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Author Topic: What's going on at Bankok?  (Read 1106 times)

blair21088

  • Former member
What's going on at Bankok?
« on: May 08, 2009, 01:19:51 AM »
I have a 744D flying Singapore-Bangkok-Hong Kong with $10 tickets and I'm only getting 13% load factors. What the heck is going on here? I've been lowering the prices from the default over the past 3 weeks with almost no change in load factors to the point that I am offering the flight at $10 a segment. My route image started at 35 and is now at 40. How could I possibly be ending up with an empty plane with such a ridiculous price?

Talentz

  • Former member
Re: What's going on at Bankok?
« Reply #1 on: May 08, 2009, 01:36:15 AM »
Quote
My route image started at 35 and is now at 40

That's it right there. Such a low RI vs other higher route images means you "cant" get a full plane. RI needs to be 80+ before you start to see higher LF % for that route. RI limits the amount of pax you can get on a given route. Once it reaches 100, that means you can have all the pax, in theory.

Remember also there's other factors. Most notably CI. You can have $1 ticket prices, but if your competition has 100 CI.. you still wont get high LF. In fact, not only wont they fly with you, they'll fly with your competitor at a much, much higher price.

In the way things are calculated, price is not that high of a factor.

Wait till your RI reaches 100. Then, you can figure out why (if) you still have low load factors.



Hope this helps


Talentz

Offline Sami

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Re: What's going on at Bankok?
« Reply #2 on: May 08, 2009, 03:09:56 PM »
Well to start off... what is the actual pax demand on the route?

If demand is 100 and you offer 500 seats with $10, you can't still get it full. Perhaps around 200 ppl will fly it at best but not more.

nirakan

  • Former member
Re: What's going on at Bankok?
« Reply #3 on: May 08, 2009, 03:19:58 PM »
Hi every body I'm CEO of Sudsaichai Airways at Bangkok. This route I'm is a first opener. In this time avarage load factor this route varible 70-90 %. I think load factor  to concern with route image and company image. because a Flying World have many flight than my company but I'm is a first to occupy in this route marketshares.

I'm sorry if I'm writing this post was wrong in English gramma. Because I'm a Thai people and I'm isn't expert in English.

Best regard
Nirakan
CEO of Sudsaichai Airways

toyotaboy95

  • Former member
Re: What's going on at Bankok?
« Reply #4 on: May 09, 2009, 01:24:37 AM »
Well to start off... what is the actual pax demand on the route?

If demand is 100 and you offer 500 seats with $10, you can't still get it full. Perhaps around 200 ppl will fly it at best but not more.

i recall all of those routes are at 'high' or 'very high' demand

NicholasB

  • Former member
Re: What's going on at Bankok?
« Reply #5 on: May 09, 2009, 03:03:45 PM »
Sure there is a high demand on this route, but did you check the capacity offered by you and your competing airlines?

I mean ok eg: the demand is about 1000 pax a day, but there are probably 5-6 airlines on the routes each offering about 200-400 seats a day, so just for a start the could be capacity for about 3000+ seats a day. Couple that with a low route image, i would say find a new market.

blair21088

  • Former member
Re: What's going on at Bankok?
« Reply #6 on: May 09, 2009, 04:26:52 PM »
And my point was that it's very strange that I couldn't even get a load factor bigger than 15% with a company image of 75, a route image of 45 and $10 tickets. This leads me to believe that the market price for tickets on that route has got to be like $ or $50 maximum. Just because a market i saturated does not mean I shouldn't try and break into it with a combo of high image and low price.

Talentz

  • Former member
Re: What's going on at Bankok?
« Reply #7 on: May 09, 2009, 05:40:56 PM »
Quote
with a company image of 75


Yuck. Compared to my CI of 100, that's very low. Even someone with CI of 90 is low compared to 100. You should always shoot for the highest CI you can get. Or at the very least 90. Its quite easy to get to 90. However, 90-100 takes 2-3 mths and awhole lot of money.

~60-80 is an avg CI rating. You cant expect too much. But against new airlines, you can hold your own.

~ 80-90 is your above avg CI. Airlines with lower CI can feel the impact once someone enters the market. They have a small control over market share. But, with enough competition, market share can be lost.

~90+ is the best CI money can buy. Airlines with CI 100 can dictate who controls routes. Not just the ones they've been flying, but new markets as well. CI 100 means you can jump in any route, heavy competition or not, and steal pax. Thats without having to discount more then 10% off default prices. 

Also, its very effective against airlines who use market oversaturated as there key tactic.


Sami is correct in that you dont need CI 100 to run an airline. However, if you want to controls routes as you see fit, CI 100 helps achieve that. Among other things.


Talentz

 

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