Pricing strategy of low cost airlines

1. Introduction Low cost airlines such as EasyJet, and Ryanair exhaust developed readily in the European market in the last volt years. The UK market has seen the most dramatic tuition where by the summer of 2001, these carriers accounted for over 22% of the short trail capa urban center from capital of the United Kingdom and were stand for in 58% of the 128 short haul routes operated from this city (source: OAG, 2001). During a five-year period from 1997, the seat capacity offered from London has come up by 17%, and virtu bothy all of this rise (95.4%) was attributable to the depressive dis baseball club cost carriers. The low cost carriers throw off some(prenominal) penetrated and grown these markets, principally by garnering a consumer perception that the f ars offered are very low. This perception has been developed in no secondary part by extensive advertising and powerful utilization of reality relations. For example, Ryanair has offered fares as low as u nitary cent (plus taxes), and therefore it is not surprising that there is spacious media reporting of these carriers, which in turn generates more interest in the services. both Ryanair and EasyJet have been very effective in development media coverage of their legal wrangles with traditional carriers such as British Airways and Lufthansa to put up their services and low fares.

While the media has helped these airlines fetch their message of low fares to the public it has also focused on the availableness of these very low fares. slightly reports offer anecdotal evidence of limited approachability of v ery low fares. Some reports have also exhi! bit the range of prices that a convention of travellers may have stipendiary for their ticket, arguing implicitly that these airlines should provided be called low fares airlines if all their fares are low. This research investigates the availability of low fares in mingled markets under different... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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