Demand By Proxy
You can’t always get what you want…
Finding data can be hard. Say you needed to model demand for Japanese bullet train travel, or the London to Paris run. Ideally, both firms would post these figures, and you could reduce that to insight. While you can locate that information for NYC cab data (see one of my previous posts), you won’t for The Shinkansen or the Chunnel. What to do?
Let’s suppose train operators match the number of seats offered by class to their demand. Why wouldn’t they? If they had too many high-priced seats open, they’d either drop the price or change the seating arrangement. Eventually, they would come to a configuration that works most of the time.
Below, we see the number of seats by price for Japanese (A) and European (B) high-speed rail services. By themselves, neither has enough data to form a viable study. Together, in (C), they reveal collective thinking from different sides of the planet – and it’s much the same. Yes, that’s only two routes. More would be better. But this shows us we can gain an understanding of a market using the files we have instead of the ones we want.
…If you try sometimes, you just might find…you get what you need (Mick Jagger/Keith Richards).
#innovation #demand #markets #marketanalysis #strategy