Analyse under- and over-utilisation of capacity through idle resources, overstretched workers, quality, costs, demand, flexibility and business performance.
Extract A Arditi Tours Arditi Tours is a bus company offering passengers travel between Pristina, in Kosovo, and Tirana, the capital of Albania. The 250 km journey takes about five hours, including a rest break and the formalities at the border crossing between Kosovo and Albania. The route is popular with students travelling to and from university, families who live across the border from one another and tourists. There are four buses every day, in both directions. The buses leave Pristina and Tirana at 05:00, 08:00, 11:00 and 15:00. A ticket for a one-way journey is €15. The price of the ticket includes two pieces of luggage weighing a maximum of 50 kg. Arditi Tours has a reputation for quality, reliability and clean buses. There are several competitors offering the same routes, at various times each day. Demand for travel varies considerably throughout the year, with services operating at full capacity some weeks but less than quarter capacity at others. The break-even point for Arditi Tours in April 2022 was 17 passengers per journey. The price of diesel that the buses use was €1.58 a litre in April 2022 but this price has been rising, leading to higher costs for Arditi Tours. April is a month of average demand for seats.
Extract B Data showing the average number of passengers travelling per day on Arditi Tours services from Pristina to Tirana in April 2022
Analyse two possible reasons why Arditi Tours continues to offer four bus journeys
a day in each direction.