Competing in an LCC world

Abstract

The way in which low cost carriers price their product and revenue manage their flights has posed a commercial challenge to their traditional competitors, and also questions the validity of the conventional airline revenue management theory and practice. This paper examines how they differ in their approach, how airlines are responding and what constitutes an effective response in the changed airline business world. This includes consideration of all the marketing levers (product, price, promotion and distribution) in an integrated way, as well as developments needed in the core revenue management systems themselves.