Customers who frequent airlines that provide first-class service,
alcoholic beverages, free meals, in-flight movies and other amenities
receive these benefits because they're willing to pay a higher ticket
price for such conveniences.
Extra Costs
Customers who travel by plane but who don't enjoy amenities such as in-flight movies and free meals during their flight prefer to save money by eliminating extra luxuries. These customers find the savings in eliminating amenities preferable to the cost.
Are the customers who pay more per ticket receiving more value for their airfare? The answer is no; the lower priced airlines could not continue to operate if the customers were not satisfied with their service.
How can airlines provide cheap flights yet continue to operate at a profit? Airlines cut costs in areas that don't affect the quality of customer service or safety of passengers.
The Aircraft
One cost-cutting area in air travel is the aircraft. If the airline company only has one type of aircraft, the training and education of personnel who must service and maintain the aircraft is limited to one type of aircraft.
If an airline has several different types of aircraft, then the airline must make arrangements to provide several different types of training for the personnel who must service, repair, and maintain the aircraft and equipment.
Some airlines can maintain cheap flights and low cost by utilizing this cost-cutting measure: use only one type of aircraft for the airline. Although this measure may place some limitations on the capabilities of the airline, the company can still profit.
Cheap Flights Means and Methods
Another clever cost-cutting strategy is the use of the internet for ticket purchase. Although the customers must later be checked by a live airline representative, the consumer avoids the added expense of a "middle man."
The consumer saves money by making a purchase directly from the airline instead of relying on an indirect route of purchase and paying additional fees to an agent or "middleman."
The airlines can also save money with direct flights. A direct flight eliminates the necessity of extra time for arrival and departure resulting in more fuel and hourly costs of personnel and transferring passenger luggage to another flight, all of which contributes to reducing costs.
The passengers also benefit as they avoid the inconvenience of extended layovers and periods of non-flight. The passengers actually reach their destination faster and a faster turn-around time for flights means more flights.
Empty Seats
An airline, no matter how fast and efficient the service, will not profit if the seats on the flight are empty. Every airline must attract customers first. Cheap flights and affordable prices will attract customers, but the airline must provide good service to keep customers.
Passengers who are willing to forego the comforts and amenities of travel such as free meals and movies will not have to sacrifice value of service in important areas such as security and safety.
Empty seats mean no profit for the companies; accordingly, low-cost airlines in addition to providing cheap flights must maintain certain standards or risk displeasing customers. Dissatisfied customers could eventually mean empty seats on future flights.
Cheap flights must provide value and reasonable pricing because an airline that doesn't have customers cannot possibly succeed. Conversely a low-budget airline that draws customers away from the other higher priced competitors will be a success.
The Airline Business
Any business venture that is a success follows the law of supply and demand. The profitable company or business that recognizes a customer demand and that works to supply the customer's needs will succeed.
Because cheap flights and low-cost airlines supply a need, airlines and businesses focused on cheap flights are prospering. Discerning consumers are profiting from the decrease in ticket prices partly because the prices are reduced but also because the value is the same.
Cheap airline flights with high quality of service and high standards of safety and security help to ensure a stable and profitable airline business.
Extra Costs
Customers who travel by plane but who don't enjoy amenities such as in-flight movies and free meals during their flight prefer to save money by eliminating extra luxuries. These customers find the savings in eliminating amenities preferable to the cost.
Are the customers who pay more per ticket receiving more value for their airfare? The answer is no; the lower priced airlines could not continue to operate if the customers were not satisfied with their service.
How can airlines provide cheap flights yet continue to operate at a profit? Airlines cut costs in areas that don't affect the quality of customer service or safety of passengers.
The Aircraft
One cost-cutting area in air travel is the aircraft. If the airline company only has one type of aircraft, the training and education of personnel who must service and maintain the aircraft is limited to one type of aircraft.
If an airline has several different types of aircraft, then the airline must make arrangements to provide several different types of training for the personnel who must service, repair, and maintain the aircraft and equipment.
Some airlines can maintain cheap flights and low cost by utilizing this cost-cutting measure: use only one type of aircraft for the airline. Although this measure may place some limitations on the capabilities of the airline, the company can still profit.
Cheap Flights Means and Methods
Another clever cost-cutting strategy is the use of the internet for ticket purchase. Although the customers must later be checked by a live airline representative, the consumer avoids the added expense of a "middle man."
The consumer saves money by making a purchase directly from the airline instead of relying on an indirect route of purchase and paying additional fees to an agent or "middleman."
The airlines can also save money with direct flights. A direct flight eliminates the necessity of extra time for arrival and departure resulting in more fuel and hourly costs of personnel and transferring passenger luggage to another flight, all of which contributes to reducing costs.
The passengers also benefit as they avoid the inconvenience of extended layovers and periods of non-flight. The passengers actually reach their destination faster and a faster turn-around time for flights means more flights.
Empty Seats
An airline, no matter how fast and efficient the service, will not profit if the seats on the flight are empty. Every airline must attract customers first. Cheap flights and affordable prices will attract customers, but the airline must provide good service to keep customers.
Passengers who are willing to forego the comforts and amenities of travel such as free meals and movies will not have to sacrifice value of service in important areas such as security and safety.
Empty seats mean no profit for the companies; accordingly, low-cost airlines in addition to providing cheap flights must maintain certain standards or risk displeasing customers. Dissatisfied customers could eventually mean empty seats on future flights.
Cheap flights must provide value and reasonable pricing because an airline that doesn't have customers cannot possibly succeed. Conversely a low-budget airline that draws customers away from the other higher priced competitors will be a success.
The Airline Business
Any business venture that is a success follows the law of supply and demand. The profitable company or business that recognizes a customer demand and that works to supply the customer's needs will succeed.
Because cheap flights and low-cost airlines supply a need, airlines and businesses focused on cheap flights are prospering. Discerning consumers are profiting from the decrease in ticket prices partly because the prices are reduced but also because the value is the same.
Cheap airline flights with high quality of service and high standards of safety and security help to ensure a stable and profitable airline business.
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