Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: PUBLIC RELATIONS SEGMENT
CHOICE 3 COMPONENT: WAIVE, OR MAKE A ONE TIME OR PERIODIC PAYMENT, TO COVER SOME COSTS OF THE CUSTOMER
| No. | SIC | Year | Notes |
| 1 | 4512 | 2005 | Independence Air's fare, $79 one way or $100 with all the taxes from the Bay Area to Dulles was irresistible. And it made a startling promise to customers: "If your checked bag doesn't arrive at your final destination when you do, your flight is on us." |
| 2 | 4512 | 2009 | JetBlue Airways Corp. said it will give full ticket refunds to eligible passengers who booked and paid for flights and then were involuntarily laid off from their full-time jobs. The discount carrier said it initially will offer the program for U.S.-originating travel booked between Feb. 1 and June 1, but that could be extended. Jet Blue said a low-fare U.K. regional carrier, Flybe, recently announced a similar policy. JetBlue said that if the person is listed on the itinerary and personally paid for the ticket, he or she can apply for a refund no less than 14 days before the scheduled departure of the outbound flight. Normally, JetBlue tickets are nonrefundable, and passengers are assessed a $100 change fee to use the remaining ticket credit for a new trip. The program excludes group bookings and flights purchased with frequent-flier points, among other things. |
| 3 | 4724 | 2008 | Orbitz Worldwide Inc. has launched a policy, called Price Assurance, to reimburse some customers who buy airline tickets and then see the price of those seats fall. The company plans to refund customers the difference in fare, if the difference is between $5 and $250. The program may reach just a small slice of customers: travelers will be reimbursed only if another customer later purchases the same flight and snares a cheaper fare. Orbitz says it continues tracking until the day of the customer's flight, so each time the price drops and another customer books, the refund amount will increase. The refund check will be sent about 30 days after the trip is complete. Orbitz program is different than previous refund programs in that it refunds the customer automatically (the customer doesn't have to go back and look for his or herself) |
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