Airline Mogul Forum
Airline Mogul => General Chat => Topic started by: Pepperjack on September 25, 2007, 09:19:23 pm
-
Was just wondering if this is like it should be.
Assume I put my fares at $195 and someone is at $200.
If they come back and put theirs down to $195, they will take all (or the majority) of the customer's even though are fares are the same. I've noticed it on multiple routes with different combinations of planes.
-
Yes.
Then you lower yours to 194.
Then they put theres to 193, then yours to 192.. its a vicious circle, finally ends up a 1
-
Yes.
Then you lower yours to 194.
Then they put theres to 193, then yours to 192.. its a vicious circle, finally ends up a 1
Then it sits at $1 for a while, people start leaving the routes b/c they're loosing money and then it starts over again.
-
Actually, sometimes it's not always tat they're setting it down the same as you, but that they could be undercutting you by 1 cent. It seems like it is a method that works, and since the system rounds it off to the nearest Euro, well you know the rest. But if you're still making like a decent profit, you should be ok.
-
Sometimes you can simply stop that circle if you don't edit your routes above 70 percents. That's of course costing you money, but not as much as an 1-Euro route.
-
Sometimes you can simply stop that circle if you don't edit your routes above 70 percents. That's of course costing you money, but not as much as an 1-Euro route.
This is true.
Plus you have to spend a good bit of money every RL day to edit all your routes up to 100%
On some of the more popular routes 1$ will kick your load down to 0% though.
-
That's why you should stop lowering the price till rock bottom if you already have 85%+ loadfactor..
-
That's why you should stop lowering the price till rock bottom if you already have 85%+ loadfactor..
But if a competitor has 100, and I put 101 I get 0-12%, if I put 100 I get 100%, and the competitor gets 0-12% even if we have the same fare. So it's not that easy to stop at 85% when the difference in a buck is from 0 to 100%...
Ideally if there are 150 pax, and we both use a 150 pax a/c it should be a 50% load factor on both, and not 100% on one, and nothing on the other if the fare is the same.
-
That's why you should stop lowering the price till rock bottom if you already have 85%+ loadfactor..
But if a competitor has 100, and I put 101 I get 0-12%, if I put 100 I get 100%, and the competitor gets 0-12% even if we have the same fare. So it's not that easy to stop at 85% when the difference in a buck is from 0 to 100%...
Ideally if there are 150 pax, and we both use a 150 pax a/c it should be a 50% load factor on both, and not 100% on one, and nothing on the other if the fare is the same.
Use a smaller aircraft :D .. or just fight back lol
-
That's why you should stop lowering the price till rock bottom if you already have 85%+ loadfactor..
But if a competitor has 100, and I put 101 I get 0-12%, if I put 100 I get 100%, and the competitor gets 0-12% even if we have the same fare. So it's not that easy to stop at 85% when the difference in a buck is from 0 to 100%...
Ideally if there are 150 pax, and we both use a 150 pax a/c it should be a 50% load factor on both, and not 100% on one, and nothing on the other if the fare is the same.
Most of the time though you're not using the same size aircraft, in which case the smaller plane will have a higher load factor.
The flip side is that when the small plane fills up, the bigger plane will carry more passengers, even if it's not full. So the smaller plane's load factor will be higher, but at that same price the bigger plane's revenue will be higher.
Also remember that in AM it costs money to edit a route, and that it's more expensive on the longer the flight is. It might make sense to get into a fare war for an extra 10% load factor on a 100 mile flight, but trying to get that extra 10% on a flight across the Pacific would probably cost more than it's worth, especially if your competitor is going to lower his fares in response.
-
Or you leave it at $1 until people leave. :)