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.
It appears that you are browsing the GMAT Club forum unregistered!
Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club
Registration gives you:
Tests
Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.
Applicant Stats
View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more
Books/Downloads
Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!
Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:
Several airlines have recently intensified their fierce [#permalink]
Show Tags
26 May 2010, 02:09
1
This post received KUDOS
8
This post was BOOKMARKED
00:00
A
B
C
D
E
Difficulty:
35% (medium)
Question Stats:
72% (02:45) correct
28% (01:56) wrong based on 492 sessions
HideShow timer Statistics
Several airlines have recently intensified their fierce competition for business by offering tickets, that if purchased 2 days in advance, cost as much as 40% less than the heretofore lowest-priced "super-saver" tickets, which require a 30day advance purchase. The airline's long-term gains from tickets bought under this new plan will be enourmous bc 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, advance purchase tickets are purchased than are actually used. B. Tickets requring 30day advance purchase are not profitable for airlines. C. Few business travelers have taken advance of 30day advance purchase tickets D. Airlines will have to discontinue offering 30day 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 previous flown on that airline.
Official Answer and Stats are available only to registered users. Register/Login.
_________________
Want to improve your CR: http://gmatclub.com/forum/cr-methods-an-approach-to-find-the-best-answers-93146.html Tricky Quant problems: http://gmatclub.com/forum/50-tricky-questions-92834.html Important Grammer Fundamentals: http://gmatclub.com/forum/key-fundamentals-of-grammer-our-crucial-learnings-on-sc-93659.html
Re: Several airlines have recently intensified their fierce [#permalink]
Show Tags
26 May 2010, 04:27
IMO B
initially i thought A but 'More discounted, advance purchase tickets are purchased than are actually used' does not mean that they are less profitable than the new offfer.
B. Tickets requring 30day advance purchase are not profitable for airlines.
Re: Several airlines have recently intensified their fierce [#permalink]
Show Tags
26 May 2010, 07:56
I already have the answer.
If you can support your answer with your reasoning then that will be worth for everyone reading this post.
_________________
Want to improve your CR: http://gmatclub.com/forum/cr-methods-an-approach-to-find-the-best-answers-93146.html Tricky Quant problems: http://gmatclub.com/forum/50-tricky-questions-92834.html Important Grammer Fundamentals: http://gmatclub.com/forum/key-fundamentals-of-grammer-our-crucial-learnings-on-sc-93659.html
Re: Several airlines have recently intensified their fierce [#permalink]
Show Tags
27 May 2010, 02:42
1
This post was BOOKMARKED
Premise:
Case1:30 day advance tickets -> some discount but are refundable on cancellation. Case2:32 day advance tickets -> cost 40% less than the one above and are non refundable.
Conclusion:Thus, airlines is hoping that more people will book the tickets of case 2 considering the bigger discount and hoping that the trend to cancel the tickets continue, thereby increasing their long term gains.
Assumption:
A) More discounted, advance purchase tickets are purchased than are actually used.
Re: Several airlines have recently intensified their fierce [#permalink]
Show Tags
27 May 2010, 03:04
If tickets are sold then that will maximise the profits. How does using them affect the profits. Moreover, it's not mentioned that the tickets are refunded often.
_________________
Want to improve your CR: http://gmatclub.com/forum/cr-methods-an-approach-to-find-the-best-answers-93146.html Tricky Quant problems: http://gmatclub.com/forum/50-tricky-questions-92834.html Important Grammer Fundamentals: http://gmatclub.com/forum/key-fundamentals-of-grammer-our-crucial-learnings-on-sc-93659.html
Re: Several airlines have recently intensified their fierce [#permalink]
Show Tags
27 May 2010, 03:12
The assumption that discounted tickets are bought but no being used = no refund : therefore the airline's long-term gains from tickets bought under this new plan will be enormous.
Re: Several airlines have recently intensified their fierce [#permalink]
Show Tags
27 May 2010, 03:34
The answer is C.
Assumption is that business travelers do not plan their flights a month earlier.Thats why new 2-day tickets with 40 discount will be successfull, since business travelers will definitely fly.
Re: Several airlines have recently intensified their fierce [#permalink]
Show Tags
27 May 2010, 11:11
IMO A..
below is the reasoning
A. More discounted, advance purchase tickets are purchased than are actually used.- This explains why the gains from the new Plan will be enourmous. More Discounted--> More Tickets Purchsed--> More Probability of Ticket Cancellations due to short period of 2 days-->So more tickets Purached than actully used..and since these tickets are non-refundable the gain is more to Airline
B. Tickets requring 30day advance purchase are not profitable for airlines.-This Doenst explain why the gains from the new plan will be more.
C. Few business travelers have taken advance of 30day advance purchase tickets - Irrelevent
D. Airlines will have to discontinue offering 30day advance purchase tickets when they begin offering 2-day advance purchase tickets. -This Doesnt lead tho the Conclusion
E. The majority of the 2 day advance purchase tickets offered by a given airline will be sold to passengers who have not previous flown on that airline.- Out of Scope
ykaiim.. Please post the OA _________________
Working without expecting fruit helps in mastering the art of doing fault-free action !
Re: Several airlines have recently intensified their fierce [#permalink]
Show Tags
27 May 2010, 11:30
OA is A.
Good job guys.
_________________
Want to improve your CR: http://gmatclub.com/forum/cr-methods-an-approach-to-find-the-best-answers-93146.html Tricky Quant problems: http://gmatclub.com/forum/50-tricky-questions-92834.html Important Grammer Fundamentals: http://gmatclub.com/forum/key-fundamentals-of-grammer-our-crucial-learnings-on-sc-93659.html
"Several airlines have recently intensified..." [#permalink]
Show Tags
12 Oct 2010, 21:57
1
This post received KUDOS
1
This post was BOOKMARKED
Could anyone explain the answer to this one:
Several airlines have recently intensified their fierce competition for business by offering tickets that, if purchased 2 days in advance, cost as much as 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, 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.
Re: "Several airlines have recently intensified..." [#permalink]
Show Tags
13 Oct 2010, 03:21
1
This post received KUDOS
Straight A.
Reasons: On Negating the Option A the premise does not hold.
This is because if Less tickets are used then most of the purchased tickets are refunded and the Planes are flying with empty seats leading to loss in revenue.
_________________
Please give me kudos, if you like the above post. Thanks.
Re: "Several airlines have recently intensified..." [#permalink]
Show Tags
13 Oct 2010, 03:51
1
This post received KUDOS
1
This post was BOOKMARKED
Several airlines have recently intensified their fierce competition for business by offering tickets that, if purchased 2 days in advance, cost as much as 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 above statements say that more people purchase tickets in advance. The passage assumes that lots of these tickets go unused. So the airlines gains from these unused tickets because they are not refundable. Any statement which states that the tickets are not used would be the right answer.
The author assumes which of the following about discounted airline tickets in predicting long-term gains in airline revenue? (A) More discounted, advance purchase tickets are purchased than are actually used. This statements mentions that the tickets are not used. hence this is the right answer.
(B) Tickets requiring 30-day advance purchase are not profitable for airlines. Passage is not concerned whether the 30 -day advance purchase is profitable or not.
(C) Few business travelers have taken advantage of 30-day advance purchase tickets. Not mentioned and irrelevant. Even if they take advantage of the advance tickets it is not profitable for the airlines in terms of revenue.
(D) Airlines will have to discontinue offering 30-day advance purchase tickets when they begin offering 2-day advance purchase tickets. This is a consequence of the conclusion. Not an assumption.
(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. Not an assumption and totally irrelevant.
There’s something in Pacific North West that you cannot find anywhere else. The atmosphere and scenic nature are next to none, with mountains on one side and ocean on...
This month I got selected by Stanford GSB to be included in “Best & Brightest, Class of 2017” by Poets & Quants. Besides feeling honored for being part of...
Joe Navarro is an ex FBI agent who was a founding member of the FBI’s Behavioural Analysis Program. He was a body language expert who he used his ability to successfully...
close
72% (02:45) correct
4
