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Miscellaneous => Archives => (archive) Game talk - Dawn of the Millennium #4 => Topic started by: DenisG on May 30, 2012, 08:33:57 AM

Title: Lowering Prices leads to Lower LFs?
Post by: DenisG on May 30, 2012, 08:33:57 AM
Hi folks.

Perhaps I have missed something: As I lower prices on competed routes, my LFs drop significantly. First I thought perhaps coincidentally, my competitor just did the same by chance around that game week. But then I retried it twice and it led each time to a significantly lower LF. Was there some change that I missed? Or similar experiences?

Thanks.

Cheers,
Denis
Title: Re: Lowering Prices leads to Lower LFs?
Post by: Airbus101 on June 04, 2012, 12:50:09 AM
Note: Edit... never mind
I deleted post info...
I was doing a study but my data was flawed
Title: Re: Lowering Prices leads to Lower LFs?
Post by: 737Capt on June 08, 2012, 01:09:39 AM
Hi folks.

Perhaps I have missed something: As I lower prices on competed routes, my LFs drop significantly. First I thought perhaps coincidentally, my competitor just did the same by chance around that game week. But then I retried it twice and it led each time to a significantly lower LF. Was there some change that I missed? Or similar experiences?

Thanks.

Cheers,
Denis
Dropped my ticket prices 15% percent on a high demand route with lots of competition and did not seem to make any difference in load factor.
Title: Re: Lowering Prices leads to Lower LFs?
Post by: brique on June 08, 2012, 03:51:14 AM
Dropped my ticket prices 15% percent on a high demand route with lots of competition and did not seem to make any difference in load factor.

I have a similar issue on a particular route I run, if I drop prices by 15% or even up to 25%, the LF remains pretty much the same. I'm assuming the other variables are at work (CI, RI frequency and whatnot), and any improvements I make are being matched or exceeded by my competitor, who is a much bigger and also a much older airline.

That said, I'm still making $$'s on the route using the last of my old fleet until they get replaced, so its not all bad news in such cases.. guess sometimes you just have to take 2nd place and just mop what pax are left to you.