Explain how each of the following restrictions used by airlines tends to sort its customers into business and leisure travelers Advance purchase requirements which require purchase
Airlines practice price discrimination by charging business travelers and leisure travelers a differ Show more Airlines practice price discrimination by charging business travelers and leisure travelers a different price. Different customers pay varying prices for essentially the same coach seat because some passengers qualify for discounts and others do not. These discounts can be substantial in many cases so that some customers who qualify for discounts will be paying a significantly lower airfare. a. Which group of customers tend to pay the higher airfare: business travelers or leisure travelers? Why b.Why would business travelers tend to have a different elasticity of demand than leisure travelers? Is the more elastic submarket paying the lower or higher price? Is this consistent with an attempt to maximize revenues? Explain. Airlines might rely on a variety of restrictions in order to enable its customers to qualify for the discounts. These restrictions in effect roughly sort flyers into business travelers and leisure travelers c.Explain how each of the following restrictions used by airlines tends to sort its customers into business and leisure travelers Advance purchase requirements which require purchase at least 21 days in advance Weekend stay requirements which require that travelers stay over a Saturday night Time of day restrictions which disallow discounts during peak times of the day or during certain days of the week d.In each of these cases which group of customers (business or leisure) effectively pays a higher price? Is this consistent with profit maximization? Why? Show less
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper NowPLACE THIS ORDER OR A SIMILAR ORDER WITH BEST NURSING TUTORS TODAY AND GET AN AMAZING DISCOUNT
The post Explain how each of the following restrictions used by airlines tends to sort its customers into business and leisure travelers Advance purchase requirements which require purchase appeared first on BEST NURSING TUTORS .
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!
NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
