Archive for the ‘bundling’ Category

Airlines Try New Pricing Moves

May 24

With high fixed costs and perishable products, airlines have long been the poster child for “yield management”, “revenue management”, and other sophisticated statistical methods for optimizing profit. Or minimizing losses. While travel is up, airlines are still looking for ways to maximize the return on their investment. One approach is to unbundle products and services [...]

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How Far to Unbundle?

Mar 4

Unbundling offerings can be a great way to increase revenue by charging people for what they value. Hotels are experts at this. They offer a room at a relatively low rate, then charge $10 for breakfast, $9.95 for internet access, and $4 for a bottle of water or a bag of peanuts in the minibar. [...]

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