Question

Assuming that all of the demand realized was booked by two days before departure but the flight still had 25 empty seats, would you recommend doing anything different pricing or inventory-wise in the final two days?

Answer 1

Answer : Due to empty 25 seats of flight the flight company can sell the 25 flight tickets to 25 passangers. So, if the flight carry 25 empty seats then the flight company gets nothing for those 25 seats Now if the flight company give a special discount price for last two days before departure then people will buy more tickets in last two days. Because we know that when price fall then demand increase and vise versa. Because of lowering price the flight company will be able to sell the tickets of empty seats. To sell all empty seates' flight tickets the flight company can adopt a strategy. The strategy is that for the first day of final two days before departure the company can reduce the ticket price by giving a particular discount rate. After this discount if all tickets are sold then this is good but if not then the company can give more discount on tickets for last day before departure. As a result, all flight tickets will be sold. It is better to sell all remaining 25 empty seats' tickets at lower price and carrying passengers than carrying  25 empty seats. So, I will recommend to flight company to adopt the above described pricing strategy to sell the empty 25 seats' flight tickets for final two days before departure.