airlines have recently intensified

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airlines have recently intensified

by vishalwin » Mon Sep 21, 2015 8:39 am
Several airlines have recently intensified their fierce competition for business by offering tickets, that if purchased 2 days in advance, cost as much as 40% less than the heretofore lowest-priced "super-saver" tickets, which require a 30day advance purchase. The airline's long-term gains from tickets bought under this new plan will be enourmous bc unlike earlier discount tickets, these are not refundable. The author assumes which of the following about discounted airline tickets in predicting long-term gains in airline revenue?

A. More discounted, advance purchase tickets are purchased than are actually used.

B. Tickets requring 30day advance purchase are not profitable for airlines.

C.Few business travelers have taken advance of 30day advance purchase tickets

D. Airlines will have to discontinue offering 30day advance purchase tickets when they begin offering 2-day advance purchase tickets.

E. The majority of the 2 day advance purchase tickets offered by a given airline will be sold to passengers who have not previous flown on that airline.



in option A, what does purchased than actually used means?

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by Jim@StratusPrep » Mon Sep 21, 2015 12:45 pm
A greater number of people buy the discounted ticket than use the ticket.

In specific numbers, 10 people buy the ticket, but only 6 actually use it.
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by vishalwin » Wed Sep 23, 2015 6:00 am
Hello Jim,

Thanks for replying.

Can you please explain how A is OA here.

How does it matter whether people used it or not,... I mean it doesn't matter here because people can't return it So, the point that they used their ticket seems irrelevant.