More on pricing of air tickets

More than a week back, I had written in my blog that the airports need to change the fee structure of user charges, etc. so as to drive the marginal cost down to zero so as to ensure more efficient usage of seat space and better revenue management. It seems like I didn’t? do my research too well. Out of the approx. Rs. 2800 in “fixed charges”, about Rs. 500 only is user charges, the rest being levied by the airlines as “fuel surcharge” (remember that airline fuel isn’t subsidized like petrol or diesel).

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Discounting at megamart

Megamart (the discount chain run by Arvind Brands) has a really weird discount policy. Usually, the discounting mechanism that clothing stores follow is progressive discounting – the more you buy the more discount you get. In fact, even Megamart was following this practice a few months back. “Buy one get 20% off; buy two and get 30% off” and so on. This kind of discounting encourages more sales per footfall, and so the discount is worth it.

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Marginal cost of flying

The problem with all these 1 rupee – 2 rupee offers in indian aviation is that they aren’t really that cheap. On top of this you have the various taxes and user charges which come up to some Rs. 1500 (I’m not sure of the exact number). What has effectively happened is that these charges have put a floor on the price of airline tickets in India.

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SLV Banashankari 2nd Stage

Around this time last year, I was doing a series of blog posts on delivery and revenue management practices in restaurants in Bangalore. My apologies for not updating on that series for so long.

This morning I had my breakfast at SLV in Banashankari 2nd stage (near the BDA complex; opposite the park next to the complex). Despite being within 200 metres of my school, I don’t particularly remember going here too often. This is one of the very old-school darshinis – for a long time, these guys made no dosas. Even the last time I went there (about a year back), they served only idli, vada, kesari bhath and khara bhath. Today, however, I noticed that they were also making masala dosa.

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Protect The Chain, But At What Cost?

Recently the West? Bengal State Marketing Board chairman Naren Chatterjee had to say this about Metro?s entry into the state, ?have heard that they will sell directly to the trade then what will happen to the people in the chain, they will become jobless. We will not allow any one who disturbs the chain.? Similar protests have been on against organized retail, and competition in the agricultural supply chain in various parts of the country.

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The Grameen Bank and Indian Microfinance

It is refreshing that this year?s Nobel Peace Prize has gone to Dr. Mohammed Younus and the Grameen Bank. With the last few Nobel Peace Prizes having gone largely to diplomats, giving the prize to an institution in an underdeveloped country which has taken development to the masses is a welcome change.

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Bhelpuri Economics

Every evening during my last term break, I used to go on a long walk round South Bangalore, and used to top it off by eating somewhere. Being too impatient to sit at a table and order, I would typically saunter into some fast-food places and make good all those calories burnt in the walk. Roti Ghar on most occasions; Upahara Darshini on a few other; Adigas; Cool joint; Chat house; Kakunje’s corn outlets; and a lot of street bhelpuri.

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