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Hidden City Ticketing: An Unintended Consequence

   

Added on  2019-09-22

5 Pages990 Words316 Views
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ASSIGNMENT[Document subtitle]
Hidden City Ticketing: An Unintended Consequence_1

1When the passenger disembarks the flight indirectly at the node of the connection, then it gives rise to the hidden city ticketing. Fares of the flight are related to the forces of the market and doesn’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 is required 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 airlines don't price depending on the cost whereas, they price depending on the demand. And the customers 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 it upsets the overall balance in the aviation industry (Wang, Z., & Ye, Y. 2015). Therefore, the passengers with high dollars become the passengers with low dollars and the generated revenue of that airplane drops. Earlier, very few people were doing this, and this wasn't upsetting the balance of the aviation industry but nowadays, websites are making it easy for the customers to provide 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 for the carriers of the low cost, but it has become an issue for the carriers which offers incredible schedules in the various markets.The economic reason for the existence of these types of tickets is that the pricing of the airfare is very complicated and frequently an airline gets the choice of running various segments by occurring loss as the airlines offer discounting seats or even the company occurs much bigger loss even when to fly with the vacant seats with higher fares. The companies want to get the planes on the same track like before and even in a profitable and sustainable competitive position
Hidden City Ticketing: An Unintended Consequence_2

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