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You work for the assistant VP for new technology at a small airline. Your boss has told you to look into a new software system
You work for the assistant VP for new technology at a small airline. Your boss has told you to look into a new software system that is supposed to allow travel agents to make airline reservations more quickly by giving them uptothe minute pricing information. Since your airline is a low price airline, she thinks that this would be to the company's advantage. She wants to find out whether it would be a good idea to participate in this new system. Here's how the new system works: All of the airline fares will report their fares into the central data bank each day. This data bank will be connected to a system that will allow any travel agent to make reservations with any participating airline instantly. Once reported, the fare information for each airline can be accessed by the travel agents and incidentally, by any participating airline The system will also accept "projected" fares. That is you can send the system information about what fares are planned, but these prices can be "held" for a certain period of time before going into effect. So the airline can tell the system that it is planning to offer a certain price for a given flight, but it can instruct the system not to offer that price until, say months from now. For instance, you could tell the system that you will offer a $ round trip fare from Detroit to Miami, but not to sell any tickets at that price until April Even after the projected airfares have been reported to the central database, they can still be changed by submitting a request to the central system. Thus, if the airline decides to cancel the projected airfare to Miami, it can do so at any time up until the end of the holding period. So long as this change is made before the end of the holding period, the original projected fair would never be offered to customers.As you can see, this system offers a number of options that seem to allow for a great deal of flexibility in pricing. Your boss suspects that it could considerably increase your company's profit picture. But before signing on she wants your opinion. Question: What should you tell your boss?
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