Home/Tag: elasticity of demand

Secret Reason for Airline Basic Economy Fares

Basic economy fares in the air travel industry and not primarily intended to compete with low-cost carriers or attract price-conscious consumers with elastic demands. The many restrictions on travel, luggage, cancellation fees are designed to make corporate travel agencies not even consider basic economy fares, and instead spend for [...]

Secret Reason for Airline Basic Economy Fares2020-05-09T16:56:34-04:00

How Elasticity Helps AirBnB Owners Make More Money

The Toronto Star reported on a startup called Beyond Pricing that is helping AirBnB owners increase revenues from their short-term rentals by figuring out the highest price they can charge. The company using a dynamic pricing algorithm like those used by airlines and hotels that raises prices when demand [...]

How Elasticity Helps AirBnB Owners Make More Money2020-05-09T10:55:29-04:00