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Old 8th Oct 2009, 01:17
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SenatorGA
 
Join Date: Aug 2007
Location: Canberra
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GG

I agree with your comments to a certain extent with regards airline pricing and subsequent small margins that follow as a result.

However, in reagrds to:

[QUOTE] "You don't see a train or bus ticket changing prices everyday?"

IMHO I cannot see this ever being possible whilst there is a significant competition in the market place. There is generally speaking only one train operator that services their routes as well as one bus company that services Government contracted routes. Therefore, they have the luxury of charging a set fee and making set margins. These modes of transport can predict their costs with greater accuracy and may not be subject to to the same dramatic fluctuations in fuel and maintenance costs that an airline is.

It would seem then for an airline to contend in a market place with signficant competition and a requirement to get punters on seats they would have to do all sorts of creative things with their pricing models.

That is a very basic look at it as I am sure managing the pricing of an airline would be a very complex business, especially in these times, whilst I would imagine that bus and train operators would do very well.
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