Low Cost Airlines
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Easy Jet contd...
To encourage booking over the Internet, the airline offered a discount of £5 on every return ticket booked on the web site. easyJet also focused on no-ticket travel. On booking a ticket, passengers were assigned a confirmation number. To check in at the airport, passengers only needed a passport (in case of international travel), or any other photographic identity, and the confirmation number. This made the checking-in process very simple and saved the airline a lot of hassle. As check-in could be done faster, planes could also be turned around more quickly.4 This was also more convenient for passengers as they did not have to produce any documents or wait for hours to check-in. The prices of the tickets were based on the demand and supply of seats on a particular route at a particular time. The prices were dynamically determined by proprietary yield management software that constantly revised and recalculated prices according to demand and supply. If the rate of ticket sales for a particular flight was higher than normal, the ticket prices were revised upwards to avoid the possibility of a sell-out much in advance. This way, the airline ensured that it did not run out of seats on a particular flight too early and that it got the highest price with maximum filling of capacity. Price variation was profitable for the airline as it could charge the best possible prices for a given seat. (If a person booked very early, the ticket price would be low, as a number of seats would be available. As the seats got taken, the reduced supply would increase the price). It was also beneficial to passengers, who had the flexibility to decide in the last minute and still find seats (albeit more expensive ones) on their desired flight. [4] Turning aircraft around as fast as possible to the gate to minimize the time that aircraft spend on the ground was beneficial to the airline, as ground time is non-revenue producing time. |
