16 replies to this topic

[Tesla]

 avoiding the race to the bottom.png   284.72KB   3 downloads

 

Here, on this route, my airline is operating with significantly better services than the other 2 airlines. It is also running with a third to half as many seats, but that only contributes to the premium that can be charged. By doing this, because of the premium charged, you bring in 3 times as much revenue per flight, use half as many flights, getting 50% more flights, and therefore this means you can potentially repeat the process on another route operated by scumlines (airlines with legitimately terrible onboard services ). Thus, you effectively can make 3 times as much revenue from the same flight as you would have if you had not operated these slightly advanced services onboard (spamlines can break this a bit, I am aware but I wouldn't expect a new completely inexperienced player to be at this stage). Thus, the 2 airlines shown here will fight themselves down to completely unprofitable levels, one will survive and bring their prices back up but they likely won't be able to remove any of my custom. Hence not getting involved in a price war, the smart way

[KJS607]

So I'm not the only one that knows how to play the game properly? Good to know. This is good advice for newer players. Use it.

[Melodique]

The problem I have is that often although my services and my reputation are way better I can't charge more than my competitors and I have to join the race ......

[Avelo]

The problem I have is that often although my services and my reputation are way better I can't charge more than my competitors and I have to join the race ......

Unless you're the CEO of Singapore Airlines. I bet their (loyal) flyers are ALWAYS willing to pay their more expensive airfares in exchange for artfully professional service, gourmet food, and sumptuous creature comforts.

[zortan]

Unless you're the CEO of Singapore Airlines. I bet their (loyal) flyers are ALWAYS willing to pay their more expensive airfares in exchange for artfully professional service, gourmet food, and sumptuous creature comforts.

yes, but unfortunately no one else

[Tesla]

The problem I have is that often although my services and my reputation are way better I can't charge more than my competitors and I have to join the race ......

It helps if you provide about half as many seats. That is why I was able to charge 3.5x as much as both other airlines. Weirdly enough, everyone has full occupancy, say what you may. Thus I stopped their race to the bottom as well  . I do not see how those 2 are making profit tbh    

[Tesla]

Unless you're the CEO of Singapore Airlines. I bet their (loyal) flyers are ALWAYS willing to pay their more expensive airfares in exchange for artfully professional service, gourmet food, and sumptuous creature comforts.

Well, that's the brand image they have built. Singapore deserves to charge more, because it provides a legitimate service for the extra money. To a lesser extent, the middle eastern airlines have done this too, but they are in the grey area, slightly more expensive, and slightly better, but the crew service is not always that good.

[Ryan_D96]

I doubt your service or reputation is the main factor here. There is a point when the prices get so low you start serving an invisible 'junk demand' layer. Think of it as what Ryanair does, I don't imagine over 500 people a week would want to fly to the arse end of nowhere in Romania from Glasgow. Charge £1.50 - £20 for a flight and suddenly the 'what the hell, it's a quid' effect comes into play.

Try serving all of the demand on that route at full price and I wouldn't be surprised if you still had full aircraft.

A good tactic is to initiate the race to the bottom. If the other players don't know how to play they will keep charging $20 long after you've raised your prices back up to $250

[Tesla]

I doubt your service or reputation is the main factor here. There is a point when the prices get so low you start serving an invisible 'junk demand' layer. Think of it as what Ryanair does, I don't imagine over 500 people a week would want to fly to the arse end of nowhere in Romania from Glasgow. Charge £1.50 - £20 for a flight and suddenly the 'what the hell, it's a quid' effect comes into play.

Try serving all of the demand on that route at full price and I wouldn't be surprised if you still had full aircraft.

A good tactic is to initiate the race to the bottom. If the other players don't know how to play they will keep charging $20 long after you've raised your prices back up to $250

lol. I came in late, started at their prices and kept raising them higher and higher until I found a limit around $350. I think business travellers love my airline due to services  

[Maestro69]

While not directly related to the above, I have had in the past, played in certain worlds where i would either join later or perhaps look at my routes through the game world, and notice that I could charge higher or slightly higher fares than the competition while perhaps not offering the abundance of seats they had originally. I do recall that this happened to me with perhaps a 3 star airline at the time... so could be other factors involved also that allow this to occur.

[Tesla]

By the way, on this route, I just doubled my frequencies using the same aircraft type and configuration, and was able to continue with fare cuts to $450 in business and $285 economy, vs $325 economy and $520 business. So overall profits were increased by about 60%, which I think is a pretty good way of sticking it to the competition  

[Jamesthomeson]

Lol "Scumlines"

[Tesla]

Lol "Scumlines"

Because they play like spamlines in onboard services but don't price like spamlines

[namika]

Because they play like spamlines in onboard services but don't price like spamlines

true everyone hates them.

[Tesla]

true everyone hates them.

Because spamlines can be taken out fairly easily. Scumlines can't. I love routes where spamlines are operated because I effectively become the only airline catering to non connecting passengers so can charge almost anything.

[namika]

Because spamlines can be taken out fairly easily. Scumlines can't. I love routes where spamlines are operated because I effectively become the only airline catering to non connecting passengers so can charge almost anything.

Thats a good way to deal with it

[Book Siberia]

If another airline comes along and underprices you, the smart way to deal with that is to create a hub at at least one of the two airports on that route (and preferably both airports).

 

Just remember to revisit that route and hit the save button to "update" so that connecting passengers can start filling the seats that went empty when that competitor underpriced you.

 

However, you may not refill all your seats immediately - not to worry; simply revisit those routes every day or every other day and hit the save button again to perform an update.  You should start to see more and more seats fill up as time goes by.  You can accelerate this seat fill process by opening more (new) routes into/out of that same airport.