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Author Topic: Tweaking the prices  (Read 612 times)

Offline Simunic

  • Members
  • Posts: 180
Tweaking the prices
« on: September 15, 2012, 10:48:34 PM »
Hello,
I just started some fine tuning of the prices on some routes where i am the sole carrier. I was wondering if anyone has any experience with this. How many percent can I increase the price before people refuse to fly? Also I have some routes where i have 100% load. If I understood correctly that means that I am selling it cheap?
I appreciate any comment on this.
Thank you

Offline LemonButt

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  • Posts: 1895
Re: Tweaking the prices
« Reply #1 on: September 15, 2012, 10:54:43 PM »
100% is not bad unless you are getting it 7 days/week and you only have 1 flight to the destination.  If you have multiple flights on the route and they are all getting 100% LF, then yes, this is bad.  As far as I know, the ideal pricing to maximize profits is somewhere between -10% and +10%.  Any more or less then the change in pax starts hurting your bottom line.

Offline Simunic

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  • Posts: 180
Re: Tweaking the prices
« Reply #2 on: September 15, 2012, 10:59:47 PM »
For now I started with 5% increase on routes where I have monopoly, just to see what happens. I think I have some bad ones with multiple flights on 100%. I'll have to try to optimize that, uhh, some micromanaging I guess.
Thanx for the reply 

Offline EsquireFlyer

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  • Posts: 1327
Re: Tweaking the prices
« Reply #3 on: September 15, 2012, 11:27:26 PM »
You should be able to increase it to about +20% ~ +40% depending on the specifics of each route, supply level vs. demand level, and your CI and RI.

exchlbg

  • Former member
Re: Tweaking the prices
« Reply #4 on: September 16, 2012, 12:30:33 AM »
If you get 100% on a route you are definitely too cheap and canīt find out how people react if you lower fares. I would try to keep it between 80-90 to get those additional passengers that might show up. So itīs all about trying out and micromanagement to squeeze out all you can .
« Last Edit: September 16, 2012, 12:32:54 AM by exchlbg »

Offline Simunic

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  • Posts: 180
Re: Tweaking the prices
« Reply #5 on: September 16, 2012, 12:45:07 PM »
Yes, well my 5% increase seams not to have any negative influence, si I'll push a little bit more. If I can go up to 20% or more on routes without competition its great.
Thank you everybody

Offline ArcherII

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  • Posts: 1935
Re: Tweaking the prices
« Reply #6 on: September 16, 2012, 03:40:19 PM »
Uncontested routes can be charged up to 55% (at least my experience). But do it in small increments, ie. 5%-10%. 

Offline Simunic

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  • Posts: 180
Re: Tweaking the prices
« Reply #7 on: September 16, 2012, 08:48:37 PM »
Well just to report that my tweaking resulted in a 50% increase of my weekly profit and my overall LF dropped for 2%. I still have to monitor the situation a bit to verify how much of this is really the result of the price adjustments I made since I also did some rationalization moves, but I would say that it is going in the right direction.

55%?? wow, I have a few routesI would love to try that on :))
« Last Edit: September 16, 2012, 08:50:44 PM by Simunic »

 

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