Comments on: Up, Up, and Dismay… http://scenariosandstrategy.wordpress.com/2009/01/04/up-up-and-dismay/ They are ill discoverers that think there is no land, when they can see nothing but sea. (Sir Francis Bacon) Fri, 27 Nov 2009 19:45:00 +0000 http://wordpress.com/ hourly 1 By: godfreyparke http://scenariosandstrategy.wordpress.com/2009/01/04/up-up-and-dismay/#comment-42 godfreyparke Mon, 05 Jan 2009 22:23:19 +0000 http://scenariosandstrategy.wordpress.com/?p=204#comment-42 Nice posting, only one thing I would add. The legacy airlines have expended great effort on maximizing revenue from ticket sales. At first blush, that sounds like a great idea, but it's computer driven and I wonder if they haven't lost control of their pricelist. I have a screen dump from the United site (sorry, I can't post images) for a Boston to Miami flight. Here are the quoted prices: Economy (lowest) - $325.60 Economy (refundable) - $1,471.10 First (lowest) - $1,067.60 First (refundable) $1,067.60 What clever program makes refundable economy class 40% more expensive than refundable first class? I've seen the TV programs that interview the Ph.D. rocket scientists in airline pricing departments, with their impressive explanations of yield per seat. I also remember seeing TV programs that interview Ph.D. rocket scientists in mortgage underwriting departments, with a different set of equally impressive explanations. Airline management does not understand their own pricing or flight schedules or maintenance schedules, much less their customers. So how can they manage? Nice posting, only one thing I would add.

The legacy airlines have expended great effort on maximizing revenue from ticket sales. At first blush, that sounds like a great idea, but it’s computer driven and I wonder if they haven’t lost control of their pricelist.

I have a screen dump from the United site (sorry, I can’t post images) for a Boston to Miami flight. Here are the quoted prices:

Economy (lowest) – $325.60
Economy (refundable) – $1,471.10
First (lowest) – $1,067.60
First (refundable) $1,067.60

What clever program makes refundable economy class 40% more expensive than refundable first class?

I’ve seen the TV programs that interview the Ph.D. rocket scientists in airline pricing departments, with their impressive explanations of yield per seat. I also remember seeing TV programs that interview Ph.D. rocket scientists in mortgage underwriting departments, with a different set of equally impressive explanations.

Airline management does not understand their own pricing or flight schedules or maintenance schedules, much less their customers. So how can they manage?

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