Therefore revenue will go up? You skipped over the part where you assume total number of tickets sold remains constant.Art at ISP said:They keep talking about rationalizing the fare structure, yet it has not been done. I am driving to Boston tomorrow because I can't justify the amount of money they want for me to fly. I have spoken directly to senior management on this issue, and they have as much as admitted they can rationalize the fares but they are basically afraid to. They can't think outside the box--yes they will lose the gravy run fares (which more and more of us are refusing to pay by the way), but with RATIONAL fares they will notice as other airlines have, that AVERAGE fares will go up, therefore overall revenue will go up.
Tell me which is greater:
100 tickets times $200 average fare
75 tickets times $250 average fare