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Author Topic: [-] Why is the system so averse of 100% LF?  (Read 238 times)

Offline JumboShrimp

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[-] Why is the system so averse of 100% LF?
« on: May 03, 2015, 05:58:44 PM »
Supply: less than 1/2 of demand, even on the lowest day, Tuesday
Time of flight: perfect
Seating: standard
Type of aircraft: very recent jet, 90+ % condition.
Price: default

In real world, the flight like this would be sold out a month in advance, and overbooked.  Why can't the system award consistent 100% LF, but it is consistent 98%?

I understand that it is not the best strategy, that I should raise prices, but curious why the system is so averse of the 100 on a consistent basis.  On consistent bases, these are common
98%? very common
97, 99% also common
100% rare to non-existent

Whereas it should be the other way around.  It far more common that a vastly undersupplied route is sold out consistently than it being consistently short 1 or 2 passengers.
« Last Edit: May 03, 2015, 05:59:48 PM by sami »

Offline Sami

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Re: Why is the system so averse of 100% LF?
« Reply #1 on: May 03, 2015, 05:59:41 PM »
Consistent 100% LF over several days or weeks on a flight series is rare in real life (last minute no-shows etc.), so there's a factor/calculation reducing it a bit (randomly).

(=> not a bug, but a feature  ;D )

Offline JumboShrimp

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Re: [-] Why is the system so averse of 100% LF?
« Reply #2 on: May 03, 2015, 06:06:44 PM »
The airlines overbook, or still collect the fares from non-refundable no-shows.

What I find interesting is that suppose a route has 750 pax demand, and supply is a 50%, or about 325.  LF is consistently in 98% range.  Suppose I add another flight, now supply is 75%, or about 485.  The LF will still be about 98%, even though there is an extra flight, extra 160 pax supply.  That's the part I find unusual.


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