Hi all
I've finally make a good schedule with planes departing and arriving in waves from a central hub.
Now my domestic flights are almost always full.
Anyway I'm still loosing money on most of them. I have two options: raise prices or lower the services. I've already get rid of the pitch to have more seats on my CRJs.
In many of my routes there are no direct flights other than mine. If I raise the prices on those flights, assumed that they remain on top of ORS, do I'll have less passengers?
I.E. there is some passengers that given higher prices renounce to travel? Or given a number of passengers on a route, they get the more convenient but fly anyway?
Thanks.
Hi,
if there is demand on a route, you will get a share of these passengers. A higher ORS rating means you will get a bigger share, and vice versa.
If you are the only operator on a route, you should get all available passengers. In theory, because some passengers may also reach their destination via another route (perhaps with a transfer).
Anyway, you have given the solution yourself... the bottom line of every airline is making a profit. So you either have to raise prices, or lower the service ;-)
And you don't need to be at the top of the ORS. Obviously a good rating helps, but passengers will not refuse to fly if your rating is a bit lower. As a matter of fact, passengers will fly if your ORS rating is higher than zero. Just be carefull... if your overal rating is as low as 50, there will probably be a lot of transfer flights with a higher rating.
Success with your airline !
Jan