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Cap On BA LGW Europe Fares?  
User currently offlineRichardw From United Kingdom, joined May 2001, 3759 posts, RR: 0
Posted (9 years 1 month 2 days 10 hours ago) and read 3141 times:

Would it be good marketing/business to cap some of their economy fares on destinations to Europe from LGW or would this be a revenue loser?

I'm thinking say LGW-BCN max £297 return.

9 replies: All unread, jump to last
 
User currently offlineARGinLON From Vatican City, joined Jun 2005, 614 posts, RR: 0
Reply 1, posted (9 years 1 month 2 days 9 hours ago) and read 3097 times:

Why would you cap a fare when you can get more? Let the market decide what is willing to pay between A and B.

User currently offlineFbgdavidson From United Kingdom, joined Oct 2004, 3713 posts, RR: 28
Reply 2, posted (9 years 1 month 2 days 9 hours ago) and read 3079 times:

Why are you specifically saying this with regard to BA fares ex-LGW? Why not all CE fares?

297GBP sounds pretty good for a year round CE fare. I've flown down to BCN a number of times in CE and it is a good length of flight to enjoy full CE service.



"My first job was selling doors, door to door, that's a tough job innit" - Bill Bailey
User currently offlineRichardw From United Kingdom, joined May 2001, 3759 posts, RR: 0
Reply 3, posted (9 years 1 month 1 day 17 hours ago) and read 3004 times:

I'm talking inflexible economy fares not CE.

User currently offlineBestWestern From Hong Kong, joined Sep 2000, 7264 posts, RR: 57
Reply 4, posted (9 years 1 month 1 day 17 hours ago) and read 2980 times:

Why do that.... Better to offer more cheap fares, and balance that with really expensive full Y and full C fares. If the demand is there, why not exploit that, and make a fortune.


The world is really getting smaller these days
User currently offlineRichardw From United Kingdom, joined May 2001, 3759 posts, RR: 0
Reply 5, posted (9 years 1 month 1 day 17 hours ago) and read 2975 times:

Because at the last minute when your competitors fares go well over the cap, say £375, you get the business.

User currently offlineVSFLYER747400 From United Kingdom, joined Oct 2005, 134 posts, RR: 0
Reply 6, posted (9 years 1 month 1 day 16 hours ago) and read 2973 times:

The problem that might arise is the IB code share - by imposing a price cap surely IB would have to impose the same rate? The question is - would they be willing to, given that BA market seats on IB operated flights too.


Being on: (in no order) VS BA AA EK CX MH DL EI BD KL HV NW RC LH AF DA TG QF US FR LX AC SK AZ PG SQ UA PA
User currently offlineARGinLON From Vatican City, joined Jun 2005, 614 posts, RR: 0
Reply 7, posted (9 years 1 month 1 day 16 hours ago) and read 2970 times:

Quoting Richardw (Reply 5):
Because at the last minute when your competitors fares go well over the cap, say £375, you get the business

It doesn't work like that. If you lower your fares your competitors will do exactly the same bringing the whole fare structure for the route down.

Airline pricing is a matter of matching your competitors. If BA goes down, all competitors will follow.


User currently offlineRichardw From United Kingdom, joined May 2001, 3759 posts, RR: 0
Reply 8, posted (9 years 1 month 1 day 16 hours ago) and read 2952 times:

I'm not talking about lowering all fares.
I'm thinking of a cap on a totally non refundable inflexible economy fare, that is also quota controlled.
Flexible fares would remain without a cap and business class fares unchanged.

Advertising a capped fare may also drive a bit of last minute business to BA instead of just assuming that orangeJet is the cheapest because it is a 'Low Cost' airline.


User currently offlineFbgdavidson From United Kingdom, joined Oct 2004, 3713 posts, RR: 28
Reply 9, posted (9 years 1 month 1 day 12 hours ago) and read 2915 times:

Quoting Richardw (Reply 3):
I'm talking inflexible economy fares not CE

Good point! Not sure where I came up with the CE bit Embarrassment



"My first job was selling doors, door to door, that's a tough job innit" - Bill Bailey
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