If there's one thing about air transportation, it is there's a reputation for them charging high ticket rates compared to other forms of transportation. This can be justified for multiple reasons: the costs of fuel and maintenance for airplanes and the sheer convenience of arriving at your destination at the quickest possible time, just to name 2 of the biggest ones. But also people are looking for cheaper ways to fly. And the airplane companies have obliged by offering low cost flights. But are low cost flights good for business? We'll try to answer that in this article.
Contrary to what most people may think (or what the airline industry would try to tell you), there are a lot of times when low cost flights are actually good for business. To better explain this in a nutshell, we can simply take a look at the consumer's mentality. When they can avail of something at a lesser price, they often go for it because they find it advantageous for their budget. That said, offering low cost flights, either at the form of charter tickets or periodical discounts, mean good business for them because more people can afford their services, therefore they can avail them. The amount of sales more than compensate for the minuscule loss of profit.
Low cost flights are particularly beneficial during times of economic stress. In a period of down economies, it is tempting to raise prices because of the rising costs of maintaining an airline business. But given that the maintaining costs remain constant, lowering prices actually makes sense. This is because you can attract people to avail of your services. And as more people get tickets, the higher your profits can become. As they say, it's sometimes better to have a low profit per purchase but get more buyers than to have a high profit per purchase but fewer buyers.
Putting up low cost flights is also good for business during off-peak seasons. During these periods, it's a struggle to fill up flights, with some resorting to either postponement of flights or consolidation with other flights with the same destination. One of the ways they usually do to fill up the seats of an otherwise empty plane is to put up last-minute ticket discounts. Depending on the number of empty seats, the size of the discount may vary. Again, remember the rule that it's better to have seats filled on a discount than to travel with empty seats. The more seats they can sell, the more sales they can generate, and the better it is for business.
Selling tickets at a low price may sound like a counter-intuitive practice to some. But when you analyze it, low cost flights actually make a lot of sense for airline businesses during specific situations. And if you are still having doubts if they are working, just imagine this. Airlines will never offer low-priced seats and seasonal discounts if they don't think they are profitable. So it's easy to conclude that low cost flights are not just good for our budgets, but they are also good for business. For more details please visit http://www.onepointdream.com
Partha Ghosh - has vast experience in writing on tour package,cheapest air ticket booking,low cost flight tickets,mobile recharge api,free recharge api,mobile recharge business,multi sim recharge,all sim recharge,multi recharge sim,all in one recharge,lowest fare air ticket,Travel franchise,
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