The Washington Post recently published an interesting story about change fees and their impacts on customer behavior. Veritec’s President, Warren Lieberman, was interviewed regarding the impact of such fees on airline yield management systems. An airline representative quoted in the story notes that no-shows can negatively affect revenues. But, as noted by one passenger, when an airline collects a change fee on a nonrefundable ticket, it has an opportunity to resell the reservation and earn even greater revenues on heavily demanded flights. Food for thought: Would making the change fee a percentage of the ticket price, with a set maximum, be a better policy?
For the full article, click here: Spiraling Ticket Change Fees