ab reviewer#4

• Because the no-show behavior of passengers on future flights is unpredictable, there is an element of risk involved in accepting more reservations than physical capacity

• There are others who are willing to pay if the price is low.

• Airlines play around the consumer's willingness to trade-off between high priced fares (which has high levels of service offerings and flexibility) and the lower-priced fares (which is restricted and level of service offerings not as high).

• Based on consumers "willingness to pay".

• loss of revenue from seat that departed empty

Free travel voucher

voluntary denied boarding

if not enough reservations are accepted and the no-show is greater than expected by the airline, there are cost associated for the lost revenue for empty seats known as

• Meal & hotel cost

t the high end of the fare structure, the airline should offer enhanced service amenities that improve the attractiveness of the fare products to travelers who are not price sensitive and willing to pay for these amenities.