Rex to fly between Australian capital cities

HS-TQE

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Its Sunday / Weekends. I would assume most of the traffic are largely low yielding between the $39 fare brackets to face brackets just under $100.
 

frequently

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View attachment 248051
Looks busy on the MEL-SYD run tomorrow
wonder what % of seats sold at $39 ? Suggest it might be a lot less on 4pm, 5pm & 8pm flights. Sun pm is always busy, but maybe more $39 seats on 10am & 12noon flights. Heard some aerial ping pong fans(afl) flew to MEL for $78 return, to watch a game. They must have overnighted, as don't think afl games finish in time to get flight back.

Wish airlines etc. would stop saying 12am & 12pm, as no such thing & can be confusing for punters, ie. midday or midnight & if midnight, which day ? They should say 11.59am or pm (1159, 2359). Heard of some person who while in Europe, turned up for what he thought was a midnight departure when it was a midday departure.
 

milehighclub

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Wish airlines etc. would stop saying 12am & 12pm, as no such thing & can be confusing for punters, ie. midday or midnight & if midnight, which day ? They should say 11.59am or pm (1159, 2359)
Agreed. Out of ZL, VA, JQ and QF, only QF displays 24 hour time on their booking page. ZL does use 24 hour time on the flight status page though.
 

PineappleSkip

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Looks busy on the MEL-SYD run tomorrow
For everyone. Sydney are about to defeat Collingwood at the MCG which game would have generated a lot of traffic.

Wondering if Rex sold off all their seats at $39. QF offering e-deals seats at $200-443, VA starting at $399 with several flights sold out in Y, and while JQ have a couple of cheap flights they have a lot of expensive ones also

Cheers skip
 

frequently

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For everyone. Sydney are about to defeat Collingwood at the MCG which game would have generated a lot of traffic.

Wondering if Rex sold off all their seats at $39. QF offering e-deals seats at $200-443, VA starting at $399 with several flights sold out in Y, and while JQ have a couple of cheap flights they have a lot of expensive ones also

Cheers skip
$39 sale fare doesn't mean all seats, it means the lowest fare bucket is $39. Sometimes in Tiger days, their cheapest fare meant 3 or 4 seats only per flight at some crazy fare.

Rex's yield management would have picked up that these flights tomorrow MEL/SYD were selling fast, so would have been adjusted upwards automatically by the computer or with human intervention.

Recently spoke to yield management at international airline as looking for group price.

For those not aware, the more seats you want, the higher the price(airlines are not selling widgets), assuming you want more than in the lowest fare bucket. Was talking to them about roughly a 330 seater aircraft & of course some fare buckets have no seats from day 1, in peak season. Anyway, asked the question ... how much for 20, 25, 30, 35, 40, 45 seats & the price per seat only jumped when asked for 45, so could get 40 seats at lowest fare bucket. Was looking approximately 11 month ahead, when virtually zero bookings had been made(flights loaded that day) & post pandemic, when they sound like they wanted to generate sales & so maybe more in lowest fare bucket than usual.

Interestly, just had a look at rex site & there are still at least 9 seats on the 6am & 7am flights MEL/SYD Mon am @ $39, so Sydneysiders at the MCG this afternoon, could have stayed in MEL tomorrow night as well & still possibly got to work Mon am, even if a little bit late & the airfare saving may have paid for a hotel, if 2 or more people.
 
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frequently

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Appreciate yield management and dynamic pricing. I was wondering out loud how good Rex's yield management systems were. I hope for their sake they are better than their website!

Cheers skip
their website is ok. The biggest problem they are facing with their website, is being hacked by guess who ?
 

dajop

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Well yesterday, which admittedly was a Friday, they seemed to have some OK flights on MEL-SYD, was full in business on all flights, and the flights overall had an average load factor 82-85% (depending on whether they used the 170 or 176 seaters). Didn't check the other direction.
 

Saab34

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I think they sold every seat for $39. My old folks purchased one of those seats earlier in the week and only 2 flights were sold out, the next day 4 sold out. The fare prices never went above $39. They got a seat for $39. A few hours later the flight they purchased went sold out.

It looks like yield is down the toilet and it’s just a matter of filling seats and drumming up some business. I think it’s possibly a wise move at the moment.
 

MEL_Traveller

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Wish airlines etc. would stop saying 12am & 12pm, as no such thing & can be confusing for punters, ie. midday or midnight & if midnight, which day ? They should say 11.59am or pm (1159, 2359). Heard of some person who while in Europe, turned up for what he thought was a midnight departure when it was a midday departure.

That is becoming increasingly rare these days... many airlines now list those times as 2359, or 0001. For midday departures I think the 1200 is fine.

The problem still exists though with someone booking a flight on say 1 January which happens to be departing at 0215. Not uncommon for people to think they need to turn up at the airport on the evening of the 1st, rather than the 31st :(
 

Mattg

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I think they sold every seat for $39. My old folks purchased one of those seats earlier in the week and only 2 flights were sold out, the next day 4 sold out. The fare prices never went above $39. They got a seat for $39. A few hours later the flight they purchased went sold out.

It looks like yield is down the toilet and it’s just a matter of filling seats and drumming up some business. I think it’s possibly a wise move at the moment.

This breaks pretty much every yield management principle in the book, if true. There's actually a term for it - "high-yield spill". Why sell all seats for $39 (which is likely below cost anyway), then sell out of seats days before the flight is due to depart meaning you don't have any seats available for the business traveller who would have spent $200+ on the day of departure?

It makes no sense, unless Rex either (a) has incompetent yield management, or (b) it's a deliberate strategy to just fill seats at any cost so that more people try the product and the media stops talking about all the empty flights.
 

Melburnian1

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Most of those carriers either had a form of government assistance to keep the flights ongoing, or is wholly government owned and subsidised. Qantas had very minimal financial assistance from the government (the minimal funding from the government used towards operating largely intermittent charters).

I'm sure that if QF (or VA) had ongoing assistance from the Feds to operate short haul and long haul international flights continuously, they would've continued to do so. Just like UA, DL, PR, SQ and others have continued to do so with their taxpayer funded government handouts.

PR doesn't appear to have received any government assistance that I can easily find. It's privately owned.
 

MEL_Traveller

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PR doesn't appear to have received any government assistance that I can easily find. It's privately owned.

Not talking huge sums though!
 

Saab34

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Why sell all seats for $39 (which is likely below cost anyway), then sell out of seats days before the flight is due to depart meaning you don't have any seats available for the business traveller who would have spent $200+ on the day of departure?
I think the issue here is that $200 day of departure person does not exist. I guess 168 seats or whatever it is at $39, otherwise back to April and March Ops, which was 10-20 per flight.

I guess that’s an extra 60-70k pax on the route this month.

It really appears that want those pax to return in the future. That’s what it’s all about I guess.

Tiger did something similar on launch however not as heavy as it appears Rex is doing. Remember those $9.95 fares network wide.
 

Saab34

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The problem still exists though with someone booking a flight on say 1 January which happens to be departing at 0215. Not uncommon for people to think they need to turn up at the airport on the evening of the 1st, rather than the 31st :(
My old folks did that with one of those SQ midnight departures from Melbourne. Only cost them about $1500 to get it fixed as the flight left the day before
 

Mattg

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I think the issue here is that $200 day of departure person does not exist. I guess 168 seats or whatever it is at $39, otherwise back to April and March Ops, which was 10-20 per flight.

I guess that’s an extra 60-70k pax on the route this month.

It really appears that want those pax to return in the future. That’s what it’s all about I guess.

Tiger did something similar on launch however not as heavy as it appears Rex is doing. Remember those $9.95 fares network wide.

Unless Rex's cost base is ridiculously low (which I guess is possible), I doubt they would be breaking even if even every seat was occupied, if they are all sold at a fare of $39.

But at least they're closer to breaking even than they would be if only 20 seats were sold at $39.
 

PineappleSkip

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Rex ... (a) has incompetent yield management,
That's this punter's punt. Not so much incompetent but systems/processes not sophisticated enough. Hopefully a learning event for them.

I did wonder if QF group is awake to their systems and tricking them. When I looked yesterday afternoon JQ were offering $30 seats on its 6.00 am flight (but way higher price for later slights).

Cheers skip
 

jakeseven7

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That's this punter's punt. Not so much incompetent but systems/processes not sophisticated enough. Hopefully a learning event for them.

I did wonder if QF group is awake to their systems and tricking them. When I looked yesterday afternoon JQ were offering $30 seats on its 6.00 am flight (but way higher price for later slights).

Cheers skip

So......?
 

Mattg

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That's this punter's punt. Not so much incompetent but systems/processes not sophisticated enough. Hopefully a learning event for them.

I did wonder if QF group is awake to their systems and tricking them. When I looked yesterday afternoon JQ were offering $30 seats on its 6.00 am flight (but way higher price for later slights).

Cheers skip

I'm a bit confused - are you suggesting that Rex's yield management is directly linking its available fares to Jetstar's prices?

I would've thought the $30 fares on the 6am flight would be because nobody wants to fly at 6am.
 
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