Airline Mogul Forum

editing routes to make more money

iranair777

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on: January 07, 2008, 01:03:42 pm
Why is it when we are increasing the price after flying the same route for a long time, do you stay with a loadfactor of 100%, but the profit goes down?? the profits suppose to go up because we are increasing the price, not go down :evil:



pocketbookbrando

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Reply #2 on: January 07, 2008, 09:55:40 pm
Well picture how much money Microsoft would make if Windows cost $1000000000000000000000000000000000.  Nobody would buy it.  Essentially, when you have a monopoly on the route, you want to charge the price where margin demand = marginal cost.  Your ideal level of profit comes when you can raise the price to the highest level possible while still keeping your plane full.

Take a course on it if you're in high school or do some basic economics courses if you're done school.  Learning about pricing structures is interesting.


Chavaquiah

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Reply #3 on: January 07, 2008, 10:04:01 pm
Quote from: "iranair777"
Why is it when we are increasing the price after flying the same route for a long time, do you stay with a loadfactor of 100%, but the profit goes down?? the profits suppose to go up because we are increasing the price, not go down :evil:

Costs up. Fuel, for instance.


iranair777

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Reply #4 on: January 07, 2008, 10:21:47 pm
Quote from: "mg35pt"
Quote from: "iranair777"
Why is it when we are increasing the price after flying the same route for a long time, do you stay with a loadfactor of 100%, but the profit goes down?? the profits suppose to go up because we are increasing the price, not go down :evil:

Costs up. Fuel, for instance.


i dont think you got my point


Air Elbonia

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Reply #5 on: January 07, 2008, 10:48:29 pm
Quote from: "iranair777"
Quote from: "mg35pt"
Quote from: "iranair777"
Why is it when we are increasing the price after flying the same route for a long time, do you stay with a loadfactor of 100%, but the profit goes down?? the profits suppose to go up because we are increasing the price, not go down :evil:

Costs up. Fuel, for instance.


i dont think you got my point


i altered where the "peak" is for food/drink, which may erode into the new profits a little.
Air Elbonia, First in Time Travel since 2073!  (AEB ID in Game: 333)


 

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