The QSI (Quality of Service Index) model has generally been validated as an effective tool for forecasting market shares. Nevertheless, its reliance on uniform coefficients across various markets can lead to inaccuracies when predicting outcomes for markets with unique conditions. To address these discrepancies, The system offers users the option to implement traffic and fare adjustments at multiple levels. These modifications are referred to as “Share Gap factors” because they aim to bridge the discrepancy between actual market shares and those projected by the QSI model.

Adjustments based on traffic and fare can be applied across different hierarchical levels, including the entire network, specific airports (either as points of origin or destination), or particular market O&Ds. The sequence of applying these adjustments follows a set hierarchy. Adjustments at the market O&D level are prioritized; in the absence of such adjustments, those at the level of the originating or destination airport come into effect. If both origin and destination airports have adjustments, the average of the two factors is used. In scenarios where airport-level adjustments are not present, the network-level adjustment is implemented. These adjustments are inclusive, affecting all itinerary types.

User Interface

To configure share gap adjustments, navigate to Planning > Scenario Analyses. Within this section, the Airline Adjustment option is accessible via the QSI Settings panel, depicted in Figure 1. To introduce an adjustment record, use the Add button located in the upper right corner for manual entry, or utilize the Upload button to import a CSV file containing the adjustments.

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Table Structure

The Airline Adjustment table contains the following fields:

  • Airline: This field requires the IATA code representing the marketing airline subject to adjustment. In the case of itineraries with multiple segments, the code for the dominant marketing airline is utilized.
  • Scope: Adjustments can be applied at one of three hierarchical levels:
    • Systemwide: Denote using “System”, “Network”, or leave blank for a broad adjustment across the entire network of the specified airline.
    • Airport Level: Input the IATA code corresponding the airport for which the adjustment is intended, either as an origin or a destination.
    • O&D Market Level: Enter a concatenation of the origin and destination airport IATA codes, optionally separated by a hyphen for enhanced readability (e.g. “JFK-LAX”).
  • Traffic_Type: This categorize the adjustment based on the type of traffic as follows:
    • “Local” for non-stops, including code-shared non-stops.
    • “Through” for one-stops, including code-shared one-stops.
    • “Connect” for all connecting itineraries, whether they are online, interline, or code-shared, with single or double connections.
  • Traffic_Factor: This is a multiplier used to adjust QSI score. A factor of 1.0 indicates no adjustment. A factor above 1.0 signifies an increase in QSI (e.g.,1.1 for a 10% increase), while a factor below 1.0 indicates a reduction (e.g., 0.9 for a 10% decrease). It’s important to note that a change in QSI does not translate to a proportional change in traffic volume. For instance, if two carriers in the same market receive a 10% increase in QSI, the actual increase in traffic will be less than 10% due to the fixed market size in terms of passenger numbers. The increase for there carriers is at the expense of others within the same market. If a market has only two carriers and both receive an identical percentage increase in QSI, their traffic volumes will remain unchanged.
  • Fare_Factor: This multiplier is applied to adjust fares. A value of 1.0 implies no fare change. Values greater than 1.0 indicate an increase in fares (1.1 for a 10% increase), while those less than 1.0 represent a decrease (0.9 for a 10% decrease). Fare multipliers have a direct impact on fares; thus, following an adjustment, the total market revenue will vary accordingly.

Traffic Factors serve as multipliers that adjust QSI scores, which in turn, affect the allocation of traffic. Conversely, Fare Factors are directly applied to modify fare values.