Do Cheap Air Tickets Provide The Right Growth Strategy-musiland

Aviation Airlines have different business models. The low-cost carriers (LCCs) provide only single class travel and charge ostensibly the lowest air fare as .pared to the other set of airlines which operate on the full-service model, providing different classes of seating in a single plane. There are characteristic features associated with each of these models and the pricing of the air tickets is based on the essence of these models. The LCCs seek to provide the cheap air tickets whereas the full service carriers are also concerned about the .fort, privacy and exclusivity of the passengers and price their tickets as per the services provided to these passengers. Airlines operating on both these models have their own set of methods for moving on the growth trajectory. Many argue that providing cheap air tickets is the best way to ensure the growth of airlines. This has also been amply demonstrated by the success of low cost carriers worldwide. Banking on no-frills services and the cheap air tickets, these have been able to foray into newer markets, tapping the latent demand for flights and exploiting it to its full. Once the entry into a new market is made, the phase of capturing most of the market share begins which sees the airlines offering even more attractive offers, deals and discounts on their ticket prices. The full service carriers are said to hold a long-term benefit with better yield management which is aided by their differential seating arrangements. So, while the LCC do a better work of opening the new markets, the full service carriers take the center-stage in the long run. Does that mean that the lowest air fare is the best strategy to grow for the airlines? While it is true that the LCC model has been successful since it provides the lowest air fare which helps in market penetration, it is also true that the prices of air tickets slowly begin to go the full-service provider way in the long term. The full service carriers provide a wide range of options and flexibility to the passengers while the LCCs are essentially restrictive in their offerings. It has been a noticeable trend that as the disposable in.e of people increases, the people begin to travel on higher seats configuration provided by the full service carriers. So, cheap air tickets could be good entry strategy but this solely is not sufficient to hold on the customers. About the Author: 相关的主题文章: