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February 9, 2009

So that's why they do that

Did you ever wonder why airlines make it difficult or impossible to transfer your ticket to another passenger? I always assumed that it generated profits but I was unsure of the mechanism. It couldn't just be to sell more tickets, because re-sellable tickets would be more valuable because cancellation wouldn't be a big concern.

The WSJ sheds some light:

Most airlines make their tickets "nontransferable" to protect their fare structures and maintain control of their inventory. Otherwise, entrepreneurs might hoard cheap tickets and then resell them at higher prices closer to departure. Or big companies might buy up a batch of cheap tickets for frequently traveled routes and then assign them to business travelers when trips are planned.

Why Fliers Can't Donate Unused Tickets

Posted by OneEyedMan at February 9, 2009 6:15 PM

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