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It might seem that an airline could increase profits by

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It might seem that an airline could increase profits by  [#permalink]

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It might seem that an airline could increase profits by reducing airfares on all its flights in order to encourage discretionary travel and thus fill planes. Offers of across-the-board discount fares have, indeed, resulted in the sale of large numbers of reduced-price tickets. Nevertheless such offers have, in the past, actually cut the airline’s profits.

Which one of the following, if true, most helps to resolve the apparent discrepancy described above?

(A) Fewer than 10 percent of all air travelers make no attempt to seek out discount fares.

(B) Fares for trips between a large city and a small city are higher than those for trips between two large cities even when the distances involved are the same.

(C) Across-the-board discounts in fares tend to decrease revenues on flights that are normally filled, but they fail to attract passengers to unpopular flights.

(D) Only a small number of people who have never before traveled by air are persuaded to do so on the basis of across-the-board discount fares.

(E) It is difficult to devise an advertising campaign that makes the public aware of across-the-board discount fares while fully explaining the restrictions applied to those discount fares.

Source: LSAT

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Originally posted by calreg11 on 12 Jan 2012, 20:45.
Last edited by broall on 04 Oct 2017, 02:28, edited 1 time in total.
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Re: It might seem that an airline could increase profits by  [#permalink]

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New post 12 Jan 2012, 23:08
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Let’s first simplify the argument:

Airlines hope to increase profits by offering across-the-board discounts on seats that would otherwise remain unfilled. This strategy has worked in terms of the total number of tickets sold, yet such discounts have actually resulted in a decrease in airlines’ profits.

Now we have to determine which answer choice resolves this paradox.

(A) The behavior of this 10% would not be able to account for the decrease on profit.

(B) The difference in cost regarding small cities and large cities is not mentioned and is thus irrelevant.

(C) Popular flights that were completely filled pre-discount are now going to make a loss because people are paying less for tickets for which they would otherwise have paid more. This is a problem esp. when we read the last part of the answer choice, which explains that the discounts aren’t attracting any new customers to the unpopular flights. Had the unpopular flights attracted passengers that wouldn’t have flown they could be deemed somewhat successful.

(D) This answer choice shows that more people – albeit a very small number – are flying, which would suggest that profits would increase very slightly. Regardless, it in no way accounts for the decrease in profits.

(E) Awareness is important, i.e. if people aren’t aware of the discounts then they are unlikely to take advantage. Still, lack of awareness does not account for why profits decreased. We need an answer choice that gives us a reason why the across-the-board discounts did not work. Only (C) does this by citing that popular flights were losing money, and unpopular flights were not able to fill more seats.

Let me know if that makes sense.
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Re: It might seem that an airline could increase profits by  [#permalink]

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New post 16 Jan 2012, 15:27
Only C plug the hole between two premises.
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Re: It might seem that an airline could increase profits by  [#permalink]

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New post 17 Jan 2012, 07:37
+1 for C. only reasonable option. D is talking about people who have never flown and the question stem is talking about discretionary fliers.
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Re: It might seem that an airline could increase profits by  [#permalink]

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New post 18 May 2018, 00:28
There are only 2 types of flights:
1- Unpopular,
2- Popular

- Popular flights - Get filled - Already filled people will use discounts - Decrease in revenue.- Decrease in Profits
- UnPopular flights - Not filled. - Discounts fail to entice passengers but already present people will use discounts - Decrease in revenue. - Decrease in Profits

This is what C means.

Answer is C.
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Re: It might seem that an airline could increase profits by  [#permalink]

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New post 16 Apr 2019, 04:15
calreg11 wrote:
It might seem that an airline could increase profits by reducing airfares on all its flights in order to encourage discretionary travel and thus fill planes. Offers of across-the-board discount fares have, indeed, resulted in the sale of large numbers of reduced-price tickets. Nevertheless such offers have, in the past, actually cut the airline’s profits.

Which one of the following, if true, most helps to resolve the apparent discrepancy described above?

(A) Fewer than 10 percent of all air travelers make no attempt to seek out discount fares.

(B) Fares for trips between a large city and a small city are higher than those for trips between two large cities even when the distances involved are the same.

(C) Across-the-board discounts in fares tend to decrease revenues on flights that are normally filled, but they fail to attract passengers to unpopular flights.

(D) Only a small number of people who have never before traveled by air are persuaded to do so on the basis of across-the-board discount fares.

(E) It is difficult to devise an advertising campaign that makes the public aware of across-the-board discount fares while fully explaining the restrictions applied to those discount fares.

Source: LSAT


Hi fellows,

Why A is incorrect here? Is it because of the "attempt"? Or it just simply worse than C?

Thanks!
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Re: It might seem that an airline could increase profits by  [#permalink]

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New post 16 Jul 2019, 11:45
jawele wrote:
calreg11 wrote:
It might seem that an airline could increase profits by reducing airfares on all its flights in order to encourage discretionary travel and thus fill planes. Offers of across-the-board discount fares have, indeed, resulted in the sale of large numbers of reduced-price tickets. Nevertheless such offers have, in the past, actually cut the airline’s profits.

Which one of the following, if true, most helps to resolve the apparent discrepancy described above?

(A) Fewer than 10 percent of all air travelers make no attempt to seek out discount fares.

(B) Fares for trips between a large city and a small city are higher than those for trips between two large cities even when the distances involved are the same.

(C) Across-the-board discounts in fares tend to decrease revenues on flights that are normally filled, but they fail to attract passengers to unpopular flights.

(D) Only a small number of people who have never before traveled by air are persuaded to do so on the basis of across-the-board discount fares.

(E) It is difficult to devise an advertising campaign that makes the public aware of across-the-board discount fares while fully explaining the restrictions applied to those discount fares.

Source: LSAT


Hi fellows,

Why A is incorrect here? Is it because of the "attempt"? Or it just simply worse than C?

Thanks!



I almost fell for this one.

Pay attention to the wording of A:
Fewer than 10% of all air travelers make no attempt to seek out discount fares.

Meaning that at least 90% of all air travelers do make an attempt to seek out discount fares. 90% is actually a high percentage of travelers, which would not explain why the profits have been cut when incentives are offered if so many people do take advantage of those incentives.



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Re: It might seem that an airline could increase profits by   [#permalink] 16 Jul 2019, 11:45
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