Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: PRICE THE SAME, REDUCE PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WITH HIGH SERVICING COSTS
CHOICE 3 COMPONENT: ADD AN EXTRA FEE ON TOP OF VARIABLE CHARGE
No. | Industry SIC | Year | Notes |
1 | 4512 | 2009 | Spirit Airlines, an ultra-low-cost carrier that has pioneered many fees, says it started charging for the privilege of buying a ticket anyplace other than at Spirit's airport ticket counters. Rival airlines aren't expected to follow Spirit's new fee, unless it proves to be a successful revenue generator. Most airlines already charge to book through telephone reservation center and will be watching closely to see if consumers acquiesce to broader booking fees. |
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