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Author Topic: Price flexibility - demand at high fares  (Read 530 times)

11oceans

  • Former member
Price flexibility - demand at high fares
« on: December 22, 2013, 09:12:54 PM »
I am considering introducing much smaller aircraft on some of my routes at a considerably higher fare. Can I assume that I can press up Y fares drastically and still attract some upper-segment potential, "a few business people paying for the whole flight"? Or will there be no upmarket potential if route demand data shows there is no C or F class demand on that particular route? I am not sure how the game engine handles this.

Offline Sami

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Re: Price flexibility - demand at high fares
« Reply #1 on: December 22, 2013, 09:19:12 PM »
If the route is much underserved you can increase the prices considerably ..

(was just testing in one scenario where route had ~1000/day demand, and I was the only airline with about 300 seats/day and +30% to prices didn't really make any difference to the LF (= ~full)   .. but when you got competition or serve the full demand, the situation is of course different)

exchlbg

  • Former member
Re: Price flexibility - demand at high fares
« Reply #2 on: December 23, 2013, 01:06:53 AM »
There will be no C/F PAX if demand graphics don´t show demand for those classes, whatever you do.The more underserved a route is, the higher is the price tolerance of PAX of all classes.

 

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