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Author Topic: Lowering Prices leads to Lower LFs?  (Read 709 times)

DenisG

  • Former member
Lowering Prices leads to Lower LFs?
« on: May 30, 2012, 08:33:57 AM »
Hi folks.

Perhaps I have missed something: As I lower prices on competed routes, my LFs drop significantly. First I thought perhaps coincidentally, my competitor just did the same by chance around that game week. But then I retried it twice and it led each time to a significantly lower LF. Was there some change that I missed? Or similar experiences?

Thanks.

Cheers,
Denis

Offline Airbus101

  • Members
  • Posts: 334
Re: Lowering Prices leads to Lower LFs?
« Reply #1 on: June 04, 2012, 12:50:09 AM »
Note: Edit... never mind
I deleted post info...
I was doing a study but my data was flawed
« Last Edit: June 04, 2012, 04:28:52 AM by Airbus101 »

737Capt

  • Former member
Re: Lowering Prices leads to Lower LFs?
« Reply #2 on: June 08, 2012, 01:09:39 AM »
Hi folks.

Perhaps I have missed something: As I lower prices on competed routes, my LFs drop significantly. First I thought perhaps coincidentally, my competitor just did the same by chance around that game week. But then I retried it twice and it led each time to a significantly lower LF. Was there some change that I missed? Or similar experiences?

Thanks.

Cheers,
Denis
Dropped my ticket prices 15% percent on a high demand route with lots of competition and did not seem to make any difference in load factor.

brique

  • Former member
Re: Lowering Prices leads to Lower LFs?
« Reply #3 on: June 08, 2012, 03:51:14 AM »
Dropped my ticket prices 15% percent on a high demand route with lots of competition and did not seem to make any difference in load factor.

I have a similar issue on a particular route I run, if I drop prices by 15% or even up to 25%, the LF remains pretty much the same. I'm assuming the other variables are at work (CI, RI frequency and whatnot), and any improvements I make are being matched or exceeded by my competitor, who is a much bigger and also a much older airline.

That said, I'm still making $$'s on the route using the last of my old fleet until they get replaced, so its not all bad news in such cases.. guess sometimes you just have to take 2nd place and just mop what pax are left to you.

 

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