10-13-2017, 07:59 PM
This has always bothered me a bit, having both classes in the game. The original intention was to have economy plus for short-haul or domestic flights and premium economy for long-haul flights. But just due to the demand formula what ends up happening is in order to get max profits you need to include both classes on your aircraft. Personally I've never seen a 5 class cabin layout.
What would you guys think about modifying the demand to favor economy plus for shorter flights and premium economy for longer flights?
Now if you choose to operate premium economy seats on short haul flights, you could still do so IF your ticket prices were similar to the economy plus prices. The bit of the formula that encourages passengers from lower classes to book into higher classes if the ticket price is within their price range is still there.
If I made this change it wouldn't decrease demand, it would simply relocate the premium economy demand into economy plus, or vice versa. Not all of it, just a percentage of it depending on route length. For example a 200mi flight would have minor premium economy demand and a lot of economy plus demand. A 1,500mi route would be somewhere in the middle. And a 4,000mi flight would have lots of premium demand and not so much plus demand.
Also open to any other ideas you guys may have. I just want people to be able to choose how they run their airline without taking too much of a financial penalty because of their choice. Things like bag fees and IFE/IFS will help out those that want to run LCC's in the future as well.
What would you guys think about modifying the demand to favor economy plus for shorter flights and premium economy for longer flights?
Now if you choose to operate premium economy seats on short haul flights, you could still do so IF your ticket prices were similar to the economy plus prices. The bit of the formula that encourages passengers from lower classes to book into higher classes if the ticket price is within their price range is still there.
If I made this change it wouldn't decrease demand, it would simply relocate the premium economy demand into economy plus, or vice versa. Not all of it, just a percentage of it depending on route length. For example a 200mi flight would have minor premium economy demand and a lot of economy plus demand. A 1,500mi route would be somewhere in the middle. And a 4,000mi flight would have lots of premium demand and not so much plus demand.
Also open to any other ideas you guys may have. I just want people to be able to choose how they run their airline without taking too much of a financial penalty because of their choice. Things like bag fees and IFE/IFS will help out those that want to run LCC's in the future as well.
I am the developer of Airline Enterprise


