Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS MAKING HIGHER THAN AVERAGE USE OF CAPACITY
CHOICE 3 COMPONENT: ADD AN EXTRA FEE ON TOP OF VARIABLE CHARGE
| No. | SIC | Year | Notes |
| 1 | 4512 | 1987 | On Continental's new reduced fare flights: until now passengers lost 50% of the ticket price if they canceled their trip on discount fares. Now 100%. |
| 2 | 4512 | 2002 | Major airlines are imposing new rules on nonrefundable tickets which are popular with business and budget travelers. The new rules vary from airline to airline but trends include a $100 standby fee. For cancellation, travelers must notify the airlines, immediately rebook and pay a $100 change fee, instead of having a credit. These changes are an attempt to convince business travelers to spring for more flexible refundable fares, unlikely because of the huge disparity in price. Low-fare airlines are expected to see a boost as their rules have not changed. |
| 3 | 4812 | 2002 | Some wireless companies have started charging airtime for previously free services. Sprint PCS charges customers airtime to check their minutes over the phone. T-Mobile and AT&T Wireless charge for airtime if a call rings for longer than 30 seconds. |
| 4 | 7514 | 2005 | In an effort to reduce the number of no-shows and the resulting financial loss, car-rental firms are introducing various techniques to ensure that customers claim their cars. Hertz is considering charging a cancellation fee for a specialty vehicle, such as an SUV in Aspen in the winter. |
| 5 | 7514 | 2005 | In an effort to reduce the number of no-shows and the resulting financial loss, car-rental firms are introducing various techniques to ensure that customers claim their cars. Budget Rent-a-Car levies a full day's rental fee for those who fail to cancel at least 24 hours in advance. |
| 6 | 7999 | 2009 | Inclusiveness. It's the fundamental idea behind why a cruise is a good value: Everything (lodging, meals, entertainment) is included in the fare. The concept has taken a beating over the years, however, eroding under relentlessly rising costs and fierce competition among cruise lines to keep the advertised price low. Several lines have begun offering "exclusive" areas of the ship – private poolside cabanas, exclusive lounges, adults-only "havens," – for a fee. Private cabanas on Holland America, for example, run $30-$75 per day, including refreshments and service. |
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