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Author Topic: Fare Increases  (Read 547 times)

mean123

  • Former member
Fare Increases
« on: August 25, 2012, 09:35:38 AM »
Hi Guys,

How often should you increase your fares, I am currently increasing by 1% 2 to 3 times per year, whether I have competition or not. any tips on whether I should be doing this less or more often?

Thanks
Gary

brique

  • Former member
Re: Fare Increases
« Reply #1 on: August 25, 2012, 09:47:35 AM »
It depends how much work you want to do and how often : common practice is to reset to default every day or two (real world) : this gives you the inflation-based price increases.

But if you have uncontested routes, you can now push yr prices up by a surprising amount and still keep your LF's high. Also, having lower prices on heavily contested routes does seem to be effective too, with the recent changes brought in for MT#7. Of course, this means you cant just hit reset to default without lowering/raising all those prices and then having to go into each route to set them higher/lower again : in which case, using the percentage increase every quarter (I use weeks 13/26/39/52) works well and is a lot quicker/easier to do.

You will still need to keep an eye on things and do the occasionally tweak when an overall % increase tips the scales and starts to affect maybe one or two thinner routes badly.


Offline Sami

  • Administrator
  • Members
  • Posts: 14535
    • AirwaySim - Are you the next Richard Branson?
Re: Fare Increases
« Reply #2 on: August 25, 2012, 09:52:26 AM »
Forget inflation, and look at the load factors and route profits. Aim for maximum profits (usually that is a LF between 75-90%).

In other words charge the maximum possible prices that still gives you a decent LF, and do not aim for 100% LF as that means you are selling it too cheaply.

mean123

  • Former member
Re: Fare Increases
« Reply #3 on: August 25, 2012, 09:56:16 AM »
Thanks Guys, most of my routes are at 80-98% LF just wanted to make sure that wouldnt decrease.

brique

  • Former member
Re: Fare Increases
« Reply #4 on: August 25, 2012, 10:12:25 AM »
Forget inflation, and look at the load factors and route profits. Aim for maximum profits (usually that is a LF between 75-90%).

In other words charge the maximum possible prices that still gives you a decent LF, and do not aim for 100% LF as that means you are selling it too cheaply.

I agree with you Sami : but it can be time-consuming going into each route, then tweaking it up and down, checking the result of that, then re-tweaking again until you find that magic point of maximum profitability. Sometimes its easier to just set a 'fleet' standard of price v. LF that achieves a satisfactory, if not perfect, profit level, especially if you are a time-limited player.

Of course, if there was a way for a player to 'fix' their own 'default' price per route, allowing the 'reset' button to go to that, rather than the systems default price ; then it would allow for a much more efficient way to achieve overall price movements using the 'increase/decrease all price by x%' function.

oh dear, I feel a feature request coming on...

Offline Sanabas

  • Members
  • Posts: 2161
Re: Fare Increases
« Reply #5 on: August 25, 2012, 10:27:42 AM »

brique

  • Former member
Re: Fare Increases
« Reply #6 on: August 25, 2012, 10:53:26 AM »
http://www.airwaysim.com/forum/index.php/topic,41659.0.html add to that one.  ;)

thankee kindly, good sirrah... saves all that searching malarkey... :)

 

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