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Author Topic: Low load factor issue, Why is this happening?  (Read 289 times)

Offline mrh777

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Low load factor issue, Why is this happening?
« on: August 13, 2016, 08:40:30 PM »
Hello,

I am flying KJFK-RCTP with 6x per week A380 service, I have 100 route image on this route and I am not grossly oversupplying the route, however I am only able to achieve 60% load-factor. The pricing is the default when opening this as a new route.

Any ideas why this is occuring?

Thanks

Offline gazzz0x2z

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Re: Low load factor issue, Why is this happening?
« Reply #1 on: August 14, 2016, 06:25:49 AM »
Indeed, surprising, dear direct opponent. Your scheduling is not optimal on the first leg(2325-0525), but penalty should be minimum(it's not between 0000 and 0455, and it plays less on long routes), and your second leg(0840-1115) should have no penalty at all. Seen from outside, I don't see anything else. Your company image at 70, while little low for such a route, should not be a problem big enough to explain your problems.

What is your exact seat config? Does it roughly match the demand structure(roughly 500-50-10, from what I see)? And is your LF even between seating categories? I see you have 537 seats, the standard is 525(with a repartition that is unfit for that specific route, too much first, not enough business), so you're not at the standard. Be sure not to fly hi-density.

Offline mrh777

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Re: Low load factor issue, Why is this happening?
« Reply #2 on: August 15, 2016, 12:47:33 AM »
My configuration is close to what the route is demanding, is there a large penalty for using high density seats? The load factor is equally low across all classes.

Offline gazzz0x2z

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Re: Low load factor issue, Why is this happening?
« Reply #3 on: August 15, 2016, 08:35:48 AM »
High density is not a very good idea above 1000NM. I'm not sure of specifics, but I had several bad experiences with them, on planes not designed for. Usually, the main problem is that you can't charge prices as high as with standard seating. And, on big distances, money comes from punitive prices inflicted to your sheep passengers. I'm not sure better than standard is a good idea, especially for economic. But high-density is made for 300NM flights. Not 6000NM flights.

Online schro

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Re: Low load factor issue, Why is this happening?
« Reply #4 on: August 15, 2016, 12:55:09 PM »
I have observed for quite a while now that it's simply not possible to fill large planes on long haul flights to the extent that I believe it is a bug but I'm not able tobgenerate any clear proof of the system not acting as it is designed. 

Ive had many 5000nm+ routes with say 400ish minimum demand, no competition, 100ri, 100,ci, default price that I'll end up with 60-80% sold on a 77W no matter what I do.

Offline mrh777

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Re: Low load factor issue, Why is this happening?
« Reply #5 on: August 15, 2016, 06:58:50 PM »
Yeah I am thinking that there could be an issue, because I am also flying KJFK-VHHH with the same configuration and roughly the same timings, with near 90% LF. Any other thoughts? It does seem that the game is not reacting as it should.

Online schro

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Re: Low load factor issue, Why is this happening?
« Reply #6 on: August 15, 2016, 08:23:03 PM »
Yeah I am thinking that there could be an issue, because I am also flying KJFK-VHHH with the same configuration and roughly the same timings, with near 90% LF. Any other thoughts? It does seem that the game is not reacting as it should.

So, one thing to keep in mind is to NEVER think it terms of load factor when discussing how many seats you sold. Load factor is a mathematical calculation performed AFTER the number of seats you will sell has been determined and is not considered when making that determination.

You will want to frame your issue as you not selling as many seats as there is demand even though you believe that ideal conditions for all demand to be sold exist.

Offline mrh777

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Re: Low load factor issue, Why is this happening?
« Reply #7 on: August 16, 2016, 05:47:34 PM »
Thank you for clarifying that, that is what I believe.
You will want to frame your issue as you not selling as many seats as there is demand even though you believe that ideal conditions for all demand to be sold exist.

Since I have other comparable routes with similar pricing and the same aircraft type, doing much better for no apparent reason, I think that while as far as I can see ideal conditions exist but something is still prohibiting the route from selling what I would expect.

 

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