1. Travel

Lessons from JetBlue in focus and accountability

If you ask the typical airline revenue manager to include bag fees in his objective of maximising passenger revenue, he is unlikely to do anything differently. He is forecasting demand for each flight for the next six to 12 months in $15-$50 fare increments – demand for $79 seats, demand for $99 seats, and so on – so an average revenue gain of $10-$15 from bag fees (50% probability x $25) doesn’t really change what he should do. He will continue to monitor demand, intervene when appropriate, and let the system allocate seats accordingly. Bag fees will be ‘gravy’.

Image: 
Article type: 
No Comments
Comments to: Lessons from JetBlue in focus and accountability

Trending Stories

Scope of Fashion Industry Fashion has consistently been recognised to push the limits. With new ideas and trends, fashion has a focus on the future. The fashion industry will see enormous innovation in the upcoming years as modern technology, and changing customer demands and trends will transform the industry. With such stimulation and competition, the […]
close

Log In

Or with username:

Forgot password?

Don't have an account? Register

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.

Login