One trend we at Travel Daily Media are actively keeping an eye on is the recent shift back to full-service airlines offering premium services through premium economy, business, and first class.
Admittedly, this ongoing return to the services of full-service carriers has been driven in many ways by the dissatisfaction many passengers experience with low-cost carriers.
Given recent feedback, you certainly can’t blame them: with issues ranging from flight delays of two hours and more, increasing prices of fares and onboard addenda, and baggage mishandling leading to either loss or considerable damage to property, today’s travellers are finding themselves willing to shell out a little more to ensure a safe and comfortable flying experience with considerably less stress.
But is that reason enough to assume that we could see the end of the low-cost carrier business model among airlines?
The reason is a little more complicated than you’d expect.
No, but…
The simple answer is that it is not yet the end of the low-cost carrier as an operational model for airlines throughout the world.
To cite a 2023 study by Huang Yung-Chuan: “With the popularization of international business in the market, the number of LCCs has increased since the 1990s and they have now become one of the mainstream modes of civil aviation transportation worldwide.”
Huang went on to explain that low-cost carriers made up only eight percent of the total commercial aviation market in 2001, but that share grew to 22 percent as of end-2022.
The bare-bones, no frills, prices as low as you could go model helped spur on the popularity of low-cost carriers, enabling those who would not have normally been able to afford air travel and overseas trips to go on the journeys of their dreams.
Indeed, AirAsia and Cebu Pacific summed the matter up in their respective slogans: now, everyone could fly.
However, this same business model also meant that passengers wouldn’t be able to enjoy certain amenities that are automatically offered by full-service carriers: up to 20kg of checked-in baggage, hot meals on flights two hours or longer, refillable drinks, legroom, even inflight entertainment and comforts like blankets and pillows for long-haul flights.
In the initial years of the low-cost boom, people didn’t seem to mind; but when low-cost carriers began offering meals and checked-in baggage for a little extra, that’s when things began to change.
Points to ponder
People need to understand that current economic factors and issues are making it more challenging for low-cost carriers to keep up their current operational model.
Remember, current conflicts affecting oil-rich countries have sent the cost of fuel skyward, affecting the cost of land, sea, and definitely air transportation.
Additional fees and taxes charged by airport authorities are also driving up the cost of the average budget airline ticket.
You also need to consider the fact that full-service airlines have begun to offer basic economy fares (but still with the standard amenities) to lure budget travellers away from their usual LCCs, giving them the opportunity to experience full service in the skies.
Finally, passengers simply want more from their LCCs of choice in terms of the demeanour of their inflight staff, basic comforts like cabin cleanliness and working restrooms, and less issues in terms of punctuality and baggage handling.
Areas for improvement
In recent years, we have seen the shuttering of a number of low-cost carriers throughout the world.
This development has made the industry more competitive as remaining players in the field ramp up their offerings to sustain customer interest and loyalty.
In which case, perhaps current LCCs need to consider a few points for improvement:
- Upskilling of staff One key complaint that many passengers have regarding LCCs is the somewhat brusque demeanour of inflight staff. This can be addressed by regular training and refresher courses in human and personal relations. Training also goes for baggage handling and ground staff to improve overall efficiency and competence;
- Shift to more sustainable and cost-effective fuel With many airlines shifting to sustainable aviation fuel (SAF) to reduce their carbon footprint, LCCs should also make the change or, at the very least, find safe and more reasonably priced alternatives to high-priced and high-octane fuels;
- Encourage customers to sign up for loyalty programmes for exclusivity Loyalty programmes are a boon for LCC passengers as accumulated points will enable them to enjoy perks normally unavailable at the price of a regular ticket. These could run from priority boarding and disembarkation to better choices in terms of cabin comfort; and
- Keep tabs on the basics Regular maintenance, cleanliness, and functionality are all that most passengers ask of any airline, full-service or otherwise. You may not offer better legroom for passengers, but just be sure that the recline function works, the restroom toilets flush properly, and the overhead luggage compartment doesn’t suddenly pop open in flight to show passengers that they made a good choice.
