Fare Rationalization

[Res]

Art...I agree someone needs to revamp our fares..we need to be more competitve....We can't afford to loose a single passenger, I don't understand why someone above us doesn't see it...in several markets DL is grabbing our passengers, their last minute fares are much lower...why are we sending passengers to OA...I wonder if our pricing department needs a refresher course...

 

[Art at ISP]

With all the talk about declining revenue and survival, I have to agree with those who say that management is missing the big picture here...the price model is broken, and severely. On one end they feel they have to compete dollar for dollar with the low cost carriers (WN, ATA, B6, etc.). They make up for it on the backs of those of us who make our plans at the last minute.
Case in point: I can fly from ISP to LAX via PHL, in a First Class seat for as little as $190 round trip, while a simple day trip ISP-PHL-ISP is well over $700. What''s wrong with this picture?????
Fair value should be the rule here...in my opinion (no expertise in pricing except I fly ALOT), the low end should be raised a little--I think that $300 to $350 r/t is a fair price for a leisure traveler with advance booking, and I think it should max out at about $800-900 r/t for an unrestricted ticket. $1900 is just somewhat ridiculous. The revenue you lose at the top is made up gradually by raising the low end.
There is no justification for a price of $722 r/t ISP-PHL whatsoever. MAX it should be around $300 r/t. This is the kind of gouging which alienates passengers. I can drive to the PHL area in about 3 hours from where I live. A best case flight will cut that in half even with security and lines at ISP. But for $700 I am driving--the time saving is just not worth it.
I admit to not having all the answers and being a little simplistic here, but tell me the truth--at least I think I am on the right track....
My thoughts are with all my friends who are affected by the latest round of downsizing. I wish nothing but the best to you--you are truly the best this industry has to offer.

 

[Dea Certe]

I absolutely agree our fares need to be rationalized. Lately, this is the biggest beef I hear from my pax. A few days ago, a pax told me he wasn't allowed to fly on USAirways by his corporate travel folks because of the new fare rules. Like most companies today, they are saving money where they can. I asked him to please write and tell our managment. I feel sure he will and hope others will do the same.

Just in case he's reading this board: Hi Ron! Great talking to you and hope to see you again! We'll keep those Heinekens cold for you.