An airline selling some seats at lower fares to compete with low-cost carriers is an example of?
A) Yield management
B) Capacity underutilization
C) Monopolistic behavior
D) Capacity matching

Question

Quizplus · Accepted Answer

Yield management is the practice of varying prices for a product based on demand in order to maximize revenue. In this case, the airline is lowering the fares for some seats to compete with low-cost carriers and attract more customers while also potentially increasing revenue through other fare classes.

An Airline Selling Some Seats at Lower Fares to Compete