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Author Topic: C Prices Lower Than Y For Same LF!  (Read 331 times)

BD

  • Former member
C Prices Lower Than Y For Same LF!
« on: June 13, 2013, 03:28:00 PM »
I've run across a few cases where, for both Y pax and C pax, I've been able to consistently price the Y higher than the C and maintain them in the same target LF range (within 5-10% points of each other, allowing for weekly variation)??

This seems to be an anomaly in the price demand model, as IRL it would not happen.  Would like to know what the circumstances are that drive this.

Anyone else run into this?

Offline Sami

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Re: C Prices Lower Than Y For Same LF!
« Reply #1 on: June 13, 2013, 09:55:19 PM »
At first sounds a bit strange, but currently each travel class is treated separately. And if there is much more demand than seats available in Y class, for example, you are able to charge a high premium on those seats. In the future one plan is to ignore the predefined F/C/Y classes and focus on passenger type (business, leisure etc) instead which in turn will result to the selection of the ticket type.

BD

  • Former member
Re: C Prices Lower Than Y For Same LF!
« Reply #2 on: June 14, 2013, 12:50:57 PM »
Sami, thanks for the explanation.  Was thinking that I was maybe missing something.  The new travel type pax should prove interesting!

Offline Sami

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Re: C Prices Lower Than Y For Same LF!
« Reply #3 on: June 14, 2013, 03:53:15 PM »
Yes, the idea is that you have people flying for business, people flying for leisure and so on, and each passenger profile has then "desires" based on how quickly they have to be there, at what time, at what price and at what comfort etc, and this will determine also what class they will take. But this is not anywhere near yet but instead part of a bigbigbig development package that has been in brainstorming and initial data collection stages.

 

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