Price Discrimination In Airlines Essay

1037 WordsMay 4, 20125 Pages
In many cases we run into industries that charge various customers different values for an identical good. These industries find that they intensify their revenues by using this method. Those industries that abide by this structure of making money have participated in price discrimintation. When you are boarding a flight im sure you know that the passengers around you have not paid the same price as you. Is price discrimination suitable or unsuitable for these airline passengers? While still analyzing your surroundings on the plane im sure you may come to realize that there may be some passengers who have paid up to five times as much as you. This is sometimes based on the date the ticket is purchased. So does price discrimination increase or decrease in a competitive market? Lets take a closer look at the discrimination that has taken place in these airline industries. Price discrimination is based on the charging of various values to different consumers. When looking at the article published by E Turbo the author has come to the conclusion that, “The seller does have some control over the price, buyers have different price elasticity’s of demand, and resale of the ticket by the buyer is not possible” (Airline Industry Ideal for Price Discrimination) Thus each ticket can be sold at a different rate. Each and every ticket that is sold through these airlines varies on a number of different reasons. Price depends on the day you decide to book, the way you choose to book, and when you book your flight. The article came up with a pretty nifty saying that ties into my question, “Is price discrimination suitable or unsuitable for airline passengers?” Being “nickle-and dimed”. I would agree that being “nickel-and-dimed” isn’t such a bad thing for the consumers. The consumer has the choice of self selection price discrimination. The consumer buys the best deal that they

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