keeping CI

[meiru]

hi... just to clarify... if you want to get a higher CI, you have to spend more money for marketing... but, what I'm not shure about -> if you just want to keep the current level... does this cost the same amount or can it be reduced, after reaching a certain level? ... let's say, I'm spending 100k and get a CI of 50 (and let's assume it was stable for 1 year on that level) ... will it drop, when I reduce the marketing spendings to 75k ?

[ukatlantic]

If you reduce the marketing costs your CI will take a hit. Also as you get bigger then naturally your marketing costs are going to get higher to maintain the CI your airline currently has.  If you change you marketing so you pay less then your CI will drop.

[Jona L.]

Yes, it will!

Also the effect is tied to the percentage of your income that you spend for marketing. The place, and the media are 99% eyecandy. So ff your airline grows, or income increases, you need to add marketing. It will be updated to a margin, but if you have big upward jumps, you will have to increase it over time, to keep a certain CI level, or to raise your CI.

cheers,
Jona L.

[lilius]

, or income increases, you need to add marketing.
cheers,
Jona L.

I havent read anywhere that it has anything to do with your income. If your income increases and its not on the cost of more routes I doubt that it matters. Do you have any source?

[Sami]

Marketing cost is scaled according to the airline size (various factors) amd definitely nothing to do with the sales or incomes.

[Jona L.]

Marketing cost is scaled according to the airline size (various factors) amd definitely nothing to do with the sales or incomes.

Hmm, I recalled, that you once said, it was tied to the %age of income to be spent on marketing.... must have mis-remembered then :/