 at 2:17 pm to FloridaMike
Connected in Houston on a flight home to BR and was one of probably 5 or 6 people on the plane from Houston to BR
Also returning home from Europe connected in Detroit and was one of probably 20 people on a Detroit to Nola flight
Also returning home from Europe connected in Detroit and was one of probably 20 people on a Detroit to Nola flight
Posted on 8/22/14 at 2:29 pm to FloridaMike
quote:
Quick question, when was the last time you were on an aircraft that had anywhere near 100 empty seats?
Little over a month ago. Might not have been 100 but it was a lot.
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