Airline / Baggage Fees / Behavioral Economics / Consumer Behavior / jetBlue / Reference Price / Segmentation

Unbundling the Airline – Measuring Customer Utilities for freebies

The last experiment I conducted was on pricing freebies and how Airlines or any other marketer can improve their customers’ perception of unbundling pricing by focusing on the reference price. The logical next step in the unbundling research seemed to me to find out the relative value of the components of the monolith and what … Continue reading

Airline / Baggage Fees / Behavioral Economics / Classes of Service / Unbundling

Ryan Air Unbundling the In Flight Toilet – “Loodicrous?”

Ryan Air, the pioneer in unbundled airline travel and the first one to charge baggage fees, has come up with the plan for next level of airline unbundling:¬† unbundle the facilities and charge passengers a pound each time they want to go to, as the British would say loo. Times Online quotes Ryan Air CEO … Continue reading

Airlines / Baggage Fees / Behavioral Economics / Consumer Behavior / Economic Model / Unbundling / Uncategorized

Unbundling the Airline – Charging for Water, Coffee and Soda

In August 2008 US Airways unbundled its in-flight service and started charging for soft-drinks. It charged $2 for soda and bottled water and $1 for coffee and tea. After six months, US Airways decided to stop the practice. US Airways took pride in its unbundled pricing model. The service did bring in revenue according to … Continue reading

Behavioral Economics / Bundling / Classes of Service

The Pricing Story

This study has been focusing on unbundling, doing it as a strategy and not as a reaction to economic conditions. I recently read an article by author Seth Godin, who recommended changing the pricing schemes for certain services.¬† He recommends bundling for previously unbundled services and unbundling for some. One good example of unbundling that … Continue reading