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Author Topic: Ideal LF  (Read 548 times)

Chaxterium

  • Former member
Ideal LF
« on: October 13, 2017, 02:38:46 AM »
Hello,

I'm curious about pricing strategies. I understand if I have a really high load factor on a route (>95% let's say) then that means that I could probably increase my pricing on that route. I'm curious then what is a good LF to aim for? Should I keep increasing my prices until the LF goes down to around 85-90? Or can I go even lower while still increasing profits?

Cheers!
Chax.

Offline Sami

  • Administrator
  • Members
  • Posts: 17137
    • AirwaySim - Are you the next Richard Branson?
Re: Ideal LF
« Reply #1 on: October 13, 2017, 06:28:13 AM »
There is no ideal Load Factor. There is the ideal profit level = maximum profit you can get from that flight (highest possible price, with highest possible number of seats sold). Load factor can be anything then ...

But generally speaking the sweet spot of best earnings is somewhere arouind 75-90% LF.

Chaxterium

  • Former member
Re: Ideal LF
« Reply #2 on: October 13, 2017, 11:33:57 AM »
Thanks Sami!

Offline wilian.souza2

  • Members
  • Posts: 882
Re: Ideal LF
« Reply #3 on: October 13, 2017, 05:26:36 PM »
I'd like to know about some things that are pertinent to this subject: There are some columns in the Manage Routes page that show the routes' Yield/ASK (Available Seat Kilometres) and Revenue/RPK (Revenue Passenger Kilometer). How are these variables calculated, especially the ASK and RPK? I believe orange/red values for Yield/ASK means that the fares are too low for that route, is that correct?

 

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