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Old 19th Dec 2008, 18:37
  #3164 (permalink)  
davidjohnson6
 
Join Date: Sep 2008
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Ryanair new prices for drinks n food, euro/pound is now 1:1 crazy prices. Crew not happy the sales will drop and sales bonus
Economics says that for normal goods (e.g. cup of coffee on a flight), a rise in price leads to a fall in demand. However, an airline wishes to achieve maximum profit from the trolley over the duration of a flight - if sales were to halve for example, the overall profitability of in-flight sales also goes down. You could charge £100 for a cup of coffee, but if nobody buys it, you don't make any money !

I don't personally drink coffee, but am genuinely interested to know how much will FR punters pay for a cup of coffee, before they vote with their wallets. Is Starbucks air-side retail the limit, or will people on a 2-hour FR flight spend more than that ?

Answers on a postcard...
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