"Totally Wired at 32,000 Feet: Airlines Set to Install E-Mail, Web Links for Use In Flight", WSJ October 24, 2002.
By offering "JetConnect" services at the low price of $6.00 for a flight, Continental seems to have shifted to an approach that aims to induce high- and low-demanders to purchases these services (Approach 2 in my terminology) rather than price very high to only attract high-demanders (Approach 1, such as charging $4.00 per minute on Airfone). Could airlines do better by offering a menu of choices (Approach 3)? What offerings and price points might you suggest?
[Categories: Airlines, Price Discrimination]
3:37:14 PM
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