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Pricing separation not making a difference?

Posted by NYCFlyer on 02 January 2014 - 02:37 PM

On one of my airlines I fly LAX-LHR. The first class demand for the flight is 25 pax. With my two flights a day, I have 16 seats on the market. My first class ticket price is $1599 while all the rest are $2000 or above, yet my first class cabins are still only filling up at an 81 percent load factor. Shouldn't a price that is $400 lower than the competitors make the cabin fill up?

It depends on the demand it is a ratio that divides the pax on a low demand route it is better to keep higher prices and not a full cabin. Than charge really low prices and not have a profitable route. Another reason maybe that the route has like way more seats than the demand.

High IFS Reputation differences can also lead to this effect when a route is overcrowded.

If you have a bad IFS while the others have good IFS, the price difference which required to get the passengers will be even higher.

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High IFS Reputation differences can also lead to this effect when a route is overcrowded.

If you have a bad IFS while the others have good IFS, the price difference which required to get the passengers will be even higher.

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I'm aware of that and that was the first thing I checked. My first class IFE is rated at an 75 whereas the only other higher-rated airline is at 86 and is 700 dollars higher than me. At that point it should still allow me to get more than what is now around a 50 percent load factor.





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