PUBLISHER: Allied Market Research | PRODUCT CODE: 1414855
PUBLISHER: Allied Market Research | PRODUCT CODE: 1414855
The low-cost carrier market is likely to experience a growth rate of 12.1% from 2023-2032 owing to liberalization of aviation markets and open skies agreements, low maintenance costs associated with aircrafts, and growth of the tourism industry during the forecast period - Allied Market Research
LCCs have adopted modernization of airline systems to optimize the airline operations. For instance, in April 2023, Air India announced significant advancements including customer engagement, operational improvements in its endeavor to modernize its digital systems landscape. The modernization efforts extend to all the group airlines, including the low-cost carriers, ensuring that the benefits are widespread. In addition, there is a focus on implementing common systems across both full-service and low-cost segments, which is expected to capitalize on economies of scale and economies of learning across the entire group of airlines. Passengers can easily browse, compare, and purchase tickets with user-friendly mobile apps, responsive websites, and advanced booking systems. This not only enhances the overall customer experience but also contributes to the growth of the low-cost carrier market.
The low-cost carrier market is poised for significant global growth, driven by low maintenance costs associated with aircraft. Understanding passenger preferences, enhancing the booking experience, and providing personalized services are critical considerations. The focus is on creating a positive and seamless journey for passengers, from the point of booking to disembarkation. The low-cost carrier model has disruptively changed the aviation landscape enabling more affordable air connectivity that has stimulated new passenger segments. Although COVID initially led to enormous losses, the recovery since 2021 indicates the resilience and consumer preference for low-cost airlines as they prioritize savings over luxury.
Factors such as
1) liberalization of aviation markets and open skies agreements, low maintenance costs associated with aircraft, and growth of the tourism industry drive the growth of the low-cost carrier market. However, high competition, and fluctuations in fuel prices hinder the growth of the market. Furthermore, innovative service offering from low-cost airlines, and adoption of latest technologies by LCCs for ticket sales, check-ins, baggage processing offer remarkable growth opportunities for the players operating in the low-cost carrier market.
The low-cost carrier market is segmented on the basis of aircraft type, destination, haul, and region. On the basis of aircraft type, the market is bifurcated into narrow body and wide-body. On the basis of destination, the market is bifurcated into domestic, and international. On the basis of haul, the market is bifurcated into long-haul, and short haul. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key players operating in the global low-cost carrier market include AirAsia, easyJet plc, Eurowings GmbH, flynas, InterGlobe Aviation Limited, Jetstar Airways Pty Ltd., Ryanair Group, Scoot Pte Ltd, Southwest Airlines Co., Volotea.
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