Thursday, April 15, 2004

High Season:

This concept goes like this: In Japan and Korea, most people take their vacations only at designated times, creating a crunch on the travel industry. The solution? travel costs double, triple and even quadruple the "low" season.

I am not much of an economist, but if you reduced the price, demand would increase, as more people take off-peak trips, more often. would this not be better that this gouging that goes on in summertime and around New Year?

In Japan there are heaps of old people and since flight bookings here average 65% in the low season, why not aim your ads at these pensioners? then they would not travel as much when the working world scrambles to book flights for their annual 3-4 day break.

Thus, low demand at peak times would prompt airlines to lower prices in line with lower demand.

Let me give you an example of the errors of this Hig/Low season policy.

A round trip ticket to Los Angeles from Osaka is around $400 in winter (low season) but goes to more than $1100 duing the summer high season. Which ticket would you prefer?

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