I’m considering getting one of those cheap tickets you see which is a direct round trip from MSP to Orlando for $60 including fees (it wasnt the date i wanted but it was cheap). How does that make economic sense for the airline? Sure the plane is making the trip anyway, but how can hauling my 200lbs of man meat 1500miles for $30 each direction not more than offset the fuel?
In: Economics
Someone offers you $1000 for you to drive them in your car to Orlando. You say sure. Another person offers $500. You say sure. It only costs you $1250 to drive your car. Would you rather leave the 4th seat empty, or take another person at whatever they’ll pay you?
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