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by mantasm
3865 days ago
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I wouldn't segregate the general approaches to life in that sense. Providing different prices to different groups of people does not result in "everyone winning". It's a classical example of market segmentation, price based on the average ability to pay of someone who holds the currency. It entirely benefits the airliner, and their profits, to be able to do so. The "hidden city" tickets? A cheaper ticket to go from A->B->C than A->B is a deadweight loss in the market (assuming competitive markets). Prices are not reflecting costs, and airlines again are segmenting based on ability to pay. |
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You're right - the prices are not reflecting the costs. A typical traveler pays nowhere near the price they would if there was no segmentation. An average tourist ticket multiplied by number of passengers is barely enough to fuel a jet. And you have to pay the pilots, the airplane crew, the ground crew and still have enough to keep the lights on at the airport. Airlines are in a shitty position, and while probably some of it its their own fault, I'm not that sure if being hard on them is helping anyone.