It’s summer. Vacation time. Whatever the reason - plane tickets or vacation vouchers might become a subject.
This is the time where " the economical slowdown" has played a trick on decision-making. Airline companies and travel agents have undermined the ground they are walking on by great discounts and if not in a great need, no one wants to purchase a plane ticket with a full price. Perhaps some emotional buyers, filthy rich people or those who have worked hard all year and do not want to get into the hurdle of price wars, they pay what it takes, but major amount of flyers around the world are waiting for the right price or the right offer. As vacation time is limited, this time might never come... to the destination you are dreaming about.
Millions of plane tickets unsold because of the wrong pricing - or the wrong mindset planted by the discounts. Who can tell the difference?
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as i've understood, there are two types of companies:
ReplyDelete1) those that understand that comfort and first class service are most important elements;
2) the others that have found their niche in best pricing.
and there will always be customers that value either one or another. each customer will find what is looking for or has to reconsider the destination :)
besides, the plain tickets are not the only things that might be unsold at the end of the day. there are millions of other goods that are left in shops and in boxes due to flawed positioning on the demand curve.
to sum it up -- basic economics!
Of course there are different target groups for Cathay Pacific and Ryanair, but the post in here is driven by the ones that have not kept the strategy they have built. Finnair for example …
ReplyDeleteAlthough millions of tickets are unsold, somehow lately most of the flights are fully booked. I guess there are many emotional buyers and filthy rich people around. And I'm one of them!
ReplyDeleteMargit, you fly private jets. You do not count :)
ReplyDeleteNot only the Finnair. I recently go the spam-letter from SAS claiming they have reduced prices for many flights. When I then checked out the prices they offered and compared them with the ones I had already bought, I received four times higher price from SAS...
ReplyDeleteI believe the question is not only the former strategy but in the strategy overall. If you raise the hopes for cheaper prices but cannot fulfil them -- then you're doomed.
I did find that SAS offers very luxurious intercontinental flights, but then they should stick to that. Obviously their strength is not in cheap flights they claim to have :)