Thursday 2 October 2008

Why do theatres discount prices on square tickets just before a performance whereas airlines and rail companies raise prices for last minute customers


Get the last tickets for a film at the cinema is quite different from getting a ticket for a flight at last minutes. Who is buying tickets at last minutes for a film ?. Some of them are people who dont have the plan to see that film, so that if the price of the tickets reduce, the demand for the tickets will increase, and the theatre will get more profit. Or customers who buy those tickets may be lated, and they dont want to miss any scenes of the film, so they may tend to wait for another times to watch this film. This is many substitues for this situation (restaurent, or cofee).

But the customers who buy last tickets for a flight is different. People usually buy tickets before a week at least, so that people who want to buy tickets last minute before the flight is very need it. Some bussiness man can buy it with any price for being on time at a conference. It makes the price of flight tickets become inelastic. So of course, the flight company will increase the price of tickets to earn more profit in this situation.

1 comment:

Shazmin said...

At last!

Now do one or two every single day!