It actually should not come as a surprise to anyone that final, all-in costs for products ranging from clothing to airline tickets to consumer mobile and telecom services are higher than the “advertised” prices. That is what happens when the internet allows easy price comparisons between alternatives.
If consumers sort by “lowest price,” then any supplier that shows “all-in” costs including taxes, additional fees and options is going to suffer, in comparison to rivals who only show the basic charge, without the upgrades, add-ons or taxes.
The reason many airlines advertise one base price, without the taxes or various upgrades, is that they do not wish to disadvantage themselves in search engine results. Yes, this means less price transparency. But it is rational behavior, not an attempt to deceive.
No comments:
Post a Comment