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

["Brent Deterding" <EMAIL:PROTECTED>]

No joke - I've yet to be questioned once on what I spend on the road - car,
hotel, airfare - whatever. I try to keep it reasonable but put my
convenience well above saving a couple hundred bucks. And if they need me
someone *now* then forget it - it costs money to get me there *now* -
independent of me. I've paid $1500 for a plane ticket before . . .

-----Original Message-----
From: EMAIL:PROTECTED
[mailto:EMAIL:PROTECTED]On Behalf Of Dave Lloyd
Sent: Thursday, February 05, 2004 10:51 AM
To: MLUG Off-Topic Discussion
Subject: Re: [MLUG - DISCUSSION] Cheap flights (Was: State Farm Stays)


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.

--
--dlloyd

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