American 188bet Online Sports Betting and Casino and United 188bet Online Sports Betting and Casino will eliminate change fees for overseas flights

Big Traffic Author of this article: Civil Aviation Resources Network 2020-11-21
The essence of change fees,This is the opportunity cost of 188bet Online Sports Betting and Casino considering “not being able to sell before taking off”。

According to Reuters,United and American 188bet Online Sports Betting and Casino said Thursday,They are eliminating change fees for international long-haul flights。

American 188bet Online Sports Betting and Casino said,For all long-haul international flights originating from North or South America,Change fees for all classes except basic economy class will be cancelled,Effective immediately。

And United said,It will announce an extension of 188bet Online Sports Betting and Casino waivers for basic economy and international tickets later this year,"To continue to provide greater flexibility to all passengers traveling with us。”

Earlier,Both 188bet Online Sports Betting and Casino stated,Due to the recent surge in COVID-19 cases in the United States,Flight bookings have declined。

Previously the end of August,The three major U.S. 188bet Online Sports Betting and Casino have successively announced the permanent cancellation of domestic flight change fees。However,The new policies for rebooking of the three major US 188bet Online Sports Betting and Casino do not cover basic economy class tickets。This is to allow passengers to choose by themselves,Choose the lowest price but there is a change fee、Or choose a ticket with a higher price but no change fee。

In 2019,Change fee revenue accounts for approximately 2% to 3% of U.S. 188bet Online Sports Betting and Casino’ total revenue,But analysts said,As people still focus on generating bookings,Therefore the overall financial impact in the future will be limited。According to U.S. Department of Transportation,Delta 188bet Online Sports Betting and Casino charged 8 last year.0 million in ticket cancellation and change fees,American 188bet Online Sports Betting and Casino charged 8.USD 1.9 billion,United 188bet Online Sports Betting and Casino charged 6.USD 2.5 billion。

2019,U.S. industry-wide change fees net 188bet Online Sports Betting and Casino .8 billion。Removal of lucrative change fees highlighted,The balance of power between 188bet Online Sports Betting and Casino and passengers is now firmly in the hands of passengers。Philip Baggaley, chief credit analyst for 188bet Online Sports Betting and Casino at Standard & Poor's, pointed out,This doesn’t happen often。

Due to the impact of the pandemic on the aviation industry,U.S. 188bet Online Sports Betting and Casino lose millions of dollars every day,Airline passenger revenue is only about 30% of what it was before the epidemic,This forces 188bet Online Sports Betting and Casino to introduce policies that are more beneficial to passengers,To encourage people to start traveling again。

Li Hanming, an expert on the Civil Aviation Resource Network, pointed out,The essence of change fees,It is a measure of "the seat cost caused by passenger changes",This is the opportunity cost of 188bet Online Sports Betting and Casino considering “not being able to sell before taking off”。If this opportunity cost could be included in the fare,Then it is feasible to waive the refund fee。This cost is on different routes、Different ticket sales times、Even different ticket buyers,They should all be different。The existing "change fee" system is a static extra-price fee,In today’s big data era,No longer adapts to the development of the times。Dynamic change fee、Price internalization (integration into fares) is actually an application of "dynamic pricing" theory,Dynamic pricing is an inevitable trend in the global aviation industry。However, the details of this general trend will be different in various regions。

Li Hanming estimates,European and Chinese 188bet Online Sports Betting and Casino will not follow suit for the time being。Due to the lack of alternative long-distance transportation tools such as high-speed rail in the United States,The U.S. airline industry therefore lacks external competition,The competition among 188bet Online Sports Betting and Casino,Presenting【Internal fierceness】,The situation of external monopoly;China and Europe have high-speed railways,Second, 188bet Online Sports Betting and Casino maintain their own hubs,So the competition is between 188bet Online Sports Betting and Casino and high-speed railways,Present [internal monopoly,The fierce external situation。

Canceling the 188bet Online Sports Betting and Casino will of course have some impact on the ticket price,The main performance is that the fare curve will change with real-time demand。As for whether it is rising or falling,It’s really unpredictable,Unknown。

*this文来Source: Civil Aviation Resources Network, original title:Continue to add more!American 188bet Online Sports Betting and Casino and United 188bet Online Sports Betting and Casino will eliminate change fees for overseas flights》.

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