Market growth

[ekaneti]

Hi do markets grow on an annual basis? Also do lower fares stimulate new travelers and make the market bigger?

[Sigma]

Markets grow VERY slightly.  Not particularly noticeable.

And, no, pricing doesn't stimulate any new demand.  The demand grows by the same small percentage across the board no matter what.

[Sami]

And, no, pricing doesn't stimulate any new demand.

Yes it does. For about 20-25% max, if all other things are right too..

And travel demand grows based on global air travel index that is the same for all routes currently. Growth between years 1995-1997 for example is around 9%.

[Sigma]

Yes it does. For about 20-25% max, if all other things are right too..

And travel demand grows based on global air travel index that is the same for all routes currently. Growth between years 1995-1997 for example is around 9%.

Low pricing on a route stimulates more demand on that route?

That's a new one to me.

It'll increase demand for that flight, sure, but I've never seen it create more demand for that route.

[Sami]

You cannot actually see that in the graphs, it's only in the calculation. If many cheap seats are offered the system increases the daily demand (for that day).. And same the other way around.

[pharmy]

yeah it does seem to work, I put about 500 daily cheaper seats in DXB-MIA and demand increased from 890-950 in about two months