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Author Topic: competition - dumping  (Read 680 times)

Offline sergio

  • Members
  • Posts: 131
competition - dumping
« on: October 21, 2011, 11:34:55 PM »
Gd day!

On the route HKG - WSSS a new airline established, located in the same airport (HongKongAir)

I tried to squeeze my new competitor by introducing big palnes, with low prices, and luxury seats. number of seats = 100% of demand.

I just cant understand - why my competitor still alive???Is there some kind of automatic anti-dumping mechanism in AWS????
IN THEORY - My LF should have been 100% on all of these planes!
IN PRACTISE - abt 90% and my competitor still carries pax! i saw this while he had a single line HKG-WSSS.
I returned prices almost to normal, as i see no point in flying y 35$, c 70$, f 90$. its just not worth it.

jlopez

  • Former member
Re: competition - dumping
« Reply #1 on: October 22, 2011, 02:05:09 AM »
Sergio I do think there is something here, I dont think there is a algorithm in this simulation where price differentials create demand.
I also fly in China and have a large competitor and tried lowering my pice but nothing happened. :-\

Offline JumboShrimp

  • Members
  • Posts: 6321
Re: competition - dumping
« Reply #2 on: October 22, 2011, 09:25:23 PM »
Gd day!

On the route HKG - WSSS a new airline established, located in the same airport (HongKongAir)

I tried to squeeze my new competitor by introducing big palnes, with low prices, and luxury seats. number of seats = 100% of demand.

I just cant understand - why my competitor still alive???Is there some kind of automatic anti-dumping mechanism in AWS????
IN THEORY - My LF should have been 100% on all of these planes!
IN PRACTISE - abt 90% and my competitor still carries pax! i saw this while he had a single line HKG-WSSS.
I returned prices almost to normal, as i see no point in flying y 35$, c 70$, f 90$. its just not worth it.

Prices have minium impact on Load Factors at this point in AWS.  What has bigger impact is frequency (more flights with smaller aircraft), CI (Company Image), RI (Route Image) and time of day.  If a competitor flies the route, he will get some percentage of the passengers, not matter what.  But with Load Factor too low, he may not be making any money...

Offline sergio

  • Members
  • Posts: 131
Re: competition - dumping
« Reply #3 on: October 25, 2011, 06:20:23 PM »
Prices have minium impact on Load Factors at this point in AWS.  What has bigger impact is frequency (more flights with smaller aircraft), CI (Company Image), RI (Route Image) and time of day.  If a competitor flies the route, he will get some percentage of the passengers, not matter what.  But with Load Factor too low, he may not be making any money...

i defintely had bigger route image - 100, he was just a beginner.
comp image - he was abt 20-25, i was 60.

"minium impact on Load Factors at this point in AWS" - what do you mean? in the beginners world price doenst matter?
i decreased prices abt 90%, i mean - discount 90%, ticket cost 10% of its original value. so i can icrese it 50%???

"more flights with smaller aircraft" - this means passenger want more or less even offer of aircraft dring day?

Offline Sanabas

  • Members
  • Posts: 2161
Re: competition - dumping
« Reply #4 on: October 25, 2011, 06:34:49 PM »
i defintely had bigger route image - 100, he was just a beginner.
comp image - he was abt 20-25, i was 60.

"minium impact on Load Factors at this point in AWS" - what do you mean? in the beginners world price doenst matter?
i decreased prices abt 90%, i mean - discount 90%, ticket cost 10% of its original value. so i can icrese it 50%???

Not just beginner's world. Discounting your prices in any world will make very little difference. Increasing your prices above the default in any world will cost you a lot of pax. There is basically no reason not to have default prices, all the time. Just reset them to default every couple of RL days.

Quote
"more flights with smaller aircraft" - this means passenger want more or less even offer of aircraft dring day?

Yep.

 

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