Revenge travel has arrived and numerous individuals are embarking on trips to their favorite dream destinations. Within the Philippines, there has been a significant surge in domestic travel as many Filipinos make their way to popular locations such as Boracay. As for booking airfare, the majority of travelers now opt for low-cost airlines, with many Filipinos suggesting to “search for cheap tickets on Cebu Pacific or AirAsia”. These two airlines maintain low fares throughout the year. But how exactly do low-cost airlines like Cebu Pacific and AirAsia Philippines manage to keep their prices so low?
In the past few years, low-cost airlines have become more popular because they are cheaper than traditional airlines. These airlines have disrupted the aviation industry by providing low fares and streamlined services. Here, I will explain how low-cost airlines keep their fares low and what makes them different from traditional carriers.
Simplified business model
One of the primary reasons why low-cost airlines can offer lower fares is their simplified business model. Traditional airlines offer a range of services, such as in-flight meals, drinks, and checked luggage, that are included in the ticket price. In contrast, low-cost airlines offer no-frills services and charge extra for things like checked luggage, priority boarding, and in-flight meals. This means that low-cost airlines can operate with fewer staff and have lower operating costs, which they can pass on to their customers in the form of lower ticket prices.
Operating at secondary airports
Another way that low-cost airlines keep their fares low is by operating out of secondary airports. These airports are often located outside of major cities and are less expensive than primary airports. By operating out of these airports, low-cost airlines can reduce landing fees and other airport-related costs, which helps them keep their fares low.
High aircraft utilization rates
Low-cost airlines also operate with high aircraft utilization rates, meaning that they aim to keep their planes in the air for as much time as possible. Traditional airlines often schedule longer layovers between flights, allowing passengers to connect to other flights or take a break. However, low-cost airlines schedule shorter layovers and aim to turn their planes around quickly, reducing the amount of time the aircraft spends on the ground and maximizing their efficiency.
Dynamic pricing
Low-cost airlines use dynamic pricing to maximize their revenue. This means that they adjust their ticket prices based on demand, time of day, and other factors. For example, ticket prices may be higher during peak travel times or when there is high demand for a particular route. Dynamic pricing allows low-cost airlines to adjust their prices to stay competitive while still making a profit. If you want to know more on how to bag the best deal during an airline seat sale, you may visit this.
No-frills services
Low-cost airlines also offer no-frills services, which means that they strip down their services to the essentials. For example, passengers may be charged extra for things like checked luggage, priority boarding, and in-flight meals. By offering no-frills services, low-cost airlines can reduce their operating costs and keep their fares low.
Fuel-efficient aircraft
Low-cost carriers also use fuel-efficient aircraft to reduce their operating costs. These aircraft are designed to use less fuel than traditional aircraft, which helps low-cost airlines keep their fares low. Additionally, fuel-efficient aircraft produce fewer emissions, making them more environmentally friendly than traditional aircraft. Cebu Pacific and AirAsia rely exclusively on Airbus aircraft. Cebu Pacific utilizes A330s, A321s, and A320s, and also employs ATR turboprop planes for their interisland operations. Meanwhile, AirAsia Philippines employs an all-A320 fleet. Additionally, both airlines feature high-density seating configurations.
Dense seating configuration
A dense-seating configuration on a plane allows low-cost carriers to keep fares low by maximizing the number of passengers that can be carried on each flight. By reducing the amount of space between each seat, airlines can fit more passengers on each plane, increasing the overall capacity of the aircraft. This means that airlines can spread their operating costs over more passengers, making each ticket less expensive.
Basically, low-cost airlines keep their fares low by operating with a simplified business model, operating out of secondary airports, using high aircraft utilization rates, offering no-frills services, using dynamic pricing, and using fuel-efficient aircraft. While these airlines may not offer the same level of service as traditional carriers, they have certainly disrupted the aviation industry and made air travel more accessible to a wider range of travelers.
First love never dies. I fell in love with airplanes and aviation when I was a kid. My dream was to become a pilot, but destiny led me to another path: to be an aviation digital media content creator and a small business owner. My passion for aviation inspires me to bring you quality content through my website and social accounts. Aviation is indeed in my blood and blog!
