Word: extras
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...question is whether it's better to pass on that cost via a baggage surcharge, rather than a ticket price hike. In terms of consumer psychology, the bag option may indeed be the lesser evil. On ticket-buying websites, extra fees are often not quoted in the initial price displayed to customers - only later, as they're completing their purchase. Given the advantage airlines gain by scoring better in online searches, "a price increase is a far riskier decision than going with this type of fee," says Larry Compeau, a marketing professor at Clarkson University. As Seaney puts it: "Airlines...
...pain, having locked in 70% of its 2008 oil supply at $51 a barrel - said it had "no plans" to institute a bag fee. But even Southwest expects to pay $800 million more in fuel costs in 2008 than last year (compared to United's extimated $2 billion in extra costs). "Our fuel hedges have allowed us to remain profitable, compared to other carriers, but they don't provide full protection against escalating fuel costs," says Brandy King, a spokeswoman for Southwest...
Iavarone bought his piece of the horse from Paul Pompa, a New Jersey guy who runs a Brooklyn trucking company. Pompa was offered some $1.5 million extra for Big Brown from the stable run by Sheik Mohammed bin Rashid al-Maktoum, the ruler of Dubai, who doubles as the most powerful man in horse-racing. No one says no to the Sheik. But Pompa did, because he wanted to keep a 25% share in Big Brown. Before the Preakness, venerable Kentucky stud farm Three Chimneys bought Big Brown's breeding rights for upwards of $50 million, putting at least...
Facing record gas prices, President Bush reluctantly signed a bill to halt the deposit of 70,000 barrels of oil per day into the Strategic Petroleum Reserve, a two-month buffer of crude last tapped to offset disruptions caused by Hurricane Katrina. The amount of extra oil is relatively tiny--the world produces close to 75 million bbl. per day--meaning the move will have little impact on prices. Still, the measure sailed through Congress with overwhelming support...
...sorts of things,” Kennedy School Dean David T. Ellwood ’75 said this weekend. For incoming Rubenstein Fellows such as Justin V. Reed, the fund is meant to alleviate some of the financial burdens entailed by the Joint Degree program’s extra year of schooling. “It’s a great opportunity to take a couple of chances and follow a career path you might be less motivated to do so beforehand,” said Reed, who plans to focus on financial policy issues. According to Ellwood, Kennedy School...