Pricing Reaction from The Hub

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Aug 22, 2002
[Duplicate Thread Closed]Pricing Reaction
US Airways’ announcement on Aug. 27 of changes in pricing policies, particularly those applying to non-refundable fares, was covered heavily in the national media and in hub cities.
Most of the stories keyed on the theme that the changes will make clearer the distinctions between unrestricted fares favored by business travelers and non-refundable leisure fares.
“The moves were part of a you-get-what-you-pay-for pricing program geared to appease business travelers who have long complained that they are paying top dollar while those who pay much less get virtually the same privileges and service,” the Pittsburgh Post-Gazette reported.
Under the new policy, non-refundable advance-purchase fares must be used for a specifically ticketed flight and will have no value once the flight has departed. Changes to itineraries, however, may be made in advance subject to certain restrictions and fees.
Some observers voiced criticism. Kevin Mitchell, director of the Business Travel Coalition, said the changes would do little to woo business travelers because they don’t deal with the “sky-high rise in business fares” over the last few years, nor do they address the “hassle factor” of increased security procedures in airports.
Others quoted by the media, however, said the changes are necessary. “It looks like the airlines are in the preliminary stages of really reconfiguring their prices,” Cheryl Hutchinson, president of the Association of Corporate Travel Executives, told the Philadelphia Inquirer.
Hal Rosenbluth, chairman of Rosenbluth International travel agency, told the newspaper the rule changes were going to cost businesses money, but were probably necessary. “They need a business plan that shows what they’re doing on the revenue side to get back to profitability,” he said.
And Tom Parson of, told the Post-Gazette the ticketing changes show US Airways has “awakened to the realities of the marketplace.” He said the new rules “are not outrageous, just smart business. They’re taking care of the guys who’ve taken care of them.”
Last updated: August 28, 2002[:bigsmile:]
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