413x3 From United States of America, joined Jul 2008, 1983 posts, RR: 0 Posted (5 years 9 months 1 week 1 day 18 hours ago) and read 2187 times:
Flight during the week for a random week day. LAX to ORD
Coach - $200 RT
Business - $1300
First - same as business...
Why so high for business and first, but rock bottom for coach? I would pay for a business class ticket if it was 500-600. Do they really fill the seats with business/first travelers? Maybe if prices were less they could not upgrade people for free and might come out with more profit?
Just a wild guess I'm not very familiar with ticket pricing schemes.
413x3 From United States of America, joined Jul 2008, 1983 posts, RR: 0
Reply 4, posted (5 years 9 months 1 week 1 day 17 hours ago) and read 2131 times:
Well they do seem to have a good number of empty seats, that's why people often get upgraded for free. Why not make the prices a little cheaper and get someone like me to pay instead of giving up a free upgrade
PEET7G From Hungary, joined Jan 2007, 696 posts, RR: 0
Reply 6, posted (5 years 9 months 1 week 1 day 16 hours ago) and read 2023 times:
Quoting JU068 (Reply 1): Isn't business class filled by companies who don't really care that much about the prices and don't mind paying a bit more?
Well, not really in these days
Taking our example we do outsourced business processes everything from IT support to financial management, for really big businesses... In the old days "pre-restrictions" traveling for our level was pretty much the highest you could get, for lower ranks eco was target and business for anything longer than 5 hours.
Now we do the same amount of traveling simply on the lowest available fare basis. It means no way in hell to get business on intra-European flights, or whenever flying anywhere short haul. Also ECO cabin for everyone on long haul flights, only getting Business when traveling on a "work on next day" basis (meaning, you arrive in the early morning and required to work upon arrival, so the sleep you get is on the plane )... First is only when the airline bumps us up there
The reason why the airlines will not "de-value" their premium product is a simple lesson in any "eco-book"
If you "de-value" your product and your customers will get used to it! It will be almost impossible to raise the prices back up, once the economy recovers.
I guess (and hope they are right) that the airlines believe once the world economy will be back to normal, the companies will start spending on their premium product once again.
"de-valueing" or dumping your premium product could be a good solution for immediate cash-flow stimulation, but it might be an own-goal in the long run...
besides, taking your own numbers, if they dump the business and First seats out on your given rate, It would mean the same amount of cash generated in a full cabin as with an approximately 40% filled cabin, with more stress on the crew, etc... so why go through the hassle and why not fly empty seats for the same amount of cash generated and let some passengers feel privileged by upgrading them to the empty seats?