Feature: Low-Cost Carriers
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unbundled fare model would seem to give them an edge on the full-service network carriers. But, again, the two airline camps are moving toward each other with legacy carriers starting to charge for previously included services. “There are a number of carriers, particularly in the USA, that have seen a benefit in offering an unbundled service, particularly when it comes to baggage,” says HRG’s Berry. “When it comes to longer routes, the opportunity for airlines to make an additional margin by charging for services like baggage is very successful. There seems to be almost a merging of the processes between the two airline groupings, and certainly in the economy class they seem to be offering very similar products,” he adds. “They are taking elements of success from each model and adopting it for their own.” Business travellers looking for the best price
on a route therefore now need to cut through the smokescreen of ancillary offerings and fees. A recent RDC Aviation survey on behalf of Kelkoo concluded that no-frills carriers add up to 44 per cent to the price of a ticket through the addition of such fees and services. It found that low-cost carriers offer an average saving on air fares of 33 per cent over
“Business travellers looking for the best price on a route now need to cut through the smokescreen of ancillary offerings and fees”
Airberlin's mobile boarding pass facility
traditional airlines, with the difference rising to 41 per on international flights and falling to 20 per cent on domestic routes. Ryanair, with one of the greatest proportions of charged-for extras, was still found to offer one of the lowest average fares across all 40 airlines surveyed.
Indeed, in an admittedly unscientific spot check on fares, Ryanair remained consistently lower than British Airways until the travel scenario was pushed to include all the low- cost airline’s charges. For an overnight business trip from London
to Madrid in May, a British Airways flight cost £309.70 including taxes, fees, charges and surcharges. Meanwhile, the headline fare for Ryanair on the same dates was £171.56, a difference of £138.14. But the price began to climb with the addition of the administration fees and charges for optional services such as priority boarding and checked baggage. For an online booking, the ryanair fare increased to £225.56 with the inclusion of priority boarding and administration charges – still below the British Airways ticket price by £84.14. The harshest penalties for people flying
Ryanair are reserved for people booking through the call centre where fees and
➔ 52 I THE BUSINESS TRAVEL MAGAZINE 18 I THE BUSINESS TRAVEL MAGAZINE
Ryanair
germanwings
Norweigan
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