The logic for these schemes is always that a vast majority of people enrolling won't really use all that it has to offer.
Take the unlimited buffets for example. How it generally works is if you are offered unlimited buffets at $x a month. Then the restaurant can repeatedly serve you repeated food, oily, spicy and unhealthy. Of course in while to keep you in the game they can serve you good food. But by this they can make you eat less and increase their profits compared to a per meal deal. Every once in a while this doesn't workout and people eat like pigs, and you lose out.
Same with telecom companies, the assumption they make is not everyone has the time for unlimited calls. Now there are people sitting next to me who talk to their girlfriends/boyfriends for hours everyday. There are also guys whom I know who download stuff from torrents 24x7 365 days an year.
Same with health clubs. Entertainment of weekends is expensive. So unlimited plans don't do well.
In this case it was a classic goof up. Free travel opens a flood gate to unlimited vacations.
Take the unlimited buffets for example. How it generally works is if you are offered unlimited buffets at $x a month. Then the restaurant can repeatedly serve you repeated food, oily, spicy and unhealthy. Of course in while to keep you in the game they can serve you good food. But by this they can make you eat less and increase their profits compared to a per meal deal. Every once in a while this doesn't workout and people eat like pigs, and you lose out.
Same with telecom companies, the assumption they make is not everyone has the time for unlimited calls. Now there are people sitting next to me who talk to their girlfriends/boyfriends for hours everyday. There are also guys whom I know who download stuff from torrents 24x7 365 days an year.
Same with health clubs. Entertainment of weekends is expensive. So unlimited plans don't do well.
In this case it was a classic goof up. Free travel opens a flood gate to unlimited vacations.