A cruise liner sells two classes of tickets: economy class and first class. They also have...

Transcribed Image Text:

A cruise liner sells two classes of tickets: economy class and first class. They also have identified two types of travelers, whom they call: Luxury Conscious, and Budget Travelers. Based on some market research, they have the following information about these two segments and their willingness to pay (or valuation) for their ticket classes. Economy Market Ticket First Class Ticket Segments Size Valuation Valuation Luxury 5000 $200 $1000 Conscious Budget 10000 $100 $300 Travelers The table above shows, for example that Luxury Conscious travelers value the economy class ticket at $200 and the first-class ticket at $1000 respectively. If they are only able to sell one type: economy or first-class tickets, which type should the cruise liner sell to maximize revenues? Economy First A cruise liner sells two classes of tickets: economy class and first class. They also have identified two types of travelers, whom they call: Luxury Conscious, and Budget Travelers. Based on some market research, they have the following information about these two segments and their willingness to pay (or valuation) for their ticket classes. Economy Market Ticket First Class Ticket Segments Size Valuation Valuation Luxury 5000 $200 $1000 Conscious Budget 10000 $100 $300 Travelers The table above shows, for example that Luxury Conscious travelers value the economy class ticket at $200 and the first-class ticket at $1000 respectively. If they are only able to sell one type: economy or first-class tickets, which type should the cruise liner sell to maximize revenues? Economy First