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If I were building a model, I would estimate my customers average hourly income and figure that is how to calculate break even in a time vs money calculation fo
by forkandwait 9y ago
If I were building a model, I would estimate my customers average hourly income and figure that is how to calculate break even in a time vs money calculation for a flight. I make 60 an hour (low for regular flyers I bet), a flight change adds 4 hours, so a $240 cost difference for each direct flight is realistic. That might turn into real money if you scale it.
- Gibbon1 9y agoI have a suspicion which is you are right, ticket prices don't capture full cost. Especially for business passengers. Problem with the spoke and hub model is passengers not only decide on whether to fly based on price but on psychological stress[1]. When that gets too high they won't fly no matter what the price is. Airlines probably make more money if they _all_ charge more for lower stress flights. [1] More stress means business travelers need more down time after flights, which lowers productivity and moral. Long stressful flights impacts the quality of vacation travel.
- kelnos 9y agoPeople don't actually value things that way, because people don't work for a wage every hour they aren't doing something else. This kind of calculation comes up all the time when people are trying to "value their time", but the reality is quite different.