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| WTF is up with airline price structure? https://forum.costaricaticas.com/viewtopic.php?f=4&t=10420 |
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| Author: | TicaFan [ Fri Feb 24, 2006 11:03 am ] |
| Post subject: | WTF is up with airline price structure? |
I live in Atlanta. A couple of examples: If I fly Delta out of Charlotte through Atlanta I pay around $300. If I catch that same aircraft in Atlanta I pay $600ish. If I fly NWA out of Birmingham through Atlanta I pay $432. If I make that reservation for a month from now and board that same plane in Atlanta they want over $800. WTH is their thinking? BTW, if anyone knows how much parking is in Birmingham please let me know.. I might just drive the 2.5 hours. |
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| Author: | Orange [ Fri Feb 24, 2006 12:34 pm ] |
| Post subject: | |
TF, It has to do with market share, revenue, and regional coverage. You have to remember, these airline execs have to answer to shareholders. SH demand a certain market share, this way the stock price stays level or increases. If, for example, they want to increase their numbers in Charlotte, they will drop the fares (temporarily) to a point where they beat all other airlines from that city. Even though, the Atlanta to SJO fare remains unchanged, because of the new fare from Charlotte, it seems very high and doesn't make sense. But the fact is that when they set the prices, it's done on an individual city basis based on their need (in terms of MS or revenue) in a particular city, but when we try to rationalize it by comparing with other cities, it doesn't work. |
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