Hello,
I am kinda new here, so sorry if this question has been asked many times.
I was wondering if the demand (passengers/day for any certain route) in the future changes depending on factors like marketing, price, time in service in this route, company images of the airlines, etc... Or is this fixed by the computer and it will not change unless it randomly decides to do it?
Thanks.
Demand increases if you have a lot of seats supplied or otherwise "a good service" (low prices or such). The demand increase in these cases is not shown in the demand charts, and it can be max. about 10-20% of the overall demand.
Quote from: sami on December 22, 2012, 12:01:47 PM
Demand increases if you have a lot of seats supplied or otherwise "a good service" (low prices or such). The demand increase in these cases is not shown in the demand charts, and it can be max. about 10-20% of the overall demand.
Ok thank you! :)
Quote from: sami on December 22, 2012, 12:01:47 PM
Demand increases if you have a lot of seats supplied or otherwise "a good service" (low prices or such). The demand increase in these cases is not shown in the demand charts, and it can be max. about 10-20% of the overall demand.
Do you mean that the increased demand doesn't show? So if a route shows daily demand of 200 pax, it can be up to 240 pax?
your extra pax will be above the 'normal' base demand so dont show : they just turn up on the day, as it were, attracted by the offer. Bear in mind, they will go away just as quickly if you raise prices or change the 'deal'. I noticed this effect when in competition with 2 other airlines, all under-pricing and causing a big over-supply on a route, I still got more passengers than my market-share would suggest, then when one dropped out, rather than an increase in loads, I saw a drop instead, the 'lost' over-supply no longer driving those 'extra' pax in...
Quote from: brique on December 22, 2012, 02:38:53 PM
I noticed this effect when in competition with 2 other airlines, all under-pricing and causing a big over-supply on a route, I still got more passengers than my market-share would suggest, then when one dropped out, rather than an increase in loads, I saw a drop instead, the 'lost' over-supply no longer driving those 'extra' pax in...
So the so-called "Southwest Effect" actually works here?