Starting to get worried that the load factor may be slipping on the Allegiant flights. I cheked all three flights the rest of this week and tried to book 9 tickets (the maximum allowed on-line) and I was able to get seats on all the flights. By the way the prices could not be blamed since they were excellent ....
Starting to worry how Allegiant can make money out of ORH with these low prices, not full planes and high fuel prices?
Same Time Next Year
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It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
4 months ago
5 comments:
well the only thing we can really hope for is that people start traveling within the next couple of weeks, since schools are close to getting out, and the summer vacation season begins...I know the Worcester public schools get out the 20th,and a lot of other school systems get out that week also, so maybe people will start traveling...also July 4th is coming up, a lot of people go to Disney the week of the 4th...hopefully all of those things will raise the load factor over the next couple months
Every business has a breakeven point. Leisure travel has a specifice market. Once fuel,ramps fees charge per passenger fees, landing fees, pilot/crew time outweigh the profit margin, It makes no sense to keep the opertion a going concern. Florida is generally a spring/winter destination. Unless families are going to specific attraction around the Orlando area, Cape Cod is closer.
Does Allegiant offer discounts to Disney, Universal etc. If yes, then this should be a key marketing point.
Commercial air travel is a classic economics case study in price elasticity and this is especially so with discretionary vacation air travel.
E.g. Drop the price by 5% and demand will increase by at least 5%%.
Additionally Worcester Airport should drop ALL landing fees as an inducement to get new carriers on board. This should start for Allegiant tomorrow just to show prospective carriers that we mean business.
City costs associated with providing landing services are fixed without regard to if we are talking about 4 or 44 commercial flights per week.
And was it not expected that capacity utilization would drop once the spring/summer flying season begins? I am sure Allegiant has this drop in volume calculated in for the warmer months. Afterall, Allegiant is a business that knows how to budget, unlike our City that purposefully underbudgets snow removal expenses year in and year out and then rolls the snow deficit to the subsequent year and repeats the same mistake again.
Websters: Insanity: Repeatedly Doing the same thing over and over again and expecting to eventually get a different result.
No one travels in May to Orlando...It will pick up with the summer.
www.WorcesterAirport.blogspot.com
Alec:
Then why are we trying to fill four flights? I don't know many people who fly to Orlando during the summer either.
Hope I am wrong.
Bill
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