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There is a fix for this. Charge the max services fee on top of ticket price and credit back for services not used. Didn’t bring a check-in? Here is $50. Not gon
by riantogo 7y ago
There is a fix for this. Charge the max services fee on top of ticket price and credit back for services not used. Didn’t bring a check-in? Here is $50. Not gonna eat? Keep this $20. Suddenly now they are not nickel-and-diming. They are handing out money.
- leetcrew 7y agoI'm not sure the psychology works out that way. price sensitive customers probably don't want to let you hold onto an extra $75 of their cash from the time they make the reservation until they actually fly.
- gruez 7y agoTime value of money of a $200 plane ticket at federal funds rate (for half a year) is like what, $1.5?
- leetcrew 7y agoit's not about the lost opportunity to make an investment so much as tightening the margin for stuff like paying rent, utilities, and credit card bills. $75 isn't enough to make or break my budget, but it's still a lot to have tied up over a service I'm planning not to use. if you're the type of person to aggressively optimize travel for price, it could be a meaningful sum.
- glofish 7y agoPlus it is well established that we are less price-sensitive once the money left our pocket. Most people would end up using more services. Hence even instinctively feels like a much worse deal even if tying up that money would not impact them directly.
- glofish 7y agoYou are thinking about this backwards. What people love is that the initial price is LOW. They all hope that this will be the final cost. They don't even want to think about paying more. Getting refunds stinks, frankly. All it takes is a single hiccup to turn into a PR nightmare: "Old lady getting kicked out of her apartment because the airline did not process the refund in time."