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Author Topic: Seating Demand  (Read 663 times)

CSCCorp

  • Former member
Seating Demand
« on: April 11, 2013, 07:02:21 PM »
I see a lot of routes that are filled far past the seating demand and don't know why. I saw one that had 1000 available seats and only two to  five hundred seat demand. I always thought that it was a total seating demand and that anything over it wouldn't make money but now that I'm out of the demo and see so many airlines doing it I'm second guessing. Is the seating demand just for each flight or is it as I thought, as a total number?

Offline AIRmoe

  • Members
  • Posts: 45
Re: Seating Demand
« Reply #1 on: April 11, 2013, 08:02:18 PM »
I second this question! Anyone with an answer please?

Offline dmoose42

  • Members
  • Posts: 1264
Re: Seating Demand
« Reply #2 on: April 11, 2013, 08:26:23 PM »
Seating demand is the total available seats to be filled on a given route.  Available seats is the sum of the supply provided by the various airlines serving that route.  The reason available seats can exceed demand is because airlines can still be profitable with less than 100% load factors; as a result airlines will supply (in aggregate) more than demand.  Additionally, single airlines may choose to serve more than the demand to deter other airlines from serving that route (at the cost of potentially somewhat lower profitability).

Hope that helps.

exchlbg

  • Former member
Re: Seating Demand
« Reply #3 on: April 11, 2013, 09:09:01 PM »
That leads to question how PAX allocation works. Basically PAX are spread over all offered service equally. So many small planes have advantages over one big.
Second step of that process takes many more valuables into account, like fare, flight times and duration,RI/CI and some more to change that allocation for bonus and malus values.
So it may make sense to oversupply route seatwise to win the greatest part of them.
Sometimes good offers  (mainly good fares) make more people fly than prognosed (10-20%).
Sometimes it is just keeping opponents from getting good revenues, if your business can easily cope with losses.
Sometimes people just canīt calculate.
To OP: I would have suggested to experiment a bit more with that game in Beginnerīs World. Jet Age is one of the hardest scenarios, because of low traffic numbers and saturated markets.Thatīs another reason for oversupply situation, very hard to find a good spot for a startup.Itīs going to be tough.
« Last Edit: April 11, 2013, 09:24:48 PM by exchlbg »

Offline AIRmoe

  • Members
  • Posts: 45
Re: Seating Demand
« Reply #4 on: April 11, 2013, 11:11:24 PM »
Ahah that makes sense now. Thank you for your insightful remarks and answers.

 

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