Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE, REDUCE PERFORMANCE AND ITS COST

CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE FUNCTION

CHOICE 3 COMPONENT: SET LIMITS ON THE USAGE OF THE PRODUCT

No. SIC Year Notes
1 4512 2008 The value of frequent flier miles has dropped so far that airline programs don't drive customer loyalty like they use to. Travelers use to get about two cents per mile in value from frequent-flier programs, but that has fallen to about 1.2 cents. Airlines have raised the price of awards and tightened the availability of the cheapest award levels, forcing travelers to jump to more-expensive mileage levels to claim seats. More miles in circulation (from sources including credit cards, car rentals, mortgages, etc.) make it harder for consumers to spend them on available seats.

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