Dear sirs,
Why my company image doent grow over 90?
it is stagnant for a year!
Wbrgds
You just need to spend more money is all. Getting over 90 takes quite a big increase in expenditure.
Quote from: Sigma on March 18, 2011, 07:33:20 PM
You just need to spend more money is all. Getting over 90 takes quite a big increase in expenditure.
Does it pay back? i mean do i get advantage, worth of additional expenditure? or just 1-2% additional to load factor?
There's really no point in having CI over ~30 if you have no competition. However, if you do have competition, then the marketshare is based on the CI of the companies as well as the frequency. So then having a higher CI than the other company could pay off, but it may not.
For example, I was competing against an airline with CI 100 in MT3. I had weekly ticket sales of 28-30 mil/week and airport marketshare (Fukuoka) of about 16% with CI 30. I spent 18 mil/week to raise it to 70, only to get 32-34 mil/week in ticket sales and market share of 18%. With CI 30, I was making 2-4 mil profit/week, but with 18 mil marketing, I lost 16 mil/week. So, it's not always good to have a bigger CI.