“Prices are like chewing gum…

Once they’re stuck to the floor, it’s difficult to get them off”

In a previous life, I did revenue management and pricing for airlines(rather successfully, by all accounts, given that Air New Zealand once offered me a senior role in their RM organisation).

I thought I was seeing things when I saw this fare display on airnz.com a month or so back

They’re actually offering their PREMIUM economy product CHEAPER than their STANDARD product?

There’s one clear rule in this scenario: don’t EVER do it.

You can ask people at check-in if they’d like to upgrade for $200/$100 or you can select from loyalty program profiles and upgrade for free.

But don’t EVER tell customers that your premium product is worth less than your standard product.


This entry was posted in Bloody hell, Brain farts, Economics, WTF. Bookmark the permalink.

1 Response to “Prices are like chewing gum…

  1. Yep. As an ex Qantas staff member I couldn’t agree more.

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