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Author Topic: Why such a ticket sale fluxuation?  (Read 1886 times)

tm07x

  • Former member
Why such a ticket sale fluxuation?
« on: January 22, 2010, 08:49:51 AM »
I don't understand how the ticket sales can jump from 4.7 to 7 and back to 4? granted April hasn't ended yet I still am not gonna be able to sell 7 million worth in tickets on the week left of April.

Offline Daveos

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  • Posts: 2983
Re: Why such a ticket sale fluxuation?
« Reply #1 on: January 22, 2010, 01:36:39 PM »
Normally I would suggest it was to do with competitors at your airport, maybe one of them had aircraft in maintenance.  I had a look at your routes, though, and you don't really compete on many routes, so my only other reason is the marketing.  Your marketing budget for March is more than twice that of February.  I'd bump your marketing back up again, as you can see with 1 million more a month, you make over 2 milion back :)

Dave
« Last Edit: January 22, 2010, 01:39:27 PM by Daveos »

hybridace101

  • Former member
Re: Why such a ticket sale fluxuation?
« Reply #2 on: January 22, 2010, 01:54:12 PM »
Normally I would suggest it was to do with competitors at your airport, maybe one of them had aircraft in maintenance.  I had a look at your routes, though, and you don't really compete on many routes, so my only other reason is the marketing.  Your marketing budget for March is more than twice that of February.  I'd bump your marketing back up again, as you can see with 1 million more a month, you make over 2 milion back :)

Dave

Also, did some of your aircraft go for a B/C/D check?  A B check comes once every 5 weeks and lasts for 24 hours.  A C check can last upto 3 weeks depending on the aircraft but is required annually.  A D check lasts 2-3 months depending on the aircraft but is required only once every 8-10 years.  Remember, not only will the aircraft concerned be grounded from revenues, you will be charged a nominal maintenance cost and it will still be considered as lease time. 

Moving forward, for aircrafts whose D checks are fast approaching, especially if they are more than 15 years old (where the maintenance costs are very high), you may want to consider pre-terminating the lease and getting a newer aircraft 15 days before the D check and terminating your lease immediately when you receive the new aircraft.  If the 4-month required prepayment of the prospective aircraft as well as the pre-termination cost combined is cheaper than the maintenance cost for the D check, then it would be wiser to pre-terminate. 


Offline Sigma

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  • Posts: 1920
Re: Why such a ticket sale fluxuation?
« Reply #3 on: January 22, 2010, 02:10:21 PM »
You guys are thinking about it too hard. :)

Notice that it isn't just a fluxtuation of ticket sales... everything went up by the same amount.  Fuel, Salaries, Marketing, everything.

It's because "Months" in the game aren't calendar months, they're simply a collection of weeks.  Since there's 12 months but 52 weeks, there's 4 months (1 per quarter) that get 5 weeks of results while the others get 4.  So every 3rd month is higher across the board.

Offline Daveos

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  • Posts: 2983
Re: Why such a ticket sale fluxuation?
« Reply #4 on: January 22, 2010, 02:40:12 PM »
 :laugh: Ah, great shout Sigma.  I feel like I should have noticed that  :-[

tm07x

  • Former member
Re: Why such a ticket sale fluxuation?
« Reply #5 on: January 23, 2010, 04:11:14 AM »
Thanks a lot guys for replying.
Yeah it must surely have been the extra week or so.

But I'm thinking I should spend more on marketing, but I don't wanna go into the red on marketing.

None of the AC have been to C or D checks. I won't be leasing the older aircraft that long,
figured it's a lot cheaper to lease direct from the manufacturer. about 100k cheaper a month,
and you get a brand spanking new plane.

The C checks aren't up for a while either. I now have 4 aircraft. Maybe don't sound like a lot.
But I'm making a profit, the lease for the 4th aircraft hasn't kicked in yet, but I should be able to turn over some profit after everything
is said and done.

The real  question is, do I spend more on marketing?

tm07x

  • Former member
Re: Why such a ticket sale fluxuation?
« Reply #6 on: January 23, 2010, 04:13:18 AM »
here are the numbers...

Offline Sigma

  • Members
  • Posts: 1920
Re: Why such a ticket sale fluxuation?
« Reply #7 on: January 23, 2010, 04:41:18 AM »
Whether you need to spend more on Marketing actually comes down to a very simple question....

Is your CI going up?

As long as your CI is going up, you're spending enough.  All spending more on Marketing does is increase the rate at which it goes up.  If you're satisfied with its growth, then you're fine.  If it's going down you really need to up the spend.

If a CI of 100 is where you're headed too though (you don't necessarily have to if you don't want) be advised that it is much cheaper to get CI up sooner rather than later.  If you're making sufficient profit and want to up the spend to make it move higher sooner, then go ahead.

All that said, you're making a margin of about 5% to maybe 10%.  I wouldn't worry about upping my Marketing expenses unless my CI was decreasing.

tm07x

  • Former member
Re: Why such a ticket sale fluxuation?
« Reply #8 on: January 23, 2010, 05:39:15 AM »
see, that's the problem. the CI is dropping... or has dropped... it was above 30, and then dropped to 28 or so... I tried local marketing, but it didn't prove to be very effective vs the money I was spending. Since most of my routes aren't state local. or atleast not the return flights.

I upped the marketing to see if it gives me any results.

Offline Sigma

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  • Posts: 1920
Re: Why such a ticket sale fluxuation?
« Reply #9 on: January 23, 2010, 05:43:06 AM »
see, that's the problem. the CI is dropping... or has dropped... it was above 30, and then dropped to 28 or so... I tried local marketing, but it didn't prove to be very effective vs the money I was spending. Since most of my routes aren't state local. or atleast not the return flights.

I upped the marketing to see if it gives me any results.

The "type" of Marketing means absolutely nothing.  "State-wide" marketing isn't literally State marketing.  It's simply a "level".   You can just as easily think of it as Marketing Levels 1, 2, 3, 4, 5, etc.   The higher the level the more money you spend.

If the Marketing wasn't effective it simply wasn't a sufficient dollar amount of spend.

Marketing expense is a function of the number of routes.  The more routes, the more you need to spend on Marketing to get your CI up.  So an airline that flies to hundreds of small locations may need to spend literally 40%+ of their revenues on Marketing alone to get to a CI of 100.  An airline that flies to a very few but very dense routes might be able to get to 100CI while only spending 2% of their total revenues.

tm07x

  • Former member
Re: Why such a ticket sale fluxuation?
« Reply #10 on: January 23, 2010, 05:45:27 AM »
I have about 8 destinations. Most of them direct... a couple are W routes.

tm07x

  • Former member
Re: Why such a ticket sale fluxuation?
« Reply #11 on: January 23, 2010, 05:49:06 AM »
so... you can use TV, Radio, Billboards and Internet on "local" marketing, and it'll be just as effective as just billboards nationwide?

 

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