Yield, ¢ / RPK???

Started by iFlysimX, February 08, 2011, 06:39:10 PM

iFlysimX

Is that bad if its yellow??

It seem like long route doesnt make as much money as short routes......Thats no normal is it???

swiftus27

revenue per kilometer.....

this is dollars in divided by kilometer flown. 

You may make more in revenue, but the other costs (landing, baggage fees, etc) are not in this equation, I think.   So, those short routes may look great using that statistic.  In the end, if you bank off of this number, you will end up losing.

GlobalCEO

Thanks for asking Clement! I was trying to figure this out too. Swiftus, thanks for the info! I've been ignoring that number for the most part (just looking at the profit #s) b/c I was stumped as to it's meaning.

schro

RPK/RPM is a poor measure to compare routes unless the stage length is similar or the same.

The shorter the route, the higher the yield, the longer the route, the lower the yield.

In this game, its mostly useful to compare the effectiveness of price changes - your yield increases if you raise the price 10% and only lose 5% of your passengers, effectively making it a more profitable flight.

Comparing yield between short hop domestic and ultra long haul is essentially worthless.

slither360

ASKs are actually really useful, because it compares the revenue to roughly the amount of time the plane flies.

schro

Quote from: BobTheCactus on February 09, 2011, 01:47:51 AM
ASKs are actually really useful, because it compares the revenue to roughly the amount of time the plane flies.

I will assume you mean $/ASK, as ASK alone is only available seats times kilometers ;-)

You've got to have an accurate CASK to go with that in order for it to be meaningful. (Cost per available seat mile). That will give you your true profitability.

For example, if your short haul routes have a yield of 50 cents per ASK but cost you 60 cents per ASK... thats not good, but if you only compared on yield, you might think that your long haul routes with a 20 cent per ASK yield and a 10 cent per ASK cost weren't performing as well...

Since the game can't currently compute a comprehensive cost per available seat kilometer/mile, its really meaningless to compare routes unless they are of the same length where you have less variables in motion.