Lesson 1: Traveling in the 21st Century

PAGE 10

Article
No Frills Travel

The Traveler Magazine
Brad Johnson

No Frills Travel

Over the past decade the aviation industry completely transformed the way it does business. The 90s saw hyper competition which reduced airlines' profit margins and began to reduce frills being offered on standard carrier economy class service. Second class once offered services including free drinks and meals on local flights. These extras are a thing of the past. Today passengers should have a good meal before boarding.

Discount airlines such as Ryanair and Easy Jet in Europe, Kingfisher airlines in Asia and in the USA, South West Airlines, are all offering discount trips around the USA, Asia and Europe. The winner is the consumer. Ryanair CEO, Tom O'Leary, spoke at the AGM about passenger value and the incredible savings for those who are willing to fly with no frills. "We do not refund tickets or give out any hotel coupons to our customers if our flights are delayed. We also weigh passenger's baggage and charge for excess kilograms, but in return we offer the cheapest form of transportation by selling trips for as low as 10 euros plus tax within Europe."

"Larger airlines, also known as legacy carriers, have been slow to adjust to the competition which, as a result, took several airlines into bankruptcy last year" said James Spaulding, who is regarded as the world expert in the aviation sector. "The business model is changing and airlines are not able to rely on business class revenues alone. It seems as though they are not able to get a handle on the situation."

Brad Johnson
The Traveler Magazine
(London)