Hybridising To Capture The Corporate Dollar
Like moths to the flame, most LCCs have eschewed their original religious purity of cost-is-everything, instead recognising that improving yields is a much easier way of making money. However, the real danger in making that strategic leap is that the aggressive focus on keeping costs low is lost, along with the competitive margins against their legacy competitors – who were also busily reducing their costs.
The most obvious steps in this evolution were forced on the long-haul low-cost airlines. On long-haul it was harder to maintain a cost differential against the legacy airlines, which were able to achieve greater utilisation, a key cost saving item, using large widebodies. So adding a little to the yield profile became essential and a few larger or near-lie flat seats were added at the front, followed by airport lounges and so it went.
Similarly, as short-haul LCCs became ubiquitous and the corporate market grew more price sensitive post-GFC, that product became an obvious corporate target. Not much needed to be done to adapt for point-to-point services; the economy in-flight product was by now not so different from the full service competitors; OTP and frequency were often similar or even better. Just a change of focus and point of sale, with some frills – easy…
This panel looks at each side of the equation, corporate buyers, LCCs, full service airlines and intermediaries
Moderator: Association of Corporate Travel Executives (ACTE),President, and Troovo CEO, Kurt Knackstedt
- Aer Lingus, Chief Revenue Officer, Mike Rutter
- easyJet, Group Commercial Director, Catherine Lynn
- CWT, Director, Air Solutions EMEA, Maxime Marembaud
- Travelport, Senior VP & Managing Director, Derek Sharp