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General Chat / Route Frequency: 1 vs. 2, 3, etc.
« on: April 15, 2008, 03:43:55 pm »
Hello everyone,
I do not want to start a flame war, so please do not hijack this thread with hateful comments. I would please like a meaningful discussion.
I am very new to this game, but I have already seen comments about the "haters" who create routes with frequencies greater than 1. Such players are considered as "not knowing how to play the game" or similar comments. I open this thread to understand why some players make these comments.
I would like to start with an example.
When I attempt to start a route, say Chicago to Detroit, I try a frequency of 1. I increase the price until the return starts to drop (profit begins to fall). That way I find the maximum price I can charge to receive max profits at that frequency. Let's say it comes to be ~$45,000 DOP. I then try a frequency of 2. I must drop the price to entice more passengers to fly. However, I am able to obtain a DOP of $65,000. I then try a frequency of 3 and end up obtaining a DOP of $89,000. I then try a frequency of 4 but cannot obtain a higher DOP (I have to drop the price too much to entice more passengers). So, I settle on a frequency of 3. I would think that makes perfect business sense.
Now, I am VERY careful not to lock in a ticket price lower than the lowest price already on the market. I understand that it is bad for everyone to start a price war. So, in all of my routes, I have made sure to set my price at least a few dollars higher than the lowest price already on the market. Even so, I am able to use frequencies of 3 and receive good profits.
Why would I want to settle for a frequency of only 1 when it would result in less profit?
Thank you for your help!
I do not want to start a flame war, so please do not hijack this thread with hateful comments. I would please like a meaningful discussion.
I am very new to this game, but I have already seen comments about the "haters" who create routes with frequencies greater than 1. Such players are considered as "not knowing how to play the game" or similar comments. I open this thread to understand why some players make these comments.
I would like to start with an example.
When I attempt to start a route, say Chicago to Detroit, I try a frequency of 1. I increase the price until the return starts to drop (profit begins to fall). That way I find the maximum price I can charge to receive max profits at that frequency. Let's say it comes to be ~$45,000 DOP. I then try a frequency of 2. I must drop the price to entice more passengers to fly. However, I am able to obtain a DOP of $65,000. I then try a frequency of 3 and end up obtaining a DOP of $89,000. I then try a frequency of 4 but cannot obtain a higher DOP (I have to drop the price too much to entice more passengers). So, I settle on a frequency of 3. I would think that makes perfect business sense.
Now, I am VERY careful not to lock in a ticket price lower than the lowest price already on the market. I understand that it is bad for everyone to start a price war. So, in all of my routes, I have made sure to set my price at least a few dollars higher than the lowest price already on the market. Even so, I am able to use frequencies of 3 and receive good profits.
Why would I want to settle for a frequency of only 1 when it would result in less profit?
Thank you for your help!