question on route market share/route profit

Started by Sranan, January 19, 2012, 08:15:04 PM

Sranan

i am fairly new to this sim.

i have noticed that the more flights to an airport outweigh the aircraft size (8x cjr v 1x a340). it is my understanding its more about frequency than size.

however, i have seen on a few of my routes a 'new' airline has come and taken a good size of market share. a few routes are the same frequency, different aircraft. all of my flights are spaced at least one hour or more apart.

my question is how can 2x frequency outweigh 4x or 5x frequency to airport? thus affecting profit.

my route - 5x a320
competition - 2x b734
route pax per day - 630

LemonButt

Pricing for one.  If your competition is flying way cheaper than you, they will get more pax (but less revenue usually).  It takes time for Route Image (RI) to reach 100 as well.  Also, if you aren't flying EVERY day, you get penalized.  Having 2x/day only 3 days/week is not enough.  Also, larger planes will get a larger number of pax.  Yes--8x CRJ is better than 1x A340, but even so the A340 will get 50+ pax (probably no more than 80) where the CRJ will only get 40-50.

Sranan

i have read that price discounts arenot the best thing to do. because, as you said, hurts profits. i tried before lower prices but didnot see any positive effect.

all of my routes are daily.

i also have a higher ci than the competitor.

i am trying to figure out how they opened base for approx 1 year at my base, and have taken such a large part of route market share so fast. alot of the same routes they have are copied from my routes i have noticed or +/- 1hr difference.


Sanabas

Quote from: Sranan on January 19, 2012, 08:15:04 PM
my question is how can 2x frequency outweigh 4x or 5x frequency to airport? thus affecting profit.

my route - 5x a320
competition - 2x b734
route pax per day - 630

What is the market share on that route? I'd expect it to be somewhere around 70/30 in your favour, less if a couple of your flights are in the middle of the night.

If you're behind on market share, the likely reason is that you have a plane/planes in C-check. If 3 of your flights are flown by the same plane, and it is in C-check, then you're only supplying 2 daily flights each, so no surprise if it's 50/50, or even slightly in his favour.

Sranan

Quote from: Sanabas on January 19, 2012, 09:13:52 PM
What is the market share on that route? I'd expect it to be somewhere around 70/30 in your favour, less if a couple of your flights are in the middle of the night.

If you're behind on market share, the likely reason is that you have a plane/planes in C-check. If 3 of your flights are flown by the same plane, and it is in C-check, then you're only supplying 2 daily flights each, so no surprise if it's 50/50, or even slightly in his favour.

they have approx 55, and i have approx 45. the aircraft arenot in maintenance.

Sranan

would being in an alliance help the other airline?

Sanabas

Quote from: Sranan on January 19, 2012, 09:25:22 PM
they have approx 55, and i have approx 45. the aircraft arenot in maintenance.

Have your planes just exited maintenance? Are you running 7 day schedules, and those are the routes that don't get flown thanks to B-checks? Have you just opened those routes, or just changed them to new route numbers?

I can't think of any other reason for you to only have 45% with 5 flights v 2 on an oversupplied route, since you say the times are fine. Can you post a screenie?

Sranan

i need to get a few of the routes screenshots.

but i post the airport. i am top airline, but in less than one year, #2 airline has a large amount of market share at airport.

i am wondering if it has anything to do with props v rj on a couple of routes. but then it is a320 v f100 or b734 on others.

does the aircraft age have any influence?

Sanabas

Depends how many planes you have at the airport. If your 35% is from 75 planes, then it's not too hard for someone to open a secondary base there and reach 30% with 50+ planes of their own. If you have 250 planes, then it would be very strange to see somebody limited to 100 planes having that much market share.

Sranan

i have just over 100 aircraft based

donot know how many they have.

Sranan

since i lowered fares i have noticed market share going back in my favour.

i think the fleet size maybe an issue at the moment because i am waiting for the aircraft on order to fill the routes planned PLUS i opened a new base recently.

i am still new to the sim and trying to figure the right mix and turn a profit.

alexgv1

I think making a profit is more important than market share tbh.
CEO of South Where Airlines (SWA|WH)