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  • Value Pricing on Airlines

Business Strategy

15 Mar 2006

Value Pricing on Airlines

  • By Bill Conerly
  • In Business Strategy

Northwest Airlines is going to start charging premium prices for exit row seats and for aisle seats.  Although I dislike the complexity of airline pricing, it does make sense to price up for a valuable product in high demand.  It’s no secret that aisle seats are favored; has anyone traveling alone EVER requested the middle seat?  (A gate attendant once called it "the friendship seat," because you can make friends on either side of you.  How sweet.)

The effect of this will be great.  I, the business traveler, will be able to pay up to get the aisle seat I once.  (Notice to clients: if you won’t pay a few bucks more so that I can sit on the aisle, don’t ask me to travel.)  And those people who are very price sensitve can save a some money by sitting uncomfortably.

Business implication: price up for high value, price down for low value.

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