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Originally Posted by dabanker Your post made good sense. It is a supply and demand/revenue management thing. It is good business practice. But I feel that there is no consistancy when quoting rates. You made reference of buying a gallon of milk at a convenience store. Yes you pay more, but that price is already set when you walk in the door. It's not set by the counter clerk. He's not going to charge $2.00 for the gallon of milk to me, then charge $8.00 for that same gallon to someone else. Most airlines use some type of revenue management program where the rates are already set. It just seems like it would be easy for a discrimination case. Most BM's at ERAC can't grasp the concept of revenue management. Not because they're not smart, but because they've never been introduced to it or studied it. What most BM's do is price gouging. |
You're right about the fact that the opportunity gets abused by unethical employees. When dealing with walk in customers, I personally quote based on what I think that individual would reasonably want to pay. There is not a large gap between one customer and the next, as far as what I quote, but I definitely try to "Top-Down" sell to get the most money possible.