Airport expansion: Heathrow runway 3 and Gatwick runway 2 constitute shortlist
In message , at 21:38:54 on Tue, 17
Dec 2013, tim...... remarked:
You really don't understand yield management, do you?
Yes I do
But you don't.
It's about selling the highest priced fares to people who insist in
direct flights,
and the cheapest ones to people who book early
Completely orthogonal to the issues we are discussing.
then filling the remaining seats with people on feeders from nearby.
The result maximises revenue, even if some people get cheaper flights
as a result of agreeing to be those indirect passengers.
That's fine, but it's no reason to insist you need a hub so that you
can fill a plane that you have artificially made less full than it
might have been
More proof you don't understand yield management.
--
Roland Perry
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