Scenario 15-5 An Airline Knows That There Are Two Types of Travelers

question 247

Multiple Choice

Scenario 15-5
An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on the plane. Suppose the cost to the airline of providing the flight is $20,000, which includes the cost of the pilots, flight attendants, fuel, etc.
-Refer to Scenario 15-5. How much additional profit can the airline earn by charging each customer their willingness to pay relative to charging a flat price of $600 per ticket?

• A)$15,000
• B)$25,000
• C)$40,000
• D)$70,000

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Definitions:

Promises and Offers

A strategy in negotiations where commitments or benefits are proposed to reach an agreement.

Deadlines

Specific time limits set for the completion of tasks or achievement of objectives, which can pressure decision-making processes.

Fisher's Major Approaches

The foundational strategies for negotiation detailed by Roger Fisher, emphasizing interests, options, and mutual gains.

Fractionating Conflict

The strategy of breaking down a large or complex conflict into smaller, more manageable disputes.