Question

Outside the flight experience itself, airlines are generating revenue by charging fees for credit cards, frequent-flyer programs, and access to airport lounges. This serves to

Answer 1

Complete Question:

Outside the flight experience itself, airlines are generating revenue by charging fees for credit cards, frequent-flyer programs, and access to airport lounges. This serves to

Group of answer choices:

A. increase competition.

B. expand the profit pool.

C. provide better customer service.

D. satisfy regulators

Answer:

B. expand the profit pool.

Explanation:

Outside the flight experience itself, airlines are generating revenue by charging fees for credit cards, frequent-flyer programs, and access to airport lounges. This serves to expand the profit pool.

Generally, all business entities are typically set up to generate revenues by engaging or increasing the number of services being offered to potential customers and as a result of this, make more money or profits.

In this scenario, the airline company has diversified its portfolios through the provision of services centered around the transport or logistics business such as use of credit cards as a means of payment by the customers, use of airport lounges as relaxation spot, waiting area and use of frequent-flyer programs as a form of advert in the airport or on board.