China Southern Airlines ( 600029.SS ) said on Thursday it would accept tickets that cost $1.30 during a two-hour technical glitch on its mobile app and some booking platforms late Wednesday night.
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Consumers began reporting on Chinese social media around 8 p.m. on Wednesday that several flights to and from the southwestern metropolis of Chengdu were available at 10, 20 or 30 yuan ($1.37-$4.12) on China Southern’s app. A snapshot circulating online showed a ticket from Chengdu to Beijing for just 10 yuan, compared to the normal price of 400 to 500 yuan ($54 to $68). Other online snapshots showed the low prices being offered for about two hours on the airline’s app, as well as several ticket booking platforms, including shopping leader Trip.com.
On top of that price, buyers were required to pay at least 110 yuan ($15) extra for airport taxes and fuel surcharges. “Passengers can use them as normalGuangzhou-based China Southern said, provided the tickets have already been paid for and issued.
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Adhering to the wrongly priced tickets will definitely have a negative impact on China Southern’s revenue. The reason is that the tickets sold with the error were priced very low, well below the normal level of tickets. Thus, the company will lose the revenue it would have earned from selling those tickets at a regular price.
In addition, keeping tickets with the wrong pricing can cause unwanted consequences for the company. Passengers who bought these cheap tickets may expect similar offers in the future and may not be willing to pay the regular price for China Southern tickets. This may lead to a decrease in the company’s sales and revenue in the future.
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However, keeping tickets with the billing error can also have positive effects for the company. The company can gain the respect and trust of its customers as it will show that it is fair and reliable. This can lead to increased customer base and company reputation, which can have a positive impact on China Southern’s future revenue.