Prepare for Rush Hours at the Airport

The airport is about to get even more fun.

The Wall Street Journal reported on Thursday that American Airlines would be reverting to an older model of “peak” scheduling in an effort to bump up its revenue. By grouping flights into select high-traffic hours, the airline expects to increase the number of connections available to customers and its chance of filling its planes. Robert Isom, American’s chief operating officer, projected that re-peaking schedules at hubs will add $200 million in revenue a year.

Communicating Value and Price

Adapted from Nagle, Hogan, and Zale’s The Strategy and Tactics of Pricing, 5th Ed., Chapter 4

Value-based pricing strategies fail unless potential customers recognize and understand the value of your products and services and how they differ from those of your competitors. Clear value and price communication can protect your value proposition from competitive encroachment, improve willingness-to-pay, and increase the likelihood of purchase. Effective messages cater to both different types of products and different stages of the buying process.

Everlasting Light Bulb

Adapted from CIP, p. 84-85:

GE has invented a new light bulb that never burns out.  It could burn for more than 500 years and it would never blink.  The director of marketing calls you into her office and asks, “How would you price this?”  What do you tell her?