King Khalid International AirportSimulation & Analytics
Simulation & Analytics / M4

Elasticity Analysis

Price sensitivity of demand and revenue, computed with the Pricing Simulation engine on shared M1 demand, activated M2 allocations and published M2/M3 tariffs.

DEMO analysis · Elasticity, stay distribution, price bands and guardrail thresholds are illustrative assumptions (not RAC-confirmed). Nothing on this page submits, approves or publishes tariffs.
Current Price Elasticity
-0.35
Inelastic · DEMO assumptionDEMO
Current Published Tariff
SAR 25
Drive-up hourly tariffDEMO
Forecast Demand
21,340
Vehicles · Next 7 days · served 21,161DEMO
Expected Revenue
SAR 2,199,175
At current tariffDEMO
Revenue-Maximizing Tariff
SAR 28.50
Guardrail-compliant · theoretical SAR 30DEMO
Expected Revenue Opportunity
+SAR 37,080
+1.7%DEMO

Analysis ConfigurationDEMO

Baseline = current published tariff, activated allocation, no demand adjustment.

Price vs DemandDEMO

Forecast vs served vehicles (capped by activated allocation).

Price vs RevenueDEMO

Best compliant and theoretical maximum marked.

Revenue & Demand SensitivityDEMO

% change vs current by price change; red = fails a guardrail.

Capacity Utilization ImpactDEMO

Peak (time-overlapping) and average occupancy of physical capacity.

Price Sensitivity TableDEMO

Next 7 days · elasticity -0.35 (DEMO) · same engine as Pricing Simulation.

ScenarioProposed tariffForecast demandServedExpected revenueRevenue changePeak occupancyCapacity riskGuardrails
−15.0%SAR 21.2522,46022,116SAR 2,101,973−4.4%96%CriticalDecreases only when peak occupancy < 95%; Decrease must not push demand beyond activated allocation
−10.0%SAR 22.5022,08721,808SAR 2,138,267−2.8%96%CriticalDecreases only when peak occupancy < 95%; Decrease must not push demand beyond activated allocation
−5.0%SAR 23.7521,71321,487SAR 2,169,924−1.3%96%CriticalDecreases only when peak occupancy < 95%; Decrease must not push demand beyond activated allocation
Current tariffSAR 2521,34021,161SAR 2,199,1750.0%96%Critical—
+5.0%SAR 26.2520,96720,826SAR 2,214,298+0.7%96%CriticalPass
+10.0%SAR 27.5020,59320,487SAR 2,227,380+1.3%96%CriticalPass
+15.0%SAR 28.7520,22020,144SAR 2,238,392+1.8%96%CriticalPass

Optimal Price AnalysisDEMO

Scanned across ±30% of the current tariff.

Highest theoretical revenue
SAR 30 (+20.0%)
SAR 2,246,850 · peak 96%
Not recommended — fails: Change within ±15% cap
Best guardrail-compliant tariff
SAR 28.50 (+14.0%)
SAR 2,236,255 · served 20,212 · peak 96%

Opening a scenario only pre-fills Pricing Simulation. Submission, approval and publication remain separate M5/PARCS actions.

Elasticity InsightsDEMO

DEMO rule-based analysis — not live AI-generated recommendations.

  • Demand sensitivity
    Elasticity -0.35: a 10% price rise changes demand by −3.5% (inelastic).
  • Do price increases raise revenue?
    Yes — +10% gives SAR 28,205 more.
  • Do price reductions create capacity risk?
    Yes — −10% adds 39 vehicles over the activated allocation at peak (risk Critical).
  • Best expected outcome
    SAR 28.50 (+14.0%) → SAR 2,236,255.
  • Why this tariff
    Highest revenue among tariffs in ±30% that pass all M5 guardrails; the theoretical maximum SAR 30 is excluded because it fails change within ±15% cap. Served volume is capped by the activated M2 allocation.