Despite recent successes in raising fares, the airline
industry continues to experience long-term price
deflation on its primary product of a seat on an
airplane. For most customers, air travel has become a
commodity based primarily on ticket price and flight
schedule.
Once travel has begun, however, passengers may be far
more willing to trade price for convenience—as gas
stations, movie theaters, hotels, and casinos have found
with their own customers. 2007
