Cebu Pacific or Cebu Pac is a Philippine low-cost airline based on the grounds of Ninoy Aquino International Airport(Manila Terminal 3), Pasay City, Metro Manila, the Philippines. It offers scheduled flights to both domestic and international destinations.
The pricing strategy they us are:
- Economy Pricing
- Penetration Pricing
- Psychological Pricing
- Optional Product Pricing
- Captive Product Pricing
- Promotional Bundle Pricing
Philippines Airline or PAL is the flag carrier of the Philippines. Headquartered at the PNB Financial Center in Pasay City, the airline was founded in 1941 and is the first and oldest commercial airline in Asia operating under its original name.
PAL’s prices in November were already expensive. Pal is a lot more expensive the Cebu Pacific because of its world class treatment. Pal is using Premium Pricing because it is a first class airline in the country. There are little promotions about Pal during peak season because they are confident that they already have a market share in the market that are theirs.
They uses Optional Product Pricing because it has known for the airlines to have hidden charges and it is already expected among it clients.
1. Are airline prices fixed or erratic?
Their prices will eventually increase during peak seasons because airlines are taking the advantage to maximize their sales. There are many promotions in the airline industry. The prices of both airlines are based on seasonal events.
2. What are your thoughts?
If I plan to buy a ticket, I would book early or wait for a promo going on in order for me to save. Airline tickets are very expensive.
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