This week’s featured link:
Why ‘dynamic’ pricing based on real-time supply and demand is rapidly spreading – Los Angeles Times
It has taken a long time, but other industries are starting to see value in the model airlines use to set pricing. That means you’re going to see a lot more variability in the future.
This story was spurred by the announcement that Disney parks would introduce variable pricing where admission is higher on peak days than on off-peak or regular days. Though the article calls it “dynamic” or “surge” pricing, it’s not. These prices are set based on historical demand data in advance, so people can plan appropriately. Dynamic pricing responds to consumer demand in real time. So when Coke started charging more in some vending machines on a hot day, that’s dynamic pricing. (It also blew up in their faces, but that could be blamed on implementation.) And when Uber charges more when demand is high or supply is low, that’s real surge pricing.
The idea in general makes sense, but implementation is always the key.
Two for the road:
United Airlines Nears Flight Attendants Deal After CEO Munoz Steps In – TheStreet
United’s flight attendant leadership seems pretty upbeat these days now that there’s a new CEO in town. They expect to have a new deal soon that would finally integrate the Continental and United sides into one. But while the AFA’s leader on the United side seems to think the CEO was the only problem, it’s not. There are other integration issues that make this the most challenging of all the groups to integrate by far. I continue to do research and talk to people about this, and it may end up in a longer post… if there is no contract soon.
Norwegian CEO outlines ambitious Gatwick plans – Business Traveller
Think Norwegian is crazy? This isn’t going to change your mind. The airline wants to base 150 airplanes at Gatwick if a new runway is built. Is this just bluster to help get a new runway? Maybe. But it’s also probably calculated since it’s not going to happen.