JayDavis From United States of America, joined Jan 2001, 2000 posts, RR: 14 Posted (9 years 12 months 3 days 6 hours ago) and read 2864 times:
Back when I first started to fly them in the mid-70's from LBB to DAL they had Executive Class flights and Pleasure Class flights.
All the flights M-F from 6:00 a.m. (I think) to 6:59 p.m. were the Executive Class fares, from 7:00 p.m. and on, M-F, Pleasure Class fares. Then on the weekend, ALL flights were Pleasure Class fares.
Do you think an airline such as Southwest could still be profitable with just a two-fare type structure? Would it save man-hour costs in terms of filing all the differents fares to all the GDS services and their own website?
DfwRevolution From United States of America, joined Jan 2010, 1208 posts, RR: 51
Reply 2, posted (9 years 12 months 3 days 3 hours ago) and read 2789 times:
Quoting JayDavis (Thread starter): Do you think an airline such as Southwest could still be profitable with just a two-fare type structure?
WN could do a lot of things and still be profitable.. the question is, how profitable would they be?
I have little doubt that WN's yield management is more sophisticated and more efficent in 2006 than it was in 1976. So much is done electronically that I don't suppose man-hours stand in the way of precisely offering the right price for a seat.
DLKAPA From , joined Dec 1969, posts, RR:
Reply 3, posted (9 years 12 months 3 days 3 hours ago) and read 2773 times:
The only drawback of a two-tier system is that people paying the higher tier are going to expect a better product than those in the lower tier. How do you differentiate? New interiors on some aircraft but then you need a dedicated fleet. Costs could go up quick if they do decide to switch.
Midway2airtran From United States of America, joined Jul 2003, 864 posts, RR: 2
Reply 4, posted (9 years 12 months 3 days 2 hours ago) and read 2743 times:
Very good question, it would be scary to most carriers if they simplified to two fares.
Generally the more fares you have, the more options you have to generate the most revenue out of the passenger. It's almost like buying a car from a used car lot. Technology makes another twist in the game too.
I personally feel that simplifed fare structures benefit customer service and cost savings by eliminating complication.
However many IMO have gone too far (mostly Legacy carriers) with this and it backfires, turning potential passengers away.
Southwest is still fairly simple, I believe 6-7 fare tiers; same goes for other lowfare carriers too. Notice that I mentioned "lowfare", not just LCCs!!