So what ABOUT those fuel surcharges?
"Ablang" wrote in message
...
Good News: Oil is dropping like a stone. Not So Good News: U.S.
airlines aren't dropping their fuel surcharges much at all, beyond
some cuts on international routes. And here's why: the airlines
don't have to drop fuel surcharges -- not as long as they can find
passengers willing to pay for them,
Well, duh. Welcome to Market Pricing 101. You ALWAYS
charge as much as the customers are willing to pay for a given
product or service. The name of the game is maximizing your
revenues/profites, and nothing else. Whether you wrap it all
up in a total price or break parts out and call them "fuel
surcharges" or some such is a marketing question, not an
economic one.
Bob M.
|