richardw
Posts: 3142
Joined: Tue May 08, 2001 3:17 am

Cap On BA LGW Europe Fares?

Thu Oct 27, 2005 1:01 am

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.
 
ARGinLON
Posts: 550
Joined: Wed Jun 22, 2005 6:26 pm

RE: Cap On BA LGW Europe Fares?

Thu Oct 27, 2005 1:30 am

Why would you cap a fare when you can get more? Let the market decide what is willing to pay between A and B.
 
fbgdavidson
Posts: 3563
Joined: Thu Oct 14, 2004 6:25 am

RE: Cap On BA LGW Europe Fares?

Thu Oct 27, 2005 1:55 am

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
 
richardw
Posts: 3142
Joined: Tue May 08, 2001 3:17 am

RE: Cap On BA LGW Europe Fares?

Thu Oct 27, 2005 5:39 pm

I'm talking inflexible economy fares not CE.
 
BestWestern
Posts: 7187
Joined: Fri Sep 08, 2000 8:46 pm

RE: Cap On BA LGW Europe Fares?

Thu Oct 27, 2005 6:20 pm

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.
You are 100 times more likely to catch a cold on a flight than an average person!
 
richardw
Posts: 3142
Joined: Tue May 08, 2001 3:17 am

RE: Cap On BA LGW Europe Fares?

Thu Oct 27, 2005 6:30 pm

Because at the last minute when your competitors fares go well over the cap, say £375, you get the business.
 
vsflyer747400
Posts: 146
Joined: Thu Oct 13, 2005 6:34 pm

RE: Cap On BA LGW Europe Fares?

Thu Oct 27, 2005 6:31 pm

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
 
ARGinLON
Posts: 550
Joined: Wed Jun 22, 2005 6:26 pm

RE: Cap On BA LGW Europe Fares?

Thu Oct 27, 2005 6:37 pm

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.
 
richardw
Posts: 3142
Joined: Tue May 08, 2001 3:17 am

RE: Cap On BA LGW Europe Fares?

Thu Oct 27, 2005 7:09 pm

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.
 
fbgdavidson
Posts: 3563
Joined: Thu Oct 14, 2004 6:25 am

RE: Cap On BA LGW Europe Fares?

Thu Oct 27, 2005 11:28 pm

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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