Seat occupancy

In passenger transport, seat occupancy is understood as the occupancy rate of means of transport per unit of time.

General

In the case of means of transport (such as buses , trains , airplanes , passenger ships or trams ), a limited number of seats and standing places are available for passengers for technical and safety reasons (in airplanes there are only seats). The permitted number of seats and standing places is the seating capacity of the means of transport. How many of these seats and standing places are actually occupied by passengers is determined by the seat occupancy.

calculation

The seat occupancy is determined like the seat load factor for airlines . The seat load factor (abbreviation: SLF; English Seat load factor ) is the most important key figure in commercial aviation . It indicates the proportion of seats occupied by passengers compared to the total number of seats. To calculate the distance covered are passenger kilometers ( ) the available seat kilometers ( faced): ${\displaystyle RPK}$ ${\displaystyle ASK}$

${\displaystyle SLF={\dfrac {RPK}{ASK}}\cdot 100\,\%}$ or

${\displaystyle {\text{Sitzladefaktor}}={\frac {\text{verkaufte Sitzplatzkilometer}}{\text{angebotene Sitzplatzkilometer}}}\cdot 100\,\%}$.

The seat load factor indicates on the one hand whether the air fleet used is being used efficiently, whether there is still market potential or whether the capacity limits are being reached. This number is often used to compare different transport companies . It allows only limited conclusions to be drawn about the profitability of a transport company because it does not contain any information on the breakeven point .

For many airlines, this economic key figure is given three times in the annual report , namely for the entire route network, for intercontinental flights and for the continental route network. The intercontinental flights usually have a significantly higher load than z. B. intra-European flights and therefore these values ​​are difficult to compare with each other. Whether the seat load factor is good or bad can only be determined by comparing operations and is also dependent on the economy - and often depending on the season .

An airline decides, for example, to an on average to 70% busy route to use (with a seating capacity of 100 seats) by a larger aircraft with a maximum of 200 seats, the seat load factor decreases from 70% to 35%. This usage is most likely below the break-even point ( English break-even load factor ), so losses. It should be noted that the breakeven point has even increased (the larger aircraft causes higher fixed costs such as depreciation and personnel costs due to more flight personnel ). Larger seating capacities only make sense if a disproportionately high increase in demand is to be expected.

economic aspects

The degree of utilization required to reach the breakeven point corresponds to the value of the intersection of the cost curve with the revenue curve ${\displaystyle x_{kf}}$

The degree of utilization or the degree of employment are important business indicators for companies, which indicate the utilization of operational capacities . The degree of utilization is particularly important in companies that have a high proportion of fixed costs in the total costs ( capital-intensive companies such as automobile manufacturing , aviation or shipbuilding ). The result is a relatively high break-even point ( English break-even point ), in which the total cost only at a relatively high utilization rate covered are. If the seat occupancy reaches the break-even point, this occupancy rate leads to an annual surplus for the first time . When the breakeven point is exceeded, the fixed costs are distributed over a larger number of units (passengers), which means that unit costs decrease and profits increase ( fixed cost degression ). In order to achieve the company 's goal of maximizing profit , however, the aim should be to achieve a higher degree of utilization, at a maximum of 100%.

The seat occupancy can be influenced by various measures. If the breakeven point is lowered, for example by reducing fixed costs, the utilization risks of a transport company are reduced and vice versa. With a given break-even point, seat occupancy can be improved by reducing prices (higher demand ), price differentiation (day or night prices), vertical product differentiation (quality competition), extending operating times and shortening idle times , introducing seasonal operations or by overbooking (also to avoid no -shows ), which aims to fully utilize the capacities. In public transport , the modal split in particular influences seat occupancy.

The average costs per passenger mile or freight mile (regardless of route length and flight volume) in scheduled services form the basis of assessment for flight prices in order to achieve a targeted return on capital taking into account expected occupancy . Seat occupancy tends to be lower in scheduled services than in charter services . If the seat occupancy rate is permanently too low, there is excess capacity , which leads to empty costs in the case of "empty trips" . In the event of overcapacities, the yield management has to consider reducing the cycle time , using smaller means of transport or even closing the route . The reverse is to be followed in the case of overemployment .

Individual evidence

1. ↑ Seat load factor is a literal translation from English and should be translated better as seat load rate .
2. ↑ Federal Statistical Office (ed.), Economy and Statistics , Issues 4–6, 2009, p. 329
3. ↑ Gerd Aberle, Transportwirtschaft: Individual economic and macroeconomic foundations , 2003, p. 26
4. ^ Heinrich Mensen, Handbuch der Luftfahrt , 2013, p. 1390 f.
5. ↑ Hartmut Berghoff, Moderne Unternehmensgeschichte , 2016, p. 88
6. ↑ Springer Fachmedien Wiesbaden (ed.), Kompakt-Lexikon Management , 2013, p. 426
7. ↑ Dieter Lohse / Werner Schnabel, Fundamentals of Road Traffic Technology and Traffic Planning , Volume 1, 2011, p. 558
8. ↑ Gerd Aberle, Transportwirtschaft: Individual economic and macroeconomic foundations , 2003, p. 196