The low-cost carrier (LCC) business model has grown tremendously over the past two decades. Its lower cost structure allows lower fares, thus significantly stimulates traffic and drives air travel’s growth across the world.
However, technologies, customer expectations and the industry dynamics have changed, so have the business strategies of LCCs if they want to continue the growth momentum.
At the World Low Cost Airlines Congress track at Aviation Festival Asia 2018, we are looking at the following trends that are changing the business models of LCCs:
- With projections that millennials will account for 50 percent of all travel by 2020, LCCs need to develop a strategy for winning over millennials. It’s a big job, but having a strong understanding of millennials and a strong brand position will lead the path to success.
- Customers – and again, a majority is millennials – are breathing and living digitally; thus LCCs have to keep up with their digital lives to stay connected, responsive and relevant. How? LCCs need to be where their customers are – that is, mobile and social. They need to sell what their customers want – that is, personalised offers.
- Finally, in this new technology-fuelled environment, LCCs need to be pay greater heed to the disruptions in the industry so they can continue to keep their heads above the clouds.
If you work with a low-cost carrier and have an interesting story to share, we want you to join us at the show to inform and inspire airline leaders across APAC and beyond. Share your ideas here or write directly to me at firstname.lastname@example.org.