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Question: demand elasticities and airline pricing roundtrip airfares are substantially lower...

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Demand Elasticities and Airline Pricing Round-trip airfares are substantially lower if the traveler stays over a Saturday night. The typical traveler who stays over a Saturday night is a tourist. Airline companies do not offer comparable discounts to travelers who complete the round-trip midweek. These customers are primarily business travelers. Airline companies also offer fewer discounts during peak periods, such as the period around the Thanksgiving holiday. Use what you learn in this week to evaluate the pricing strategy of airline companies.

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