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Author Topic: Company Image falling - Despite 3 mill + in Marketing  (Read 700 times)

Offline ajalil

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Company Image falling - Despite 3 mill + in Marketing
« on: December 04, 2014, 11:54:14 AM »
Hi,

When there are several airlines operating on the same route, and my route image is 100%, it is the company image that makes people select my airline right?

My company image is falling despite 3 million + in marketing. Although I can always set aside more money for marketing, but I don't understand I was around 50 +/- 5 for a long time, and suddenly it started falling. I have not checked if this has to do with maintenence, cancellations, new base opening or other factors...

Any advice? Thanks.
Regards,

Ajalil

Offline ajalil

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #1 on: December 04, 2014, 05:19:42 PM »
Latest update:

Image increasing rapidly with Base Country marketing on all channels. But costing 6 mill+ in marketing cost per week.
Again, my question to CI/RI has effect on what airline pax choose to travel the route or is it solely the price you choose?
Regards,

Ajalil

Offline Kadachiman

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #2 on: December 04, 2014, 06:46:59 PM »
CI and RI are only two of the many factors that affect what airline pax chose - high influence

Some other factors are -
Frequency of flights - high
Seat configuration e.g high density vs. standard, especially for longer distances - medium
pricing - medium
correct aircraft e.g. no too small warning - medium
dep & arrival times e.g. no times between 23:00 hrs and 05:00 hrs - high
« Last Edit: December 04, 2014, 06:49:57 PM by Kadachiman »

Offline ajalil

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #3 on: December 04, 2014, 07:04:13 PM »
Ok, thanks

So supose I have a route BGO - LHR
When I created the route there was only me flying the route, and pax demand is about 90. I found out that a half full A320 156y config, generates just as much revenue as a full ATR42 with 50y config. So I chose to fly with A320. Now that a competitor is flying the route with a Dash 8, 52y config even selling at a low price of 49 usd my flight is only 30%, even though we both have only one flight and i am operating with a jet..

Suggestions?
Regards,

Ajalil

Offline Kadachiman

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The person who likes this post:
Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #4 on: December 04, 2014, 10:22:53 PM »
Everything else being equal between competitors e.g. same CI same RI, etc, etc...(which it never is) then  30% - 40% for your A320 is about right or maybe slightly low

156 + 52 seats = 208 seats for 90 pax (average)
So you should get 3/4 of the pax and he should get 1/4
90 x 0.75 = 67.5 pax for you
156 seats / 67.5 pax = 43% to 44%
example - while Mon, Tues, etc may have 100 pax demand Sat & Sun may have only 70 pax demand so your % on those days will be lower, which brings down the weekly average LF

Many reasons for it all not being equal -
- he may have his Y seating in Premium configuration, ticket prices at -10%, marketing on the route, etc, etc
- if it is a short route the entire trip BGO-LHR-BGO may be only slightly longer in a prop than a jet, making the jet advantage non-existent
- if you have no Business class into Heathrow (which has a high demand in C Class) and he does, that will also give him an advantage in overall pax numbers on his Y class as well

BUT - No-one can give you a definite answer as the game programming is not known to a finite degree for a good reason, otherwise everyone would maximise seating, etc, to match the programming codes

Offline Kadachiman

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #5 on: December 04, 2014, 10:30:36 PM »
However basically you fell into a hole that many players do

oversupplied the route with a bigger plane which may be OK with no competition, but as soon as competition comes along (which it always does sooner or later) then you go from a positive route income to a negative route income

a few options -
- ditch the route (not wise if it is into LHR as slots become very scarce there and demand normally increases over time)
- reschedule route to a smaller plane e.g A318 preferably (as that is the same fleet type as the A320)
- be happy with a small profit or small loss until demand grows
- an d other options that I have mentioned in prior posts re pricing, marketing, etc

Offline ajalil

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #6 on: December 05, 2014, 09:47:16 AM »
OK Thanks,

I will try to operate the route with a smaller Aircraft.
I tried that strategy with many departures with a smaller plane on my route TOS-BOO (Demand 300+), where I have 6 flights a day with ATR42, instead of upgrading the base and running A320.

Unfortunately all flights are running with 55-65% LF, but it is gradually growing with route spesific marketing.
Regards,

Ajalil

Offline ajalil

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #7 on: December 05, 2014, 04:05:20 PM »
Thanks Kadachiman,

I just wanted to give you feedback. I tried operating BGO-LHR-BGO route with "default" price but changed Aircraft config to 114y Economy Premium instead of high density 156y, and load factor seems to be increasing gradually. I know it will never be full, but it seems like passengers are choosing comfort, and I am generating more revenue then when I was fighting to keep the passengers by lowering price.

Taking this into account I have started upgrading all my aircrafts to Economy premium seats. Although investment maybe higher then what I can recover during the remaining game period, it is still good try and error situation, and now I will try to open routes where demand is break-even and see if I can steal some of market-share on those routes.
Regards,

Ajalil

Offline Kadachiman

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #8 on: December 05, 2014, 05:09:10 PM »
Y Seating -
High Density seating is OK up to approx 600 Nm - but remember if competition comes on your routes you will lose some pax - minimal
Standard seating is good
Premium Economy, etc is a waste of money in this game as it gives very little if any advantage over Standard seating

However trying different things and observing the results is what Beginner Games are for

Ask for a Mentor and I will accept if you want me to take a closer look at your airline

Online Adam42185

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #9 on: December 06, 2014, 12:55:25 AM »
How much can you offset the small aircraft long route issue with better seating?  If the entire plane is premium seating, how much does that help?  I'm thinking of US-Western Europe on routes with lots of carriers, but the number of flights compared to the demand indicates that you could fill say an A321 with a more premium cabin.

Offline gazzz0x2z

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #10 on: December 06, 2014, 06:55:38 AM »
How much can you offset the small aircraft long route issue with better seating?  If the entire plane is premium seating, how much does that help?  I'm thinking of US-Western Europe on routes with lots of carriers, but the number of flights compared to the demand indicates that you could fill say an A321 with a more premium cabin.

It is entirely dependant on opposition. I have successfully led transatlantic routes with bombardier CRJs & normal seating(in current GW3). As long as noone went with a bigger craft, it is making money. Im am now flying a not much bigger A148, still with success. It only works because demand is too low for anyone trying to fly an A320. But if someone does anyways, I'll just have to find another destination. I cannot compete.

Note that I'm using premium seating on some lines, but that's because I'm at the extreme limit of the A148E range I can fly only 60 seats anyways, so the standard 70 seats configuration is no use to me. Tries I've made with 737 from Glasgow to West indies with premium seating were all failures.

Offline ajalil

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #11 on: December 07, 2014, 08:20:29 PM »
Thanks Kadachiman, I have set in a mentor request.

CI increased to about 50, but as soon as I stopped 6 million marketing, it started falling again, but I can't loose money all the time on marketing.

So far it looks like company image is stable around 35 with marketing for 1 million + per week. For any more marketing then this, I start loosing money and I already have a lot of loan. Right now My airline is generating a little revenue each week (around a million each week), So i am going to let it run for a few weeks in sim time to pay back som loan before I start investing further in CI, base airports etc.

My routes are also working up, most routes are 90+ LF and lowest LF routes are around 50-60, but they are all making positive money (some as low as 1000) but alteast I'm not loosing any money on running the routes. LF is increasing on these routes like 0,3% each week..

Though increased LF may also be a result of chaning most aircraft (A320) to 115 seats economy premium instead of high density 156.
I have also changed my ATRs from 50 HD seats, to 44 premium. This has also increased range of aircraft.

For a few A320s I have introduced Business Class seats, 100Y premium 6C Preimum busienss. And business cabin is filling up on most routes.

How ever I have noticed that if a route has a demand of 80pax I can operate the route with A320 (156y) and still make more money then running one ATR for some reason. Typical ATR 50Y with 98%LF makes 15000 per flight, while 60% A320 156y makes 25000 per flight. I can't understand why, coz A320 uses more fuel, and have higher handling /landing fees.
Regards,

Ajalil

Offline gazzz0x2z

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #12 on: December 08, 2014, 07:50:01 AM »
(.../...)
My routes are also working up, most routes are 90+ LF(.../...)

It means they are underprized. Slowly but surely increase the price of those routes. Until they reach a more standard(and more profitable)85%.

Offline ajalil

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #13 on: December 08, 2014, 11:56:35 AM »
Most of my routes, As soon as I adjust prices up, the LF and total profit falls down really quickly. I have tried to mange prices manually by increasing from 165 to 169, then next time from 169 to 175.. and 175 to 179 etc... to increase just a little at a time.

This route (attachement) has no competition, still passengers do not want to travel when ever I increase the price.
Regards,

Ajalil

Offline Kadachiman

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #14 on: December 08, 2014, 09:02:20 PM »
You may have to send a Mentor request again as I have not received a system message saying that you have requested a mentor.
All mentors get a system generated message which they can then accept.

Offline ajalil

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Re: Company Image falling - Despite 3 mill + in Marketing
« Reply #15 on: December 11, 2014, 02:40:08 PM »
I cannot find any option to cancel mentor request. I still have no active mentors assigned, I can send it again, but is there a time when mentor request is automatically cancelled or must I do it myself?

I would be glad if you took a look at the routings/prices/advertizing, I just used 2 month full advertizing, and company image incresed from somwhere 23 to 49, and as soon as advertizing (for 7 million +/week) finished, image started falling, I still have advertizing for almost 2 million /week, so that it does not fall so fast.

I have been gradually increasing prices now on the routes, and I have also introduced new fleet group for longer routes with low demand (+/- 50pax) with ERJ.
Regards,

Ajalil

 

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