International Hotels, or airlines services often.give updates to its customers/employees from time to time without charging any extra fess. For example a person from economy class is upgraded to Business class. This is free of cost for the customer. What cost concepts are behind this decision/strategy? For such an upgrade there must be vacancy in higher class, on the other hand there could be a waitlists in the economy class.

If the economy is going down, should the strategy be to use high variable pay, low fixed pay, or should it use high fixed pay, low variable pay structure for its sales persons? Answer using the concept of Budgetary control systems. How does the concept of customer relationship management play here?