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Alaska Revamps Fares

Alaska Airlines announced that it is simplifying its fare structure, reducing the number of fares it offers on a given flight to 6 (first class, unrestricted coach, 3-day coach, 7 day coach, 14 day coach, 21 day coach). More importantly, they’ve eliminated the Saturday-night stay requirement. This is a great step toward a more reasonable fare structure rather than what their head of marketing calls, “a random and lame-brained fare generator.” Exactly.

I’d also like to give credit where it’s due to America West, who is responsible for forcing larger carriers to wake up to the fact that their fare structures are insane. Alaska has been a trend-setter in many ways, and, while they say that they will take a short-term revenue hit, this will benefit them in the long-run, as it has for America West.

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  1. When will the other carriers learn and start to simplify their fare structures? Are there moves afoot to simplify things, or is “revenue management” far too entrenched?

  2. Both. All airlines are kinda sorta somewhat a little looking at revamping their fare structures. But, they believe so strongly in yield management (and the years and years of research into yield management software and modeling), they will have to have their fare structures pried from their cold, dead hands.