Does the airline industry need a new price model?
Hi, Arturo, I think any business that expends substantial, *redundant* energies on analyzing supply and demand, should deeply consider the costs they incur as a result of conducting all that analysis. I suspect in many cases, such costs detract from both value and competitiveness. The airline industry comes to mind as a perfect example. I shudder to think how much cost they incur, and how much potential revenue they forfeit. as a result of their incessant price adjusting. You can probably surmise from my response, that I’m a strong advocate of activity-based-costing.
