|
|
|
|
|
by ShabbyDoo
5250 days ago
|
|
>Why not just take more profit? Why do businesses not just raise prices on everything? Unless they are colluding and very good at limiting competition/alternatives, a competitor will happily undercut them. I'm happy that airlines are beginning to decouple the service offerings of a seat, food, and baggage handling. This means that I can choose a flight which maximizes my happiness at a particular price point. Is United offering cheap fares but charging for baggage? Maybe I'll choose them when making an overnight trip. No food service? My local gourmet grocery sells very good take-out lunch boxes, so I'll just bring one of those onboard. So, charging by weight is just another means of pricing innovation. What are some other ways the airlines could achieve price discrimination? The days of charging extra without a Saturday night stay seem all but gone thanks to Southwest and other innovative airlines. |
|