Does decreasing pricing really pay off when several airlines are competing

[alfkan]

on the same route?

[Maarten Otto]

No. Sadly not.

[Sami]

Yes. It does.

Given that in example two airlines have the same CI, same equipment, same flight times etc price has a very noticable effect. In real situation all the dozens other factors strir the values that one takes these conclusipns that it would not have effect but that is wrong.

BUT you cannot gain market share with poor image, flight times etc and only with low prices.

[schro]

Yes. It does.

Given that in example two airlines have the same CI, same equipment, same flight times etc price has a very noticable effect. In real situation all the dozens other factors strir the values that one takes these conclusipns that it would not have effect but that is wrong.

BUT you cannot gain market share with poor image, flight times etc and only with low prices.

It sounds like you are answering from the perspective of the payoff being a higher load factor. I agree lower pricing will get more passengers, but I'm not convinced it will be more profitable than flying fewer passengers at a higher fare as my experience has been that I make more money at default pricing (unless it is a brand new airline with a CI under 30).

Its a bit tough to disagree with the guy that designed and built they system - I'm just stating my obervations as a player.

[Sami]

You are right, one must find the balance between number of sold seats and profit.

[alfkan]

I changed back to default pricing on one of my routes where I have to fight with 2 other competitors and both LF and profit increased dramatically!

[Nlgravity]

How about increasing prices higher than default prices if you ri is 100 and you have no competition?

[swiftus27]

Dont increase prices over 'expected' or ppl wont fly.

in my experience dropping prices does not work at getting more market share.

[Sami]

You can do that too. But not much, let's say 20% over suggested has already very noticeable effects.