Question

It’s common for passengers seated in coach class to pay vastly different fares for travel on...

It’s common for passengers seated in coach class to pay vastly different fares for travel on the same flight. Why do airlines have such complex pricing structures?

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Homework Answers

Answer #1

We have different section sof seating arrangements in airlines and all these are priced differently according to th efacilities they provide. The airlines maintains this difference in fares because if they provide luxury also at same fare the demand will be more and they cannot provide the facilities promised at such l;ow prices. They need to meet the demand of customers in service and for that they will need investment for those facilities and hence they charge highly . Hence they maintain such complext pricing structures.

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