Question

g The round-trip business class airfare from Boston to Amsterdam (from August 18 through August 21) is $6,000. The round-trip business class airfare from Boston to Amsterdam to Athens and then returning to Boston (from August 18 through August 31) is $4,000. What is the most likely explanation for this price difference?

Answer 1

Answer:

The Boston-Amsterdam round-trip travelers are more likely to be on business, whereas the multi-city travelers going to Greece are likely to be on vacation, and therefore more price-sensitive.

Explanation:

The customers with more price- sensitivity are charge less than the customers with less price-sensitivity. multi-city travelers are more likely to be on a tour of cities and the Boston-Amsterdam travelers are likely to be on business.

Answer 2

Answer:

The reason for this is that aire company's have a roken demand

When the flights are for business people they have a lwoer price elasticity than tourist. In this case the Bston to Amsterdam, for reasons of times it is considered a business flight in the company's price policy thus, hiigher price.

While the other, as it has more days in the foreing country is considered tourist thus, a different price policy applied.

Explanation: