Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 27 May 2017, 18:10

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

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Several airlines have recently intensified their fierce

Author Message
TAGS:

Hide Tags

Director
Joined: 25 Aug 2007
Posts: 942
WE 1: 3.5 yrs IT
WE 2: 2.5 yrs Retail chain
Followers: 77

Kudos [?]: 1329 [1] , given: 40

Several airlines have recently intensified their fierce [#permalink]

Show Tags

26 May 2010, 02:09
1
KUDOS
8
This post was
BOOKMARKED
00:00

Difficulty:

35% (medium)

Question Stats:

72% (02:45) correct 28% (01:57) wrong based on 493 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.
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.
[Reveal] Spoiler: OA

_________________

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

If you have any questions
New!
Intern
Joined: 06 Oct 2010
Posts: 40
Followers: 0

Kudos [?]: 24 [1] , given: 29

"Several airlines have recently intensified..." [#permalink]

Show Tags

12 Oct 2010, 21:57
1
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.
(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.
Manager
Joined: 16 Jun 2010
Posts: 185
Followers: 2

Kudos [?]: 92 [1] , given: 5

Re: "Several airlines have recently intensified..." [#permalink]

Show Tags

13 Oct 2010, 03:21
1
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.

Manager
Joined: 21 Aug 2009
Posts: 55
Followers: 1

Kudos [?]: 17 [1] , given: 19

Re: "Several airlines have recently intensified..." [#permalink]

Show Tags

13 Oct 2010, 03:51
1
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.

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.
Manager
Joined: 15 May 2010
Posts: 186
Location: India
Concentration: Strategy, General Management
WE: Engineering (Manufacturing)
Followers: 0

Kudos [?]: 33 [0], given: 65

Re: Several airlines have recently intensified their fierce [#permalink]

Show Tags

26 May 2010, 03:56
A
Manager
Joined: 30 Apr 2010
Posts: 77
Followers: 1

Kudos [?]: 73 [0], given: 1

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.

OA plz?
Manager
Joined: 09 Jan 2010
Posts: 125
Followers: 1

Kudos [?]: 34 [0], given: 12

Re: Several airlines have recently intensified their fierce [#permalink]

Show Tags

26 May 2010, 07:54
it should be A
Director
Joined: 25 Aug 2007
Posts: 942
WE 1: 3.5 yrs IT
WE 2: 2.5 yrs Retail chain
Followers: 77

Kudos [?]: 1329 [0], given: 40

Re: Several airlines have recently intensified their fierce [#permalink]

Show Tags

26 May 2010, 07:56

_________________

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

Intern
Joined: 20 Apr 2010
Posts: 17
Followers: 0

Kudos [?]: 5 [0], given: 3

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.

Hope I am right
Manager
Joined: 24 May 2010
Posts: 67
Followers: 1

Kudos [?]: 21 [0], given: 4

Re: Several airlines have recently intensified their fierce [#permalink]

Show Tags

27 May 2010, 02:52
IMO its A. If only more discounted tickets are purchased and not used then it would maximize profits
Director
Joined: 25 Aug 2007
Posts: 942
WE 1: 3.5 yrs IT
WE 2: 2.5 yrs Retail chain
Followers: 77

Kudos [?]: 1329 [0], given: 40

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.
_________________

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

Manager
Joined: 24 May 2010
Posts: 67
Followers: 1

Kudos [?]: 21 [0], given: 4

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.
Intern
Joined: 23 Sep 2009
Posts: 11
Location: uzbekistan
Schools: Chicago booth,Dartmouth,Duke
Followers: 0

Kudos [?]: 2 [0], given: 0

Re: Several airlines have recently intensified their fierce [#permalink]

Show Tags

27 May 2010, 03:34

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.
Manager
Joined: 19 Feb 2009
Posts: 57
Followers: 3

Kudos [?]: 105 [0], given: 8

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.

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

_________________

Working without expecting fruit helps in mastering the art of doing fault-free action !

Director
Joined: 25 Aug 2007
Posts: 942
WE 1: 3.5 yrs IT
WE 2: 2.5 yrs Retail chain
Followers: 77

Kudos [?]: 1329 [0], given: 40

Re: Several airlines have recently intensified their fierce [#permalink]

Show Tags

27 May 2010, 11:30
OA is A.

Good job guys.
_________________

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

Manager
Joined: 08 Sep 2010
Posts: 226
Location: India
WE 1: 6 Year, Telecom(GSM)
Followers: 4

Kudos [?]: 280 [0], given: 21

Re: "Several airlines have recently intensified..." [#permalink]

Show Tags

12 Oct 2010, 22:15
Straight A.
Manager
Status: Will Retake GMAT
Joined: 30 Jul 2010
Posts: 131
Location: India
Concentration: General Management, Entrepreneurship
Schools: Stanford '13 (D)
GPA: 3.11
WE: Information Technology (Computer Software)
Followers: 3

Kudos [?]: 15 [0], given: 28

Re: "Several airlines have recently intensified..." [#permalink]

Show Tags

13 Oct 2010, 04:21
A clearly....
_________________

Re-taking GMAT. Hope the charm works this time..

Manager
Joined: 17 Apr 2010
Posts: 101
Followers: 2

Kudos [?]: 57 [0], given: 12

Re: "Several airlines have recently intensified..." [#permalink]

Show Tags

13 Oct 2010, 08:12
its A
Manager
Joined: 22 Jun 2010
Posts: 203
Followers: 1

Kudos [?]: 120 [0], given: 13

Re: "Several airlines have recently intensified..." [#permalink]

Show Tags

13 Oct 2010, 08:28
not used ---> non refundable ----> enormous gain
A
Intern
Joined: 06 Oct 2010
Posts: 40
Followers: 0

Kudos [?]: 24 [0], given: 29

Re: "Several airlines have recently intensified..." [#permalink]

Show Tags

15 Oct 2010, 15:36
Thanks for the help guys.
Re: "Several airlines have recently intensified..."   [#permalink] 15 Oct 2010, 15:36

Go to page    1   2    Next  [ 32 posts ]

Similar topics Replies Last post
Similar
Topics:
Several airlines have recently intensified their fierce 0 24 Nov 2013, 07:02
"Several airlines have recently intensified..." 0 16 Dec 2015, 14:38
4 Recently, several advertisers have withdrawn their 35 29 Aug 2016, 13:00
Recently, several advertisers have withdrawn their 0 28 Oct 2015, 11:16
5 Several of a certain bank's top executives have recently 10 04 Nov 2015, 20:34
Display posts from previous: Sort by