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pune
Topic Author
Posts: 404
Joined: Tue Feb 12, 2019 9:18 am

Covid19 and airlines pricing model

Thu Sep 03, 2020 7:33 pm

Just saw this interesting video -

https://www.youtube.com/watch?v=H_akzwzghWQ

I do think he is right on the money that recovery will take a long time and it would be unpredictable for a much longer time to come. What do you all think ?
 
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AC853
Posts: 91
Joined: Sat Aug 15, 2009 11:14 pm

Re: Covid19 and airlines pricing model

Fri Sep 04, 2020 1:12 am

Very interesting video on revenue management. I think he’s correct in his assumptions.
 
Bolante007
Posts: 5
Joined: Sun May 26, 2019 12:35 am

Re: Covid19 and airlines pricing model

Fri Sep 04, 2020 2:35 am

I think airlines are trying to survive as much as possible, however the video does touch a good point, uncertainty. Everything in this video is on point, the pricing model is absolutely broken and travelers are broken due to the current restrictions and somehow the airlines will have to come up with new ways to somehow predict consumer behavior while dealing with COVID. While lowering the price of flights may not work due to revenue keeping them at the same price but flying less in a week to a certain city may be the only way to go for some airlines. In Japan for example, after the Tokyo lock down was over, other prefectures started opening their airports and flying less, airlines adapted to 5x weekly schedule to a 2x to 3x weekly to keep not just demand but some revenue going. ANA has been hit hard the most, while JAL has also been hit hard and twice due to their poor financial decision few years ago, they are still paying for it, though Japanese travelers are more keen to travel locally than internationally due to their concern of bringing back the virus(although not all of them). I believe airlines will start flying less per week as before to keep some demand and have at least a semi full plane, and for some odd reason prices to EU are a lot cheaper than going back to the US.
 
tcfc424
Posts: 582
Joined: Mon Nov 17, 2003 11:56 am

Re: Covid19 and airlines pricing model

Fri Sep 04, 2020 3:20 am

Prices to the EU are cheaper because there are less taxes and "carrier fees." Coming from points in the EU, especially LHR, those duties and "carrier fees" are very high. It is widely known that a way around this is to fly into the EU, then take a "free" stopover (because it is less than the departure taxes and fees) in a place like CDG or AMS before flying back to the USA from there. The taxes and fees are still higher than ex-US, but less than ex-LHR. In the COVID-19 era, however, people may not be as free to move between those locales as before.
 
audhawiod123
Posts: 5
Joined: Sun Jan 19, 2020 8:35 pm

Re: Covid19 and airlines pricing model

Tue Sep 08, 2020 8:27 pm

Airlines failed to consider the possibility for the unimaginable"

As failures go, maybe failing to foresee the unimaginable is not such a bad one :).
 
audhawiod123
Posts: 5
Joined: Sun Jan 19, 2020 8:35 pm

Re: Covid19 and airlines pricing model

Thu Sep 10, 2020 9:47 am

audhawiod123 wrote:
Airlines failed to consider the possibility for the unimaginable"

As failures go, maybe failing to foresee the unimaginable is not such a bad one :).

because it is less than the departure taxes and fees) in a place like CDG or AMS before flying back to the USA from







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