AirwaySim
Online Airline Management Simulation
Login
Username
Password
 
or login using:
 
My Account
Username:
E-mail:
Edit account
» Achievements
» Logout
Game Credits
Credit balance: 0 Cr
Buy credits
» Credit history
» Credits FAQ

Author Topic: Losing Market Share  (Read 605 times)

skiingstevie

  • Former member
Losing Market Share
« on: April 29, 2011, 02:11:40 PM »

Hi,

I'm flying a route of 605 nm using three B737-400s, six times daily against a competitor who is flying twice daily with a B737-500.  I am charging default rates, my CI is trending up as is the RI and I'm marketing heavily as I'm making good money.

Until recently I had 100% market share on the route, however, within the last week I have lost about 6% to my competitor.  I have not changed anything as all was going very well.

Does anyone more knowledgeable than me know, or can offer an idea, why this is happening?  And can you offer me advice on fixes to the problem?

Many thanks.

Offline ArcherII

  • Members
  • Posts: 1935
Re: Losing Market Share
« Reply #1 on: April 29, 2011, 04:30:28 PM »
So you're offering 6x daily with a B734 and your competition is offering 2x daily with a B735, and you once had 100% of market share but now you have 6% less...What's the problem?

You'll lose market share obviously as some people will take his plane and not yours, pretty much what would happen IRL.

Offline JumboShrimp

  • Members
  • Posts: 5992
Re: Losing Market Share
« Reply #2 on: April 29, 2011, 04:35:32 PM »
When noone else if flying, of course you get 100% of the market share.  And when someone else just shows up, he will pick up some market share - just for being there.  That's normal.

If you have 6 flighs and your competitor has 2 flights, everything else being equal, the market share will have a tendency toward you having 75%, you competitor 25%.

Another thing to consider is that the market share shown is not for a given day.  It is an average of about 2 weeks.  So your competitor may already have more than 6%.  You need to wait 14 days to know what percentage he truly has.

As far as what you can do to prevent the erosion?  Not much.  You can try to drive your competitor out of business, making sure that he is losing money on all his routes...

 

WARNING! This website is not compatible with the old version of Internet Explorer you are using.

If you are using the latest version please turn OFF the compatibility mode.