The Root Cause of the United Airlines Incident is a Govt Pricing Regulation

While there are varying opinions about the actions of the passenger who was dragged off a United Airlines flight on Sunday, his defiance highlights an injustice regularly practiced by airlines: involuntary bumping. 

My latest digital article for the Harvard Business Review discusses why overbooking makes sense, but when airlines lose on their bets (more passengers show up than available seats), they need to solve their problem using the free market. A key problem is the U.S. Department of Transportation has put in place regulations that curb an airline’s responsibility for overbooking and in the process, actually encourage airlines to involuntarily bump passengers.

Posted on April 12th, 2017 (0 Comments)

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The Upside of No-Frills Pricing

Last week both United and American Airlines joined Delta in offering a discounted Basic Economy fare. So how much of a discount would it take for you to forego choosing your seats, boarding last (“Now boarding zone Z”), fees for checked & carry-on luggage, and giving up the ability to change flights?

It’s a challenge to see how a further degradation of airline service could be profitable and benefit customers. But yes, it’s true! Please check out my new digital article for the Harvard Business Review which discusses the benefits of rolling out a stripped down version of your products and services. 

Posted on March 3th, 2017 (0 Comments)

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How Retailers Should Think About Online vs. In-Store Pricing

Boy, brick & mortar retailers had a rough holiday season – and this is exacerbating Wall Street’s skittishness on their stock prices. Both Macy’s and Kohl’s reported moderate 2.2% drops in same store holiday sales. The result? Their stocks were crushed by 10% and 15% respectively.

Brick & mortar retailers have been grappling with how to react to low online prices ever since Amazon’s inception 23 years ago. Given Wall Street’s scrutiny on every revenue metric, punting on implementing a new pricing strategy is no longer an option. I think that in many cases, brick & mortar retailers need to view their brick & mortar vs. online operations as addressing different customers with different needs and price sensitivities. For further details, please check out my latest piece for the Harvard Business Review.

As always, thank you for reading my blogs!

Posted on January 26th, 2017 (0 Comments)

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