Low Cost Carrier Case Study

1825 Words 8 Pages
Analyzing the Impact of Low-Cost Carriers on the Asian Tourism Industry

1) INTRODUCTION
The low-cost carrier is a new kind of type in air transport. It is designed for people who have little budgets. Different from the traditional full-service carrier, low-cost aircraft provides discounts on the tickets. As Hunter L. stated: ’The passenger air travel industry is characterized by the emergence of low-cost/ no-frills sector alongside and partly in competition with the incumbent full-service carriers.’ (2006:351) The passenger witnesses the decision between low-cost carrier (LCC) and full-service carrier (FSC). Before LCC appeared, the traditional FSC occupied the market considerably. According to a table draws on ITF (2002): and Alderighi et
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It could result in the markets unstable and hard to grow up. There has been worried about the LCCs entrance of air market as the result of tradition airline companies have been improved their service or efficiency to be capable of offer more budgeting airfares. Also, LCCs comforted a situation that they could not rely on short-haul routes rather than started to fly for long-haul for competitive to the FSC companies. It could be predicted that LCCs would open more flights for long-haul routes sooner or later. Thus, the price gap between LCCs and FSCs is lessening in the Pacific Asia nowadays. Then, LCCs have faced the fluctuation of fuel price as well. A research was taken by World Tourism Organization (UNWTO,2007) explained that the obstacle to expansion would include the growing fuel price; brutal struggle among LCC rivals and from traditional …show more content…
Also, emerging low-cost carriers increase job opportunities. Because of deregulation of aviation, LCCs fly to the secondary cities to stimulate the tourist incomes in minor cities in Asia. For example, as Chung & Whang (2009) pointed out that Korean LCCs had been growing 161.7% in four years from 2009. In contrast to the traditional airlines, LCCs had risen relatively rapidly.
Secondly, this essay examined the relationship between seasonal fluctuation in tourism and LCCs. The findings in this situation also give visions to a new phenomenon of the air transportation market in Asia.
It is possible for LCCs that could encourage more tourists in the low seasons than full-service carriers because of the relatively low tickets fare.
Moreover, With the convenience of online service growing up, it could also encourage quickly customers to make decisions to purchasing tickets on the websites.
Despite the positive impacts on LCCs, they still confront highly competitive market among LCCs peers and FSCs. Through the economic and social discussion, it seems like that LCCs should figure out how to survive in the low-fare circumstance in the near

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