Wyvonnie R.

asked • 03/08/19

What is percent passenger Tavel will increase

Each Tuesday Ryan Airlines reduce it one-way ticket from Fort Wyane to Chicago from $100-$30. To receive special$30 price the customer must buy a round-trip. Ryan has a non-refundable 25% penalty fare to cancellation It estimates that about seven-tenths of 1% will cancel. The airlines also estimate this special price will cause a passenger increase from 500 to 900. Ryan expects revenue for the year to be 53.3% higher than pervious year. Last year Ryan sales were 486,000. To receive the special rate, Janice bought two round trip ticket on other airlines, Janice has paid$75 round-trip (with no cancellation penalty

John M.

The only data to consider is: It estimates that about seven-tenths of 1% will cancel. The airlines also estimate this special price will cause a passenger increase from 500 to 900. So cancellations will be 900 x 0.7 x 0.01 = 6.3 or 7 people will cancel. Then 893/500 = 179% increase in passenger travel is estimated.
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02/23/20

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