DOC vs Load factor

[GoldDragonFly]

Between the DOC and the load factor, which one is more important to keep the highest to ensure growth?

[dktc]

DOC. Growth is all about cash. LF has no direct bearing on growth. LF just happen to be related to revenue and thus DOC.

[GoldDragonFly]

Ok, I see. My load factor is at 97% now and my DOC about 280 000. So far, I have been keeping an eye on the load factor when creating routes, but obviously I want my DOC to be higher, so from your reply, my understanding is that I should not bother too much with the load factor right?

[DarkPet]

Loadfactor of 95% is not a big diference from 100% but if it falls more it could be. Loadfactor gives you DOC (More passengers = more money). You need to do your math. Sometimes slightly lower LF will give you more DOC. Why? It's simple...

Ticket price       Passengers               Total revenue
100                  90/100 (90% LF)        9000
85                   100/100 (100% LF)      8500

Note: All numbers are made up so if someone is smart enough to say something about them, please dont!

I personally tend to keep LF at 100%

[GoldDragonFly]

Should I take the load factor for each route in consideration or the overall load factor of the airline?

[DarkPet]

Each route. If you have, say, 300 flights and on one you have 50% that will give you 98.33% overall but on that one you will acctually loose money and in the end it will give you less DOC

[GoldDragonFly]

Ok, great. Thank you everyone!

[iranair777]

Loadfactor of 95% is not a big diference from 100% but if it falls more it could be. Loadfactor gives you DOC (More passengers = more money). You need to do your math. Sometimes slightly lower LF will give you more DOC. Why? It's simple...

Ticket price       Passengers               Total revenue
100                  90/100 (90% LF)        9000
85                   100/100 (100% LF)      8500

Note: All numbers are made up so if someone is smart enough to say something about them, please dont!

I personally tend to keep LF at 100%

I never knew that you know; I should give that a go :/

[Tiger In Training]

From my experience, 100% load factor on a lower price will earn a higher amount than 90% LF at any other price.

[dimitris340]

You just have to find the highest exact price (even sometimes using decimals) where you get 100% loadfactor. That price will always give you more than any other combination

[GoldDragonFly]

I am currently on a 98.22% load factor for the airline on daily routes (22 routes) but from what I understand it will be more beneficial to have it at 100% since I am a new airline. I tweaked some of them a bit only to find the profit per flight on some of them dropped dramatically, which brought my DOC down again which is not what I want. Maybe my strategy was wrong....I used a bigger aircraft to fly to the same destination that a smaller aircraft is flying to as well, which obviously meant that there would be a ticket price difference because of the size aircraft. Was this wrong to do? I am too worried to edit the routes of the other one's that went lower in profit now.

[Cheung Airlines]

Yes, to grow big in AM, there are a few rules of thumb to be kept in mind of:

Code: [Select]

[list]
[li]Never use frequencies higher than 1 unless youre using the plane's "extra hours"[/li]
[li]Never use two different planes to fly the same route[/li]
[li]Fly the closest route that you havent flown with your planes and fly them once you got the planes[/li]
[li]Lastly, buy planes that got the most pax*[/li]
[/list]*Depends on speed and range too, of course.

[GoldDragonFly]

Thanks! I realized, almost too late, but luckily I managed to prevent a disaster, so I changed my routes a bit. Now I am flying to all airports in my base country & making a higher profit, which is very good. What would the next step be for me? International? Inter-continental?

[Cheung Airlines]

International first

When you reached 1000nm-2000nm (depends), stop flying to all airports and focus on larger airports. The further you go, the larger the airport should be.

And stick back to the topic:
Yes, planes with a relatively small pax has no difference in 100%LF and Highest DOC. However, the larger the plane is, the larger the difference becomes.
[Personal experience] a 747-200 between optimum DOC and 100%LF is around 2-10k per route.