A low-cost carrier or budget airline (LCCs) is an airline that offers lower fares in exchange for a more basic service than traditional scheduled airlines. These ‘no frills’ airlines usually charge for extras such as priority boarding, seat allocation, check-in baggage and food on top of the basic ticket price. While this has been the favoured pricing strategy for low-cost carriers for some time, we’re starting to see more traditional carriers follow suit as they test new ways to drive extra revenue and compete with their newer rivals.
There are a few aspects to consider such as,
- The balance between cost savings and traveller comfort and productivity.
- Potential impact on traveller satisfaction and willingness to travel.
- The importance of clear communication about included services and potential additional costs.
- It may require more flexible booking processes to accommodate LCC pricing models.