Spirit Airlines Case Study

834 Words 4 Pages
Demand and Supply According to Mathews (2015), “Spirit relies on higher passenger volume to grow its revenues, which also brings in more revenue from ancillary services” (para 5). With Spirit Airlines, Inc. putting consumers in control of how they spend their money and allowing them to create the airline package that is most favorable to them is essential. If a couple is traveling for the away for a weekend getaway, and only needs one piece of baggage checked in, with major airlines, they would be paying for it already in the tickets that were purchased. Spirit Airlines, Inc. allows the consumers tickets to be tailored to their needs. Following the decline in airfare prices offered by Spirit Airlines, Inc., it resulted in an increase …show more content…
This is based upon the statistics that indicate, “87% of American’s customers fly with the airline only once per year, but represent half the airline’s revenue” (Jansen, 2015, para 2). If their prices are similar to what is currently being offered by Spirit Airlines, Inc., this could become damaging for their company. “Low-cost carriers have exerted an influence on airports, both by stimulating the development of basic, regional facilities and by forcing many established airports to reassess the way they operate” (Button, 2012, p. …show more content…
According to Button (2012), “In most markets, for example, where low-cost airlines have a significant presence, there have been major structural changes with fares falling, overall demand rising, and the traditional carriers losing market share” (Button, 2012, p. 203). This is an indication that because of the low-cost airlines such as Spirit Airlines, Inc., more people are flying; however, this could negatively affect larger airline companies. They often elaborate on why a passenger should be required to pay for another passenger’s baggage. Their airline ticket prices are often sold well below the cost of what other competing airlines do. What the purchaser often fails to remember is the old saying; you get what you pay for. A passenger cannot expect to fly first class with extra legroom and in flight snacks while only paying approximately $80 a ticket. As with everything, those who are looking to purchase airline tickets should research the airline company and ensure that he or she has read the fine print. If it is too good to be true, then it probably is. One can simply type in Spirit Airlines, Inc. into a web browsers and be able to read the reviews of previous passengers that have flown with them. It is evident from the reviews and news articles that there is little legroom, anything extra will cost

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