“Prices are like chewing gum…

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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.

EVER.

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

One Response to “Prices are like chewing gum…

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

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