LongIsland2004 said:
Requested Flight
Itinerary Total - US$ 994.20 Flight Fare Rules 1 adult at US$ 994.20
5:45am Depart New York, NY (LGA)
7:30am Arrive Charlotte, NC (CLT) Jul. 12
US Airways flight 805 View rules
8:15am Depart Charlotte, NC (CLT)
10:06am Arrive New York, NY (LGA) Jul. 15
US Airways flight 766
This is a perfect example of what I have been saying all along--there is no reason for such gouging. It is ridiculous.
For the record, I probably have not helped the situation because I have paid this fare before, but I had to be there at a certain time with no time to pre plan. I have also taken the connections because they are 1/3 the price. This is what makes no sense.
From a cost perspective--it's about 530 miles LGA-CLT. at 10 cents a seat mile CASM it costs $53.00 to transport one passenger that distance. I am sure there are or will be $99 fares in the market (or not since there's no competition per se).
If you start at $99 each way (for maybe 10 seats), you have a gross profit of about 50% (doubled your money). If you capped it at let's say $199 or even $249 for a walkup, your margins would still be outstanding. What's more you would see more fares sold in the higher range, meaning the AVERAGE comes up. If you do this systemwide, you will see that the AVERAGE RASM will grow, therefore you make MORE money.
AS did it and they make money. Airtran did it and they make money. HP did it and they make money (or close to it).
Ironically, the UA code share in the same class of service is $200 less!!!!
It has been admitted previously that if the bottom of the fare bucket could be raised by $20 the top could be lowered by $300. So why has it not been done?
I sound like a broken record, but US has the best employees in the business. While the leisure travelers are bargain hunting, I truly believe that MOST (not all but MOST) business travelers would be willing to pay a REASONABLE premium to fly US. The key is you have to offer more--you can't shrink to profitability.
My best to you all............