How US-Based Airlines Are Making More $$$

Discussion in 'Other Airlines | North America' started by Newscience, Mar 22, 2014.  |  Print Topic

  1. Newscience

    Newscience Gold Member

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    Airlines Are Mastering the Upsell

    By Alexander MacLennan | More Articles
    March 22, 2014

    The airline trend of shrinking seats has an added benefit of giving airlines something else to sell - a better seat! This article describes increased revenue strategies from selling coach class seating at Spirit, Delta, Southwest and United Airlines.

    "Perhaps the biggest change for the modern airline industry is the realization on the airlines' part that there is a great potential for ancillary revenue generation by selling extras to otherwise uncomfortable economy class passengers."

    Read the article here:

    http://www.fool.com/investing/general/2014/03/22/airlines-are-mastering-the-upsell.aspx
     
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  2. Terry Yap

    Terry Yap Gold Member

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    man, and Delta still devalues its programme recently ???
     
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  3. gregm

    gregm Gold Member

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    From the article:
    Are airlines just giving us what we want?
    "Like many things in life, travelers want low prices and the best of everything. But like pretty much everything else, customers cannot have both while preserving a viable business. So airlines are making us offers, and we have tended to favor the lowest-price ones with less space rather than higher-priced ones with more space.

    Since deregulation of the industry, airlines have been fighting to drive down costs to please travelers searching for the best price. Perhaps the biggest change for the modern airline industry is the realization on the airlines' part that there is a great potential for ancillary revenue generation by selling extras to otherwise uncomfortable economy class passengers."

    Business is business. The airlines are not in it to not make money. I do, however, see an excess of these 'extras' being marketed.
     
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