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Match lowest price made routes go into the red

Posted by mischkaffee on 04 January 2014 - 05:48 AM

In R0 my airline TN was doing well. I noticed some routes were under competition, so I simply selected all and hit match lowest price. About half of the routes went way into the negative. Keep in mind almost none of my routes face competition. Now the airline is crashing and burning lol.


Yuxi

Jan 12 2014 04:35 PM
By matching lowest prices did you lower your prices to the point of being unprofitable, even with increased loadfactors? On competition-heavy routes, often the lowest price will not be profitable unless your costs are correspondingly low.

Yuxi 
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