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Author Topic: Discount tickets  (Read 488 times)

Offline Simunic

  • Members
  • Posts: 180
Discount tickets
« on: February 16, 2012, 09:50:52 AM »
I have searched the forum and found that most people say that discounts have no influence but instead flight frequency, CI and RI are the things that are important. But if all these or two out of three are in your favor could discount tickets give you an extra advantage over competition? Together with better seating.
Is it just cosmetics? Could it be used to "kill" the competition or at least make their flights as unprofitable as possible (I know some pax will go to them no matter what I do).
I tried but couldn't find a clear answer on the forum.

Thanks



Offline schro

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  • Posts: 3072
Re: Discount tickets
« Reply #1 on: February 16, 2012, 02:39:12 PM »
It depends on how you define advantage - if you mean by flying more profitably than your competitor, discounting probably won't help much with that. If you mean by having a higher market share than your competitor, it will help with that. Better seating will help your load factor, but probably not your bottom line profit.

As far as "killing"  your competition, if you annoy them on a few routes, it probably won't do much to them unless they're not very good at managing their airline. Things get tough when an airline has strong competition on every route it flies though...

Offline Simunic

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  • Posts: 180
Re: Discount tickets
« Reply #2 on: February 16, 2012, 03:30:10 PM »
Thanks,
I am gonna experiment with all these parameters and try to find the combination that gives me the best results. :)

As for "killing" part, I don't want them to BK, just to go and find a more profitable route :)

Offline schro

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  • Posts: 3072
Re: Discount tickets
« Reply #3 on: February 16, 2012, 03:55:20 PM »
At the moment, due to low fuel prices, just about all routes are profitable. I don't think anyone will start fleeing due to competition until fuel goes up a few hundred bucks...

 

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