5 ms·

Yeah... Problem is they control supply as well. I would agree with the conclusion only if I would fly business destinations only. As it stands right now, I have

by tandr 5y ago

Yeah... Problem is they control supply as well. I would agree with the conclusion only if I would fly business destinations only. As it stands right now, I have to buy tickets to Mexico 6-8 months in advance, with no right to cancel them, even if life has other plans all of a sudden.

mdavis6890 5y ago
Someone has to take the risk that life happens. You can take that risk (non-refundable) or you can pay the airline a higher price to take that risk (refundable).
- blunte 5y ago
  But is the extra cost you pay (for that risk) fair relative to the risk of revenue loss for the airlines? I highly doubt that. This is an industry that has a history of ever-increasing executive pay rates with gradual reductions in service quality, gradual increases in incidental fees, frequent bankruptcies, and occasional governmental bail-outs.
  - ccalloway 5y ago
    It bears no relation to the risk of revenue loss for the airline. It is based on demand. An airline runs hundreds of flights a day, and it knows that a certain percentage are going to be less than full. It tries to optimize as best it can. You on the other hand are going to be seriously annoyed if you have to change your plans and you lose hundreds of dollars, maybe a significant proportion of the money you have for your trip. They are going to charge you based on the price you're willing to pay for peace of mind, far lower than the cost to them. After all, most people do use the plane tickets they have booked. The solution is to self-insure by having $1000, or whatever, ready for if you need it for increased travel costs or other emergencies. And try to avoid feeling either anger or regret if you have to change your plans. If you don't have a spare few hundred bucks then this method isn't available to you.
    - mirchiseth 5y ago
      Risk and insurance go hand in hand. +1 on self-insurance says the guy who is buying 22/23 season passes for skiing.
- mirchiseth 5y ago
  Thinking in terms of risk and who bears it is the right way to think. Thanks for bringing this up.

by tandr 5y ago

mdavis6890 5y ago

Someone has to take the risk that life happens. You can take that risk (non-refundable) or you can pay the airline a higher price to take that risk (refundable).

blunte 5y ago
But is the extra cost you pay (for that risk) fair relative to the risk of revenue loss for the airlines? I highly doubt that. This is an industry that has a history of ever-increasing executive pay rates with gradual reductions in service quality, gradual increases in incidental fees, frequent bankruptcies, and occasional governmental bail-outs.
- ccalloway 5y ago
  It bears no relation to the risk of revenue loss for the airline. It is based on demand. An airline runs hundreds of flights a day, and it knows that a certain percentage are going to be less than full. It tries to optimize as best it can. You on the other hand are going to be seriously annoyed if you have to change your plans and you lose hundreds of dollars, maybe a significant proportion of the money you have for your trip. They are going to charge you based on the price you're willing to pay for peace of mind, far lower than the cost to them. After all, most people do use the plane tickets they have booked. The solution is to self-insure by having $1000, or whatever, ready for if you need it for increased travel costs or other emergencies. And try to avoid feeling either anger or regret if you have to change your plans. If you don't have a spare few hundred bucks then this method isn't available to you.
  - mirchiseth 5y ago
    Risk and insurance go hand in hand. +1 on self-insurance says the guy who is buying 22/23 season passes for skiing.
mirchiseth 5y ago
Thinking in terms of risk and who bears it is the right way to think. Thanks for bringing this up.