Competitive rivalry

Today Ann excitedly called me up and said, "Jo, Tigerairways are selling tickets from melbourne to various destinations for only 9.90 AUS after tax!"

I couldnt believe my ears! It was true!!! My heart starting palpitating and adrenaline starting rushing. Imagine all these places we could venture to for a weekend getaway. Going for a trip was as cheap as buying 1 1/2 cocktails in a bar. Travel over alcohol anytime.

Within 10 minutes, i booked my tickets from melbourne to canberra. I had to be quick because there were only 40,000 tickets on sale.

I scouted the rest of the locations - i either have been to them or they dont appeal to me. The only one that sorta appeal was Mackay as it was near the whitsundays which equated to clear white sand rolling waves. Oh boy oh boy! I spent the next 30 mins sussing out this place and finding the right dates to travel. Finally, i chose my dates and guess what, the 9.90 AUS tickets were sold out! Huh? So quick!! Clicked and refreshed page a few times but all in vain. Oh well, i still have my cheap canberra-melb tickets!

Travelling these days can be so cheap - flying from canberra to melbourne by plane is only slightly more expensive than a daily tram ticket! Competition between the low budget airlines have become increasingly intense with new competitors (Tigerairways + Airasia) breaking into the Australian market. I wonder whether Tigerairways do recover their cost in the first year of operation in Australia. But thats for them to worry. As a consumer, I'm happy to reap the benefits of the competition.

Its a different story when I am one of the competitors. My apartment comes with a parking lot which I rent out for some side-income. My old tenant have shifted out of the building and has therefore, terminated the lease. As such, i had to look for a new tenant two months ago. I placed up an ad on the notice board in the foyer. Unfortunately for me, a week after I put up the ad, this little prick decided to spoil the market and advertised to lease out his car park at a price way below market value. Grr...why did he do that? We should be cooperating and helping each other out! Of course, it didnt reflect well on my car park lease rental price. Suddenly, it looked way overpriced. Potential lessors would call up, compared prices to the other competitor and then politely decline. Getting desperate, a month later, reluctantly I agreed to a below market lease rate with my current tenant.

It was then I realised how virgin blue airlines felt. Frustrating.

A couple of weeks later, I peeped at the notice board and found a few new ads up, advertising to lease carpark spaces at a rate much higher than what i was getting. Its a rate that i should be getting. Grr..it takes one little prick to spoil the market.

WHen the contract ends in 5 months time, I will increase the rental rates. Hopefully, i will have wiser competitors then.