[P]
[BLOCKQUOTE][BR]----------------[BR]On 11/19/2002 6:16:05 AM kirkpatrick wrote:
[P]TWA's experience showed people will go for the cheapest fare regardless. Even though some will choose AA for the room, that has to be balanced against the revenue lost when the plane is full and could have taken more people if it had more seats.[BR][BR]MK[/P]----------------[/BLOCKQUOTE]
[P][/P]With AA's new pricing test, it'll be interesting to see if the planes fill up. Because with a reasonable fare AND MRTC, my guess is that the decision will be a no brainer. Companies do shop for price, but if the price difference is less than a hundred bucks on an advance purchase fare, they don't tend to balk about the extra dollars, and might just book AA as a perk to their travelling employees. If that advance fare covers costs, it's a win/win. More importantly, with a reasonable unrestricted fare, AA stands to see thier planes really full. Sure, the could make more with more seats, but you've got something that differentiates AA from the others. I don't need to remind you that SWA planes have fewer seats than most of the others...and they still make money. Something to ponder.