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Why are commuter flights so expensive?



 
 
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  #21  
Old November 26th 04, 11:38 PM
NW_PILOT
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"C Kingsbury" wrote in message
nk.net...

"Jay Honeck" wrote in message
news:fIspd.85397$V41.82999@attbi_s52...

Question: WHY do the airlines that fly into Cedar Rapids insist on

flying
back and forth with mostly empty planes? Would it not make sense, say,

30
minutes before departure, to drop the price until the plane was full?

This
is basic "Econ 101" -- if empty, lower the price until demand matches
supply.


Nobody goes to or from Cedar Rapids for the heck of it. Either you live
there or are going for business. If you're a resident then you've made

plans
weeks in advance, and if you're on business you'll go regardless of price
(more or less). In fact last-minute prices are usually exorbitant because
people who buy last-minute tickets mroe often *need* to get there and thus
are willing to pay a lot more. If you're planning a vacation six months

from
now and tickets to Vegas are $99 and Tampa are $500 then you'll go to

Vegas.
OTOH if your client in Tampa is threatening to give the account to your
competitor then you'll pony up thousands without a second thought, so the
airlines take the opportunity to stick it to you.

What's destroying this is the presence of low-cost carriers with very

simple
price models where you don't see 5-1 or 10-1 price disparities between
day-of and advance-purchase tickets.

FWIW in Europe I see a lot more of these "last minute bargain" deals in
Europe. The travel agents at the airport frequently sell all kinds of
super-cheap seats on flights leaving literally that day. I think this is
more popular there because (1) they have less money to spend and (2) they
take a lot more vacations so they're willing to "take a chance" and wing

it.

-cwk.


My last commercial flight to Vegas and back was free! Called up my hotel and
transferred $3,000 in cash to my hotel account they had me an E ticket at
the airport waiting for me when I arrived a few hours later. If you are
going to Vegas call your hotel and open up an account 3 to 5k they will pay
for you flight to come and gamble.


 




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