So, I have a 738 configured with 138,10,3 seats flying a 98NM-route with over 200 Y passenger demand, but no C or F demand. I have no competition, and my route image is 18. I'm offering all the seats (Y, C and F) for the same price, which is under the suggested Y price. My LF for Y is 50-80%, mostly between 60 and 70. But, I get no C or F class passengers.
Now, because I'm a new company, it's normal that I don't get that high LF. But, if I am offering the C and F class seats for the same price, you would expect the passengers to first fill up those, regardless of the company or route image. At least I would, if I could choose to fly in C or F for the same price. Therefore I think there is something wrong with the passenger algorithms, that should be looked closely.