I see you got as far as supply and demand in your economics course before you zoned out. Competition specifically 3 competitors has been shown to apply sufficient pressure to stop price gouging. Airlines profit margins are at 8% which indicates sufficient completion.
I doubt your profit margin per ticket includes over head costs. Is sounds like it’s mostly direct costs that are included. If your shop truly had a 70% profit margin the owner would be loaded, for every 100k you charge customers they would be taking home 70k in profit.
And free market capitalism also supports competition - if there’s a company that can do it for less, there will be, because people will spend less if they can.
How long have you been alive? If you’ve been an adult for ten or more years and haven’t noticed the degradation in quality of services, I don’t know what to tell you.
The glory days of air travel were before deregulation and they were much more expensive. Now they are cheap and as pleasurable as going on a bus. Actually prices have been going up significantly recently but the shitty conditions remain.
You want a good flight experience? No problem.
You want a good flight experience that is also cheap? No sir.
The airlines just cater to the market, if people were able and willing to pay double, things would be vastly better.
If people could pay double, things would cost double. Quality likely wouldn’t change.
Source for this hypothesis?
It’s called Free Market Capitalism. If the market can bear double the cost, the prices will rise to meet the level the market can bear.
I see you got as far as supply and demand in your economics course before you zoned out. Competition specifically 3 competitors has been shown to apply sufficient pressure to stop price gouging. Airlines profit margins are at 8% which indicates sufficient completion.
Too bad the regulations to support competition and disband oligarchies is so pathetically weak.
Incidentally, why is it that every gas station in town can fix their prices together? Isn’t price fixing supposed to be illegal?
There is not sufficient regulation to support the hypothesis of competition.
8% profit margin? That’s… Absolutely abysmal. How the heck do they stay afloat?
Not sure if you are being sarcastic and think 8% is huge or you are being sincere and think 8% is poor. 8% is average compared to other industries.
8% is tiny. Like, microscopic.
In my industry, if your Profit Margin per ticket is less than 70% for a long enough time, your gonna go under. (Automotive Repair)
I doubt your profit margin per ticket includes over head costs. Is sounds like it’s mostly direct costs that are included. If your shop truly had a 70% profit margin the owner would be loaded, for every 100k you charge customers they would be taking home 70k in profit.
And free market capitalism also supports competition - if there’s a company that can do it for less, there will be, because people will spend less if they can.
It works both ways mate
How long have you been alive? If you’ve been an adult for ten or more years and haven’t noticed the degradation in quality of services, I don’t know what to tell you.
Every streaming service.
That’s a super young market by airline standards, still settling in. Not comparable
The glory days of air travel were before deregulation and they were much more expensive. Now they are cheap and as pleasurable as going on a bus. Actually prices have been going up significantly recently but the shitty conditions remain.