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Online Airline Management Simulation
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Author Topic: Why is it...  (Read 2836 times)

Offline razzbc

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  • Posts: 17
Why is it...
« on: December 15, 2009, 08:04:31 AM »
That people insist on trying to takeover the routes of other players...

is the the point of the game? is it really necessary?

lame.

if you want a price war, you've got one...

Offline Unbornio

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  • Posts: 662
Re: Why is it...
« Reply #1 on: December 15, 2009, 10:29:52 AM »
It isn't necessary but it's better to have an edge over your competitor as things get tough when the round really starts going.
Beta Tester

RB211TriStar

  • Former member
Re: Why is it...
« Reply #2 on: December 15, 2009, 07:04:34 PM »
That people insist on trying to takeover the routes of other players...

is the the point of the game? is it really necessary?

lame.

if you want a price war, you've got one...

I tend to agree. I prefer to focus more on efficiency and profit. Others just pile metal on routes and flood capacity. It drives me up a wall but I guess its reality.

Give 'em hell! Unless of course its me!  ;D

ban2

  • Former member
Re: Why is it...
« Reply #3 on: December 15, 2009, 11:33:10 PM »
fact of life i'm afraid.  weather them out for a few years and you'll find they'll go bankrupt as soon as the c check season hits them for the second or third time.

Offline Sigma

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  • Posts: 1920
Re: Why is it...
« Reply #4 on: December 16, 2009, 12:45:25 AM »
The "point of the game" is whatever you choose it to be.

For some it may be just surviving to the end.
For some it may be operating the largest airline possible with the best utilization figure.
For some it may be making the most net profit in a quarter.
For some it may be moving the most passengers.
For some it may be having the highest net value.
For some it may be working cooperatively with 2 other airlines in your home airport
For some it may be running out every competitor in their home airport
For some it may be running out every competitor in their country.

It's entirely up to the individual player.  And sometimes those goals may conflict with yours -- i.e. you can't both be the #1-ranked airline for pax.  Or, you can't both get along at an airport if one of you has the goal of running off the other.

And, sometimes, since another player can't read your mind, he might worry about what your particular goal is and decide that it's safer to drive you out of business now then worry about it when you're a much bigger problem later on.

Offline razzbc

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  • Posts: 17
Re: Why is it...
« Reply #5 on: December 16, 2009, 01:01:39 AM »
do price wars have a real world effect, i.e. do the game customers notice?

RB211TriStar

  • Former member
Re: Why is it...
« Reply #6 on: December 16, 2009, 02:40:35 AM »
That's a good question. I once raised prices and my loads went up  ;)

Offline Sigma

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  • Posts: 1920
Re: Why is it...
« Reply #7 on: December 16, 2009, 04:21:43 AM »
do price wars have a real world effect, i.e. do the game customers notice?

Absolutely.  But it's not quite as elastic as the lowest price automatically wins.  Ignoring CI and RI, Equipment plays the largest role in my experience -- passengers prefer smaller (but not too small) planes over larger ones in a very considerable way.  Larger planes are great for density and therefore profit, but leave you open to what I call "sniping" by carriers using lots of small aircraft on a route as the pax will flock over there.  Frequency of flights would be a close 2nd -- the more flights per week, the more pax will prefer you.  Time of day is also big -- pax will choose a superior flight time over a better price most of the time.  Personally I use price competition as an absolute last resort and/or only as an introductory move to a new route because low pricing raises RI quickly.

And if prices on a route are low enough you can actually create a far amount of new demand as well.  Your analysts only give you estimated demand at the standard price.  But if you lower the price you can draw a lot more people to the route than your demand charts indicate because suddenly you've increased the market of people wanting to go on that route if the price is low enough.  With a perfect RI/CI and low enough pricing, you can actually push demand to as much as 150% of what the charts indicate.  Also, low pricing increases the rate at which pax growth occurs from year to year; so if you consistently offer lower pricing you will get faster growth than routes where pricing is consistently high.

This, just like in real-life, can actually be somewhat counter-productive if your goal is to take away pax from your competition.  Take prices too low, and your planes fill up with new customers, meanwhile your competitor's planes are still flying pretty full as well.  So all you managed to do is incur more costs with less revenue, which can actually impact you more than your competition.

Offline razzbc

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  • Posts: 17
Re: Why is it...
« Reply #8 on: December 16, 2009, 07:35:28 AM »
thanks all, very helpful... i closed my route to Brisbane which was ass-raping me, the others are all now quite healthy thanks to some tweaking...

mykalberta

  • Former member
Re: Why is it...
« Reply #9 on: December 16, 2009, 09:24:17 PM »
I tend to agree. I prefer to focus more on efficiency and profit. Others just pile metal on routes and flood capacity. It drives me up a wall but I guess its reality.

Give 'em hell! Unless of course its me!  ;D

Its not reality. If a plane flies with 50% capacity in the "real world" that plane is losing money. It is expected early in the route development cycle, but after 6  months or so airlines will drop those routes cause they lose money unless they are supported with cargo (doesnt exist) or first / biz service.

Offline razzbc

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  • Posts: 17
Re: Why is it...
« Reply #10 on: December 17, 2009, 03:19:59 AM »
well, i lied, the c check did me in thanks to the money i had lost... this a*** came along two seconds after i placed an order for a brand new jumbo jet...

very discouraging....

RB211TriStar

  • Former member
Re: Why is it...
« Reply #11 on: December 17, 2009, 03:21:28 PM »
Razzbc, keep fighting!!!

Its not reality. If a plane flies with 50% capacity in the "real world" that plane is losing money. It is expected early in the route development cycle, but after 6  months or so airlines will drop those routes cause they lose money unless they are supported with cargo (doesnt exist) or first / biz service.

It IS reality. Both in the game and in the real world. If an airline's cash flow and profit are high enough, there's nothing stopping them from throwing metal on a route whether it makes money or not. To them, it could be worth the losses just to drive out competition.

Again, I don't believe in that model but that's not to say you can't do it.

tristar

  • Former member
Re: Why is it...
« Reply #12 on: December 17, 2009, 06:10:25 PM »
As a new player i experinced the same problem within a week (real time)
With only 2 aircraft in my fleet, a competitor forced me to go out of business.
My LF droped from 50% to 20% in a day.
I restarted the game at an other location.


Offline Unbornio

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  • Posts: 662
Re: Why is it...
« Reply #13 on: December 18, 2009, 07:20:29 AM »
As a new player i experinced the same problem within a week (real time)
With only 2 aircraft in my fleet, a competitor forced me to go out of business.
My LF droped from 50% to 20% in a day.
I restarted the game at an other location.



Report that to Sami for investigation. If he sends for example..  500%  capacity to your routes ONLY, that's cheating.
Beta Tester

ReedME

  • Former member
Re: Why is it...
« Reply #14 on: December 25, 2009, 12:41:17 PM »
Hey Razz, I take it you tried to base yourself in Australia somewhere?? Keep in mind that because the population of Australia is so small it is really hard to get a strong foothold ;)

 

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