ORS question

Hello,

I just checked the ORS for connecting flight ratings and came across this case.

Simple question: Why is the 3rd option not the best? Better rating, half the price...

Thanks

Jan

ors.jpg

longer time...

It's a better flight at first glance, but AWA probably has a better route network to feed the KWI-SEZ flight.  Not all passengers from Frankfurt are continuing on to SEZ.  In fact, I'm willing to wager that most of the passengers flying to KWI aren't continuing on to SEZ at all.

Hello,

I just checked the ORS for connecting flight ratings and came across this case.

Simple question: Why is the 3rd option not the best? Better rating, half the price...

Thanks

Jan

What's the actual rating (the number that shows when you move the mouse there)? Judging from the list, I'd say all 5 flights have exactly the same final flight rating, which is likely the maximum rating such a connection can have (75 IIRC). Meaning even if you set your prices to 0 your rating would still not improve. Or in other words, you should actually be raising prices to maximize profit rather than lowering.

longer time...

So AS passengers are willing to pay twice the price for 40 minutes better flying time?

It's a better flight at first glance, but AWA probably has a better route network to feed the KWI-SEZ flight.  Not all passengers from Frankfurt are continuing on to SEZ.  In fact, I'm willing to wager that most of the passengers flying to KWI aren't continuing on to SEZ at all.

But the network size shouldn't have effect on the rating of FRA-SEZ. 

What's the actual rating (the number that shows when you move the mouse there)? Judging from the list, I'd say all 5 flights have exactly the same final flight rating, which is likely the maximum rating such a connection can have (75 IIRC). Meaning even if you set your prices to 0 your rating would still not improve. Or in other words, you should actually be raising prices to maximize profit rather than lowering.

Correct. Both AWA and KYA have a final rating of 72.

AWA has 57 & 61 for the two flights. KYA has 85 & 88.

So if pricing doesn't have any effect, the system is flawed. 

But the network size shouldn't have effect on the rating of FRA-SEZ. 

Network size doesn't affect rating, but the fully booked planes that your competitor has is due to carrying passengers over FRA-KWI-Other and Other-KWI-SEZ.  There are very, very few passengers flying FRA-SEZ directly.  Chances are they also have better seats, and therefore fewer seats onboard - to compensate for the additional time and fare differences.

@kenmuir: You're correct in what you say, but it's not what he asked for. He didn't ask why the first two flight options are fully booked.

The system is definitely not accurate, a problem for so long :-( It's almost impossible to stimulate market based on a fare (e.g. that's why it's impossible to run a true low-cost airline), but in real world the market is highly (as a person familiar with the details I can say it's sometimes spectacular...) price sensitive!

So AS passengers are willing to pay twice the price for 40 minutes better flying time?

But the network size shouldn't have effect on the rating of FRA-SEZ. 

Correct. Both AWA and KYA have a final rating of 72.

AWA has 57 & 61 for the two flights. KYA has 85 & 88.

So if pricing doesn't have any effect, the system is flawed. 

I didn't say pricing didn't have any effect. I said there is a maximum rating that a connection can have (direct flights will still score higher), so once your rating reaches that maximum, you will no longer get a benefit from lowering prices any further.

That said, yes, the system is quite flawed, and unrealistic. Plans have been announced to improve it considerably.

It's almost impossible to stimulate market based on a fare (e.g. that's why it's impossible to run a true low-cost airline)

It is not possible and will not be possible to stimulate market, even under new booking classes and demand planned, base don low fares. The total demand will stay the same. There will be no “additional generated” demand by low cost carriers, to what I understand from information so far provided by AS, only current demand will be divided among multiple passenger types, so no true demand stimulation.

How will ORS work with the booking classes and different passenger types? So far, everybody is going for the highest rating. In the future, a low-cost flight with normal seats will have a lower rating (and serving the let's say low-cost passenger type) but still can be fully booked. In that case, it will be hard to understand the rating numbers. Will there be a way to reflect and re-calculate the rating to make it possible to understand how the rating (or another indicator) is calculated?

It is not possible and will not be possible to stimulate market, even under new booking classes and demand planned, base don low fares. The total demand will stay the same. There will be no "additional generated" demand by low cost carriers, to what I understand from information so far provided by AS, only current demand will be divided among multiple passenger types, so no true demand stimulation.

You're right, maybe I have not expressed myself exactly.

It is almost impossible to start competition based on the fare, as the example shows. In real life, 99% of the passenger would book the third, cheapest option offered by KYA. But here in AS, the effect of the fare is underrated.