Re: [MLUG - DISCUSSION] Cheap flights (Was: State Farm Stays)

[Mike Miller <EMAIL:PROTECTED>]

On Thu, 5 Feb 2004, Dave Lloyd wrote:

> On Thu, 5 Feb 2004, Mike Miller wrote:
>
> > Are you saying that Glasgow-Stockholm roundtrip is only $40, taxes
> > included?  That is remarkable.  I don't see how they can make money,
> > especially if it is true that $32 of that is tax!!
>
> Airfares are an almost perfect example of what's called perfect price
> discrimination.  If you have several people (business travelers such as
> my self, specifically) who pay $1500/ticket to get there *NOW*, then you
> can sell the rest of the empty seats on the airplane and make
> incrementally more money.  For all practical purposes, it costs the same
> to fly a MD-80 from point A to point B whether there are 5 or 50 people
> aboard.  You may as well make anything you can on each seat to make an
> incremental revenue.


US carriers don't do that.  You can't just show up at the last minute and
get a cheap flight.  Maybe they found out that people were doing that
instead of buying advance tickets at high prices.  So planes fly nearly
empty, often, even if someone is willing to pay $100 or more to get
onboard.

Mike
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