nguyenmtv18
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Quick Questions, Need Some Idea For My Paper

Mon Jul 26, 2010 1:12 am

I'm learning about the aviation industry and still so much stuff I don't understand. Can someone help please? Thank you.

On a typical flight we would find that passengers paid a wide variety of fares for basically the same service. Why is this the case? Why might a fare from New York to Miami cost than a flight from Fort Lauderdale to Tallahassee?
 
Braniff747SP
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RE: Quick Questions, Need Some Idea For My Paper

Mon Jul 26, 2010 3:04 am

Quoting nguyenmtv18 (Thread starter):
On a typical flight we would find that passengers paid a wide variety of fares for basically the same service. Why is this the case? Why might a fare from New York to Miami cost than a flight from Fort Lauderdale to Tallahassee?

Because the market MIA-NYC is sooooooo much bigger that Ft. Lauderdale to Tallahasse. More demand, price goes up. Less demand, price goes down... That's the simple way to put it.
The 747 will always be the TRUE queen of the skies!
 
airlinereporter
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RE: Quick Questions, Need Some Idea For My Paper

Mon Jul 26, 2010 3:38 am

It really depends on when you buy your ticket. Airlines assume, based on past load factors, how popular a route might be. If they expect it to be popular and have high prices but don't fill seats, they might lower them.

As Braniff747SP said, many shorter flights can cost quite a bit more, since they aren't a popular and less people fly, meaning the airline isn't flying a full aircraft and need to charge more to make money. Also, there might be less competition on shorter flights, meaning airlines don't have to fight for the business.

You are also going to find business versus personal travel. Most big business have an account set up and just pay what is advertised, where personal travelers will take advantage of Expedia, Kayak, etc to find the lowest price and airlines know that.
 
tdscanuck
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RE: Quick Questions, Need Some Idea For My Paper

Mon Jul 26, 2010 3:47 am

Quoting nguyenmtv18 (Thread starter):
On a typical flight we would find that passengers paid a wide variety of fares for basically the same service. Why is this the case?

Mostly because airlines use value pricing...individual seats aren't priced based on what they cost, they're priced on how much the customer is willing to pay. Thus seats way in advance are generally cheap, since the customer usually has a lot of options and isn't tremendously schedule sensitive. Last minute seats are extremely expensive because there must be a reason you want a seat at the last minute, the airlines know that, and so they charge you accordingly.

Pricing must be carefully balanced so that the aggregate revenue for the flight is sufficient to cover the carrier's cost, even if individual ticket prices vary wildly.

Tom.
 
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Starlionblue
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RE: Quick Questions, Need Some Idea For My Paper

Mon Jul 26, 2010 5:14 am

For the same reason as Tom states, return trips during the working week tend to be more expensive than return trips over a weekend. It is assumed that the market for the former is mostly business travelers whose companies are paying.
"There are no stupid questions, but there are a lot of inquisitive idiots." - John Ringo
 
nguyenmtv18
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RE: Quick Questions, Need Some Idea For My Paper

Mon Jul 26, 2010 6:09 am

Thank you so much for yall comments, greatly appreciated

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