News notes from around the interweb:
- American Airlines is testing Google’s foreign language interpreter inside Admirals Clubs
- Construction has started to expand American’s New York JFK terminal 8 culminating in moving British Airways over from terminal 7. But the addition of hard stands and stinger gates is hardly an exciting passenger experience to look forward to.
New York JFK Terminal 8
- When hotels break resort fees out of their room rate, consumers underestimate the total price of the room. In other words, people don’t do a good job of math in their head.
Resort fees are an example of what consumer psychologists call partitioned prices, defined as “a method of presenting the price offer to the customer in which the seller unilaterally and arbitrarily divides the total price of a product into two or more separate mandatory components.” In this case, the hotel room charge is one component, and the resort fee is the second one.
A lot of research has looked at how consumers perceive partitioned prices and their effects on buying decisions. Much of it shows that when marketers use partitioned prices (instead of all-inclusive ones), it increases the product’s perceived value by lowering the consumer’s estimate of how much the product costs. Customers may complain about having to pay the mandatory resort fee on review sites, but research shows that they fixate on the hotel’s room rate and underestimate the magnitude of the resort fee.
- Air China suspends flight attendant for leaking personal details of 20 celebrity passengers
- How a travel spot becomes ‘hot’