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WEB ANNOUNCE:

Special ticket price discrimination is worth promoting

From;  Author: Position:home>Civil Aviation Information>

A few days ago, the online booking of the two round-trip special fares, online check-in went to see a bit and found the same flight ticket prices almost doubled. I could not help but appreciate that this pricing strategy full and flexible use of the laws of the market, the distinction between the consumer groups to achieve profit maximization. It was hot to look at "aviation price war", such as "0 ticket" or "1 per ticket." This low level of competition is completely contrary to the commercial laws of the market competition, price competition in this way also reflects the confusion in the aviation market and the aviation industry after the opening of business on the blind. A bit of a thought, that life and death like Rush with industry practices, not only fell into the plight of their own will, even as the Spring Airlines fined by the government and had as dismal end, what is more, this confusion led to the decline of the aviation industry will further damage the interests of ordinary consumers. Or it can be understood, it seems people to choose in the current air traffic, or had to pay expensive fees. After all, the cost of airline operations, including airport construction, aircraft purchase and maintenance, fuel, and staff wages, far higher than other modes of transport. If all airlines were involved in the "price war", or the chaos of competition under the supervision and without a strong regulatory mechanism, ticket prices below the cost of control lines, airlines can only be at a loss until the bankruptcy. On the other hand, even in order to maintain profits, or in some special part of cheap air tickets during the launch, which is not the economy through market means poor consumer access to these tickets, the worst may pay a higher ticket prices could have a high consumer groups, but also accounted for cheap special fares. This is not distinguish between the consequences of consumer groups, flight booking rate is too low, a large number of vacant seats, the implementation of these so-called strategy of the company is also a corresponding increase in cost, and finally a blind toss. Obviously, "the earlier book, the more discount," the use of the ticket pricing model to "price discrimination" means to break the operation of the plight of the aviation industry. Early booking and the choice of these special fares to consumers, they are not always fly in groups, the larger the elasticity of demand for tickets, select the travel modes, if the ticket is too high, likely a deterrent, and not hesitate to choose other modes of transport. More importantly, the ticket prices and booking time to market combined to solve on an Air Operator's a major problem - by the consumer groups, this group is divided so that the demand for and supply of tickets to a market equilibrium and optimizing the allocation of resources to achieve maximum benefits. Introduction of a good period of time in the planning of special fares, the airline ticket reservations can pay close attention to the situation, always adjust the ticket discount. Book votes the faster growth and increased the proportion of the more discount tickets, special ticket that is booked at the time, the tickets more expensive, leading to ticket price. Complex pricing models do not seem to very easily put a distinction between consumer groups, low consumption power can book tickets in advance as possible time, get more discount. A certain level of spending power, and have frequent business dealings of the group is generally stable aircraft passengers, who choose to travel less space, so it became a balanced ticket prices to protect profits of the main air operators. In contrast, the time cost of the latter group is relatively high, probably an hour into the former may create several times the value of their re-election because of ticket prices higher and the cost of other modes of transport may be higher, particularly in an important business activities. Anyway, each flight is the same fixed costs, including fuel, maintenance, and staff wages, and consumer groups to distinguish between scheduled time, even if the first booking of the passengers ticket prices below the cost control, This is still a profitable airline. Book flights in advance to distinguish between the consumer groups, reflecting the economics of "price discrimination theory," that all the tickets in time to divide, and then different groups of consumers willing to take the highest price sold, and ultimately gain maximization, and a virtuous circle.