Suppose Delta takes this slightly more expensive route, and provide slightly better service. Do you suppose that customers will choose the more expensive fare required to support that choice? Or will the large majority take the $115 fare over Delta's $117.25?
My guess is that they will take cheap, 90% of the time.
Tom
You're probably right, although I have to admit that I never could understand what kind of system the airlines use for calculating their fares. And the fare itself may be deceptive if it doesn't include all the extra charges. Things that used to be complementary now come with a charge, such as snacks and soda. I'm surprised they haven't implemented pay toilets yet.
Some people might pay a slightly higher fare if they see better service in return. That's the thing; someone might try a different airline and even be willing to pay a little more, only to find the same sub-standard service. So, the customers might think "Well, if I'm going to get lousy service anyway, might as well just pay the lowest fare."
To be fair, though, I don't think customers expect that much, other than a seat on an airplane to their destination. It doesn't have to have a lot of extra frills, but at least a modicum of reasonable service should be expected. I might go into an expensive restaurant and expect top-level service, better than I might receive at a cheaper place like McDonald's. But even McDonald's personnel are reasonably friendly and try to provide decent service. Same for Walmart personnel; it's a cheap store, but they're still generally pretty nice. Just because a product or service is cheap doesn't really give its employees license to act like jerks towards their customers.