Author: Rafi Mohammed

Several large airlines have recently begun to offer customers a lower-priced, basic economy fare option. At first blush, it’s difficult to see how a further degradation of airline service can enhance profits and attract customers. However, as the author reveals, this is actually a powerful pricing strategy. Rafi Mohammed is the founder of Culture of Profit LLC, and author of The 1% Windfall: How Successful Companies Use Profit to Profit and Grow. He can be reached at rafi@cultureofprofit.com. This article originally appeared on the Harvard Business Review (HBR.org).

The Pricing Advisor, March 2017

American Airlines and United …Read More