GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 20 Jun 2018, 23:33

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Several airlines have recently intensified their fierce

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Manager
Manager
User avatar
Joined: 28 Apr 2013
Posts: 144
Location: India
GPA: 4
WE: Medicine and Health (Health Care)
Re: Several airlines have recently intensified their fierce [#permalink]

Show Tags

New post 24 Nov 2013, 07:02
jgomey wrote:
Several airlines have recently intensified their fierce competition for business by offering tickets that, if purchased 2 days in advance, cost as much 40 percent less than the heretofore lowest-priced "Super Saver" tickets, which require a 30-day advance purchase. The airlines' long-term gains from tickets bought under this new plan will be enormous because, unlike earlier discount tickets, these are not refundable.

The author assumes which of the following about discounted airline tickets in predicting long-term gains in airline revenue?

A. More discounted tickets, advance purchase tickets are purchased than are actually used.

B. Tickets requiring 30-day advance purchase are not profitable for airlines.

C. Few business travelers have taken advantage of 30-day advance purchase tickets.

D. Airlines will have to discontinue offering 30-day advance purchase tickets when they begin offering 2-day advance purchase tickets.

E. The majority of the 2-day advance purchase tickets offered by a given airline will be sold to passengers who have not previously flown on that airline.

Source: GMAC Paper test #42, Section 7, Question #3.



Good one;
Answer A, there was confusion between C and B. The B option 30-day advance purchase are not profitable for airlines; They are not profitable thats way the airlines have introduced 2 day adv. purc. tickets. So its wrong. Option C - if few passengers purchased that 30 day adv. pur. tic. then it will weaken the argument conclusion. Option A is also controversial; but you can guess, since few tickets are used hence the airline needs to refund the amount of unused / not needed tickets to customers. The new tickets are non- refundable - will make profits as long term gain.

:banana
_________________

Thanks for Posting

LEARN TO ANALYSE

+1 kudos if you like

Manager
Manager
avatar
B
Joined: 09 Nov 2016
Posts: 56
Re: Several airlines have recently intensified their fierce [#permalink]

Show Tags

New post 14 Aug 2017, 07:54
Advance Purchase Tickets are refundable and hence not profitable.
So, its Simply A.. :-D

Thanks.
Re: Several airlines have recently intensified their fierce   [#permalink] 14 Aug 2017, 07:54

Go to page   Previous    1   2   [ 22 posts ] 

Display posts from previous: Sort by

Several airlines have recently intensified their fierce

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.