Game mechanics question - premium seating

[fark24]

I have some basic questions about premium seating. Does installing it in an aircraft make the aircraft more popular (i.e, increase the demand) or does it simply allow you to charge a higher price?

For example, an A319 in standard seating vs. A321 in premium seating. Assume the number of seats are equal. Would both get the same number of passengers on the same route? If I then raised the ticket price by 10%, would the demand drop equally for both?

[Sami]

Demand does not really increase because of that (well in some cases it may, but I would suppose the effect is quite small). But if we compare standard and premium seats the latter allows you to put higher price in order to get the same number of pax - if all other variables stay the same.

[fark24]

Demand does not really increase because of that (well in some cases it may, but I would suppose the effect is quite small). But if we compare standard and premium seats the latter allows you to put higher price in order to get the same number of pax - if all other variables stay the same.

Thanks sami! So, in essence, the increase in demand with a premium layout is negligible. The main effect is that you can charge a higher fare - all other variables held the same.

I'd be curious to know how much of a fare increase is supported by better seating. For instance, would passengers pay x% more if you change the layout from standard to premium? Or y% more for a luxury layout?

Some real world numbers could help determine the cost/benefit of going premium or luxury (i.e, is it worth flying fewer seats if you make more revenue per seat). Does anyone have experience testing this?

[Sami]

It really depends on the route and there's no rule of thumb for that.  (= I could give some example figures, but wouldn't be very useful)

[LemonButt]

Thanks sami! So, in essence, the increase in demand with a premium layout is negligible. The main effect is that you can charge a higher fare - all other variables held the same.

I'd be curious to know how much of a fare increase is supported by better seating. For instance, would passengers pay x% more if you change the layout from standard to premium? Or y% more for a luxury layout?

Some real world numbers could help determine the cost/benefit of going premium or luxury (i.e, is it worth flying fewer seats if you make more revenue per seat). Does anyone have experience testing this?

Truthfully, you just need sufficient seating for the route.  You can fly trans-Atlantic with high density seating and get reasonable load factors with no competition.  In my mind, seat quality only matters on routes with heavy competition.  If you have an airline with standard versus premium seating, you aren't going to get a higher fare for the seat, but you'll get more market share.  I think the FC classes are more sensitive.  Having a first class sleeper suit over a high density seat means you'll get quite a few more first class pax than the other guys

[Talentz]

Sami posted just about what I was going to post last night before I went to bed 




Talentz