07 March 2011

Allegiant's Answer To Rising Oil Pricess - Flexible Fares

Allegiant has a new wrinkle on the whole pricing thing.

Dealing with different pricing models has proved to be difficult for everyone. Most of all the new pricing models dont give you exactly what you want to know.

IE what is the minimum price. Since the nice people who write laws are happy to pursue people who transgress rather than writing sensible laws... no one seems to be dealing with the problem correctly.

Other markets that have complicated products have the same issue and create a pricing model that is clear. Cars do it ... even educated houses do it. My answer would be for someone to state what a minimum price really means. IE what is the price you could get on a plane for. Then there is the equivalent "nicely equipped price" model.

Getting back to Allegiant - the plucky travel company that has planes, their idea is to let you pay for a ticket in the usual format but also to enter into a risk contract with the airline betting if the price will go up or down.

Its a good idea and someone should really look into it.

Anyway read the article from the WSJ.

And Y'all hurry back now d'ya hear!

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