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Author Topic: Does Load Factor Increase Faster Due To Scarcity?  (Read 310 times)

Offline Nihilian

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Does Load Factor Increase Faster Due To Scarcity?
« on: December 24, 2015, 11:49:22 AM »
Just wanted to check if load factor increased faster keeping other things like competition, pricing and advertsing constant if there was greater scarcity

I.e. If I had a route demand of 1000 and I scheduled to deliver only 250 seats, would the load factor on that particular flight build up faster than if I had two flights of 250 capacity each servicing the sector. This is keeping all other elements like competition, pricing and advertosing constant.

I would think it should not make a difference because in both cases there is still a significant smount of unfulfilled demand but wanted to check.

Offline legospoorbiels

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Re: Does Load Factor Increase Faster Due To Scarcity?
« Reply #1 on: December 30, 2015, 02:11:49 PM »
Yes when you have a lot more demand then supply the load factor will be quite high to begin with and they will increase quick.
When you have more planes flying the same route however (or the same plane 2/3 times a day) the route image will go up quicker.

Offline schro

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Re: Does Load Factor Increase Faster Due To Scarcity?
« Reply #2 on: December 30, 2015, 05:50:56 PM »
Le sigh. The number of seats that you supply in a route does not impact how many tickets to you will sell. Please note I'm not refering to load factor, but seats sold. Load factor is a calculation of seats sold divided by seats available and is not a good metric for determining what you want to do. Second, RI does not increase faster with multiple flights per day.

So, to answer the question, on a 1000 demand route, when you start it with an ri of 0, you will be able to sell 200-300 tickets at the very most. Therefore, if you supply 250, you'll have full planes within a week or two of starting the flights. However, if you supply 500 seats, you will still sell the same number of tickets and have half your seats empty.


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