Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, REDUCE PERFORMANCE AND ITS COST
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE FUNCTION
CHOICE 3 COMPONENT: SET LIMITS ON THE USAGE OF THE PRODUCT
| No. | SIC | Year | Notes |
| 1 | 4512 | 2008 | The value of frequent flier miles has dropped so far that airline programs don't drive customer loyalty like they use to. Travelers use to get about two cents per mile in value from frequent-flier programs, but that has fallen to about 1.2 cents. Airlines have raised the price of awards and tightened the availability of the cheapest award levels, forcing travelers to jump to more-expensive mileage levels to claim seats. More miles in circulation (from sources including credit cards, car rentals, mortgages, etc.) make it harder for consumers to spend them on available seats. |
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