Passenger Tolerance Is The Key To The Success Of Budget Carriers On Long-Haul Flights
Written by Naveen Sehgal
The low-cost carrier (LCC) business model is largely dependent on the operation of the short-haul flights by the airlines. The short-haul flights of up to three or four hours duration are considered ideal for LCC since the airlines can save itself the costs associated with the passenger services such as the meals, the entertainment facilities and the comfortable seating. Since the passengers might not need much of services in domestic or cheap international flights of a few hours duration, it reduces the costs associated with it. However, as the markets mature and there are less customers, the LCC operators begin to look increasingly for the long-haul domestic and international flights for further growth.
Long-haul flights mean that passenger will be in the flight for a period of more than four hours. Will the passengers be able to put up with the absence of meals? Or, will they be willing to buy the meals on-board even as they have paid for the cheap international flights? Will the passengers be able to shrug off their boredom in the absence of in-flight entertainment services? Will the customers be able to fly with the least possible leg or seat space? Will it not be inconvenient for them to keep sitting all through the flight hours on an LCC which tries to maximize the number of passengers on-board by compromising with the space availability?
These are some of relevant passenger-centric factors which are likely to play a crucial role in determining the success of LCC operating on long-haul flights. The tolerance levels of the passengers for the absence or restrictions of some vital services and facilities will determine the success or failure of low budget travel. There is no doubt that there is a big potential in the low budget long distance travel since the customers would be willing to pay for cheap international flights which costs less than what the legacy carriers charge under the pretext of providing better services and facilities. But, precisely what menu of services and facilities shall be offered to the passengers so that the LCCs are still able to differentiate from the legacy carriers and maintain the prices of their international flights at low levels is something which will require feedback from customers and brainstorming on the part of airlines management.
Ultimately, it is the passenger tolerance levels and the extent to which these are met by the LCC operators which will determine the extent of success of the strategy of going long-haul.
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