Airline Mogul Forum
Airline Mogul => General Chat => Topic started by: blumage on January 04, 2008, 10:56:48 am
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NOw i'm starting to build up my frustration, Do some of you rally need to start pricing the 1€ fare? Where everybody else is at least pricing 240% more?
Are we going to end like last round? :evil:
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Thank god for multiworlds...
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The problem is bigger airlines can easily drop their price to 1 Euro because they are only incurring a minimum in costs ... amking a loss of 100 something euro's I just checked. I feel that that loss figure needs to be a tad higher.
Waerth
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Let the ranting begin. 8)
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It's not the 1 euro that makes it differ 240%, it's when some people use 10 freq just to keep a gate, which is pointless really....
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People seem to want to f*** up.. I guess I shall screw about getting high ranking and try to f*** up for everyone else then too then.. ?
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I'm charging €1 above the 100% loadfactor level on my affected routes (which means I only get 80-something% LF) but people keep lowering prices.
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Unless it's a small airline it can actually be an intelligent ploy on overcrowded routes. Big airline has two spare planes and wants to get in route A, which is crowded but has a high number of pax at both ends. Big airline throws both big planes on the route at 1 Euro. People get angry due to the money they're losing, as you did, and move to route B. Big airline now has an empty route, throw one plane off and jack up the price of the other. Wash and repeat. It's the 10 frequency which is useless. Not only does it lose everyone money but you can't use that same plane for another route as well as it taking up a tonne of gate space.
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All airlines are attacking me at Bastia, im just a little company that wants money and a hub without competition (evrebodys trying to kill my little airline in Bastia, they are invading my best routes!
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they are invading my best routes!
I'm one of them! :D The "best routes" tend to get hit hard, very hard... My DUS-LHR route is as good as nonexistant these days.
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AM THEORY
1.monopoly the route
2.one competitor in.
3.more competitor in,price war start.
4.fare drop to $1.
5.people leaving the route,because of zero profit.
6.return to 1.
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It's part of the game! It'd get boring if you started a route and it stayed the same for the rest of the game! This sometimes encourages you to go find other routes for your planes that you wouldn't be very interested in before...
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Get off the obvious routes. Stop with all the 'frankfurt-Amsterdams' for example. I had hubs in Tallin and Bergen... small airports but no competition
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Get off the obvious routes. Stop with all the 'frankfurt-Amsterdams' for example. I had hubs in Tallin and Bergen... small airports but no competition
Maybe I should go dump Bergen next! :D
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Get off the obvious routes. Stop with all the 'frankfurt-Amsterdams' for example. I had hubs in Tallin and Bergen... small airports but no competition
Maybe I should go dump Bergen next! :D
omg, why not muc? :twisted:
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Get off the obvious routes. Stop with all the 'frankfurt-Amsterdams' for example. I had hubs in Tallin and Bergen... small airports but no competition
Maybe I should go dump Bergen next! :D
omg, why not muc? :twisted:
Competing with huge airlines in famous cities generally leads to the price spiral which led to the start of this topic. With Sl1p Air and ALFC already at Munich, it makes no economic sense to go into MUC.
And besides, I don't compete with ALFC right? :P
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Competing with huge airlines in famous cities generally leads to the price spiral which led to the start of this topic. With Sl1p Air and ALFC already at Munich, it makes no economic sense to go into MUC.
And besides, I don't compete with ALFC right? :P
ah well i figured you would join in to make jps happy!
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There can be many reasons for this. Perhaps the route means a lot to you and they want to make sure you don't profit from it. Perhaps you came into a route where they were making money and decided to throw a commuter in there and steal their customers. It could also be that someone is pissed that little airlines are still sticking a pilatus or beech on there. It could be that they saw you overreaching your bounds and saving up and buying a 737 and they want to make you only get what they get from a small plane for your massive investment.
It could be any one of a number of reasons. I can say that I've done it and it seems that it is having the right effect.
In reality, pricing on main routes where there are plenty of leisure travelers is always low. The airlines often need these to feed their networks so the price of these in and of themselves isn't a huge concern. You might only charge $1 for Chicago-JFK, but you probably would need that for passengers connecting to an international flight.
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AM THEORY
1.monopoly the route
2.one competitor in.
3.more competitor in,price war start.
4.fare drop to $1.
5.people leaving the route,because of zero profit.
6.return to 1.
Last round I've never gave up to those ppol. I still operated the route even if i will loose money!!!!!!!
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AM THEORY
1.monopoly the route
2.one competitor in.
3.more competitor in,price war start.
4.fare drop to $1.
5.people leaving the route,because of zero profit.
6.return to 1.
Last round I've never gave up to those ppol. I still operated the route even if i will loose money!!!!!!!
I'm the same - would rather run at 1 euro than give in :)
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Which is great in many cases as it means your competitors have resources tied up and losing money. It generally favors the larger players.
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I have the 1 euro fare on two of my routes to make a point to my competitor that keeps lowering his fare to just one below mine, that I will not give in, and I will keep my route, even if I make very little profit, and I won't let him hold a monopoly over the route.
But anyway, only us two operate that route, so it doesn't hurt anyone else.
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I just got tired of adjusting my rates every few minutes. The vast majority of the routes I'm at once the rates stabilize after a newcomer arrives, all is good. If someone wants to continue adjusting rates down, they will have a decision to make. I'm a smaller airline, but I'll fight.
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Didn't I already lock this pointless piece of wasted bandwidth once???
Ohhh, wait it was another pointless waste of bandwidth with the same complaints.
This like the rest of the '1 euro fares suck' threads is going nowhere
The big players will say 'we have to', the smaller ones say 'we have to'
In the end, they both do it, and the thread still ends up getting the big ole lock
So we will save the time and effort, and *click*