2. assignment. [Document subtitle]. When the passenger

Added on - 22 Sep 2019

  • 5


  • 990


  • 96


  • 0


Trusted by +2 million users,
assist thousands of students everyday
Showing pages 1 to 2 of 5 pages
ASSIGNMENT[Document subtitle]
1When the passenger disembarks the flight indirectly at the node of the connection, then it givesrise to the hidden city ticketing.Fares of the flight are related to the forces of the market anddoesn’t correlate to the distance every time. For example, the flight between the point A and C,the node of the connection is B, may be cheaper than the flights between A and B. Then it isrequired to purchase a ticket from A to C which disembarks the node of the connection i.e. B andthe remaining segment is further discarded i.e. B to C.The airline companies don't allow hidden city ticketing to the customers because the airlinesdon't price depending on the cost whereas, they price depending on the demand. And thecustomers pay for the convenience of a nonstop flight through a connection node. The companiesdon't allow the hidden city ticketing because some of the passengers take advantage of it and itupsets the overall balance in the aviation industry (Wang, Z., & Ye, Y. 2015). Therefore, thepassengers with high dollars become the passengers with low dollars and the generated revenueof that airplane drops. Earlier, very few people were doing this, and this wasn't upsetting thebalance of the aviation industry but nowadays, websites are making it easy for the customers toprovide the option of hidden city ticketing and this is adversely impacting the aviation industry.Further, it has become a real problem for the aviation industry . Therefore, it is not an issue forthe carriers of the low cost, but it has become an issue for the carriers which offers incredibleschedules in the various markets.The economic reason for the existence of these types of tickets is that the pricing of the airfare isvery complicated and frequently an airline gets the choice of running various segments byoccurring loss as the airlines offer discounting seats or even the company occurs much biggerloss even when to fly with the vacant seats with higher fares. The companies want to get theplanes on the same track like before and even in a profitable and sustainable competitive position
You’re reading a preview
Preview Documents

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document