Tracking back on the introducing of Low Cost Carrier (LCC), it was not long ago that the air travelers segment seeking for a cheaper alternative to mobilize. In Asia, the first low cost airline, Air Asia introduces no frills air fares to tap into this segment of the market with the tagline, "Now, everyone can fly".
Now, there are Ultra Low Cost Carriers (ULCC) such as Spirit and Ryanair with ala carte pricing strategy. How is it possible?
Simple. If you know what are the changes around you and take advantage of the opportunity it created, bingo! The existence of ULCC was largely based on the advancement of aviation technology, the global deregulation of air space and changes in the social economical conditions. Combining the big data around us, it is much more easier to identify the fragmented needs of consumer. In short, founder and CEO of La Compagnie, Grants Yvelin claims that his airline can cure two kinds of pain experienced by customes: coach travellers suffers from when travel long haul flight and business class travellers suffers from financial pain (Saporito, 2015).
Able to find a fragmented niche market would allow the firm to gain competitive advantage. These ULCC carriers has pushed the airline industry to the extreme in servicing.
References:
Saporito, B. 2015. Little airlines, big ideas: new models in the skies are flourishing. Time magazine, March 2, 2015 pp. 38-41
Saporito, B. 2015. Little airlines, big ideas: new models in the skies are flourishing. Time magazine, March 2, 2015 pp. 38-41
