02 Jan Consider three different
6.3 – Discussion: Pricing Strategies
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Consider three different flights: A Monday morning flight from Chicago (ORD) to New York (LGA) with very high demand by business passengers; a mid-morning flight from St. Louis (STL) to LAX with moderate demand from both business and leisure passengers; and a regional jet flight from Columbia, S.C (CAE) to Atlanta (ATL) with connections to all major cities on mainline jets (the RJ has cost per available seat mile twice that of mainline jets). The three applicable pricing models are peak pricing, 3rd degree price discrimination, and cross subsidization.
In this discussion forum, address the following:
Choose one flight and explain how one of the models applies to pricing.
Remember to respond to at least two of your peers’ postings. This is a graded activity due on the last day of the module. Review the Discussion Rubric to find out how to maximize your grade.
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