Problem
Delta airlines is contemplating two kinds of coach tickets to sell for their NYC - Denver route in the winter. In the winter, this route is very popular with skiiers who are going out West to ski at the many big resorts out west.
One is standard (non-refundable, non-changeable, no-checked bags). The other is premium ticket, which they would charge more for, but would include a check-in bag and check-in for skiis or a snowboard.
Delta thinks the premium ticket will be popular with serious skiiers (Group A), and the standard ticket popular with everyone else (Group B). The premium ticket costs Delta slightly more because they have to take into account the cost of the included check-in bag and skiis.
• How much should Delta charge for premium tickets in order to maximize profit?