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Author Topic: Should I lower the prices?  (Read 274 times)

Offline ajalil

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  • Posts: 61
Should I lower the prices?
« on: December 26, 2014, 03:22:24 PM »
Case Scenario:

Demand from A 2 B = 200 pax
My supply = 44 pax (ATR 42)
LF gets to 99% so I start increasing prices to maximize revenue (as I have read that optimum LF is from 80-90 to maximize revenue)

Competitor comes in with 100 seats supply  during the process and my LF and Revenue starts falling with 10-15% each week (right now around 70%)
Even though demand is more then supply, should I decrease my prices to get some LF back or should I just let it be, and pax will slowly return back?

Se an example of scenario below...



Online gazzz0x2z

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  • Posts: 1292
Re: Should I lower the prices?
« Reply #1 on: December 26, 2014, 03:39:48 PM »
There is still plenty of place. If RI is 100 & LF above 70%, no need to lower the prices.

Offline Teadaze

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  • Posts: 775

The person who likes this post:
Re: Should I lower the prices?
« Reply #2 on: December 26, 2014, 09:44:20 PM »
don't lower. Problem is the public (demand) does not know your airline exist :)
just wait for them to grow.


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