Demand modelling question

[jamestbailey]

The simulation calculates the number of passengers who want to travel on one of your flights with regard to total demand on the route, price, competition, frequency, time of day, CI etc. etc.

Am I right in saying, however, that once that number has been determined, the precise number of seats you have available on the flight is irrelevant. Leave aside the fact that the general size of the aircraft will also impact on demand (e.g. 744 v A320). But compare A320 with A321 or A319.

So if I am selling 150 seats with my A321, I can downsize to an A320 without changing the number of seats I sell (all other things equal)... and therefore increase my LF.

Thanks
Jimbo.

[Sami]

Yes, since the system does not calculate load factors in any way in the process. It calculates how many seats/tickets you will sell with the price settings etc.

[Infinity]

So the supply does not have any influence on the demand? I was always under the impression that demand at served routes grew faster than on unserved ones.

[jamestbailey]

Yes, since the system does not calculate load factors in any way in the process. It calculates how many seats/tickets you will sell with the price settings etc.

Many thanks Sami.

[Sami]

So the supply does not have any influence on the demand?

Yes it does, but for example A320 vs 321 is already in the "irrelevant" ballpark, as the growth factor from that difference is minimal. Depends on route of course.

[Talentz]

Quote from: saftfrucht on Yesterday at 04:43:26 PM
So the supply does not have any influence on the demand?

Yes it does, but for example A320 vs 321 is already in the "irrelevant" ballpark, as the growth factor from that difference is minimal. Depends on route of course.

Were talking about the increase "demand" based on the 150% maximum rule, correct?

Putting more seats on a given route then shown demand, increases the demand on that route.


Talentz

[schro]

Were talking about the increase "demand" based on the 150% maximum rule, correct?

Putting more seats on a given route then shown demand, increases the demand on that route.


Talentz

I suspect what he means, is that if the ticket sales process and says you've sold 140 Y seats, it is irrelevant as to whether that route is serviced by a 320 or 321 (assuming all Y standard config), as you won't sell anymore.

However, if the answer delivered is 175 seats, then the 321 will sell more than the 320 will.