Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
What Is High-/Low-Yield Traffic?  
User currently offlineTango-Bravo From United States of America, joined Jun 2001, 3813 posts, RR: 26
Posted (14 years 10 months 3 weeks 6 days 10 hours ago) and read 4604 times:

How is the difference between high-yield and low-yield passenger traffic determined?

In checking the range of fares available in the market PHX-MSP-PHX a few days ago, a round trip coach ticket with all taxes and fees included could set one back for as little as $153.50 or as much $1,735.00. It is very obvious that one of these represents low-yield while the other would fit the definition of high-yield.

But what about the dozens, if not hundreds, of other coach fares available in the same market that fall at one of countless increments possible between the lowest and highest found? At what point does low-yield end and high-yield begin? Or are there any number of in-between categories - perhaps "intermediate-yield" or "high-/low-intermediate yield"?

What are your thoughts?

1 replies: All unread, jump to last
User currently offlineJmc1975 From Israel, joined Sep 2000, 3379 posts, RR: 14
Reply 1, posted (14 years 10 months 3 weeks 6 days 9 hours ago) and read 4592 times:

Very good question. High-yield and low-yield passengers can be translated into simpler terms: business and leisure.

Most business travelers are considered to be high-yield passengers because of their lack of flexibility and demand for convenient times. They also tend to choose nonstop flights and they travel rather frequently. Because of their high demands, their tickets will sell at a premium price.

Most leisure traffic is considered low-yield because the passengers are always looking for the best rate. They are willing to fly at odd times, make a connection, maybe drive to a more distant airport and they don't travel quite so frequently. Therefore, their tickets will sell much cheaper.

To answer your question, there really is not an "intermediate-yield". A high-yield market generally has a large percentage of business travelers (i.e. ORD-LGA, SFO-JFK, LAX-DCA). A low-yield market would have a large percentage of leisure travellers (i.e. BWI-MCO, LAX-HNL, LAS-PHX). It is more important for airlines in low-yield markets to fill their to seats to make a profit, whereas in high-yield markets, some airlines make out like bandits by filling only half their seats.

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
What Is Happening To SFO's Traffic? posted Mon Aug 13 2001 04:37:18 by YoungDon
DTW High Speed/low Speed Track, What Is It? posted Tue Aug 1 2006 03:40:08 by Falstaff
What Is The Level Of O&D Traffic From MAD To: posted Sun Feb 27 2005 11:09:31 by Pe@rson
What Is It Like As An Air Traffic Cont. At ORD? posted Tue Oct 12 2004 18:15:49 by 7E72004
High Loads, But Low Yield posted Fri Sep 3 2004 02:20:04 by OB1783P
What Is It Like Working For A Low-fare Carrier? posted Fri Aug 8 2003 06:05:22 by Pilottim747
What Is Your Favourite Low Cost Airline? posted Mon Jun 17 2002 16:36:50 by Skymileman
What Is A "high Aspect Ratio Wing"? posted Sun Aug 5 2001 22:49:41 by SAA-SAL
What Is Your Favorite Low-fare Airline? posted Wed Jul 5 2000 01:31:13 by Lowfareair
What Exactly Is High Bypass? posted Thu Jan 13 2000 22:37:17 by Matt D