Budget Airlines and Their Growth Factors in Europe

Factors Stimulating the Growth of Budget Airlines

At present, budget airlines have become very popular. An increasing number of people travel by airplane as it is convenient and it is not expensive anymore. One of the major reasons why the budget airlines are so popular is, of course, the low price (Vink 2009). Traveling by airplanes is now more affordable. The second factor that affects the popularity of budget airlines is the rise in potential customers’ income. People in developed countries earn enough to travel by plane. Moreover, people in developing countries earn more and start travelling more. Finally, budget airlines contribute to development of cities’ infrastructure as they make airports more profitable due to the frequency of flights and the number of passengers (Kotler et al. 2008). These are the three major factors that stimulate the growth of budget airlines.

Europe’s New Budget Airlines

There are a lot of factors that enable European budget airlines to keep their prices low. In the first place, their strategy to attract people with low costs and then raise prices to reach the necessary profitability has proved to be successful. Budget airlines do not offer free food onboard. People are ready to get fewer services at a lower price (Kotler et al. 2008). Furthermore, they also order modified airplanes where one toilet is removed and extra seats are put (Kotler et al. 2008). Besides, some budget airline companies decided to cut costs at the expense of maintenance and they claim that the crew can clean everything as the amount of waste is reduced. Apart from that, some companies (e.g. Ryanair) use smaller airports where charges are low. It goes without saying that companies develop a lot of strategies to reduce costs, but these are four major ways exploited by the majority of budget airline companies.

Reference List

Kotler, P, Armstrong, G, Wong V & Saunders, J 2008, Principles of Marketing, Financial Times/Prentice Hall, Harlow.

Vink, L 2009, Hand-out elasticities, lecture notes distributed in … on … December 2012.

Cite this paper

Select style

Reference

StudyCorgi. (2021, January 27). Budget Airlines and Their Growth Factors in Europe. https://studycorgi.com/budget-airlines-and-their-growth-factors-in-europe/

Work Cited

"Budget Airlines and Their Growth Factors in Europe." StudyCorgi, 27 Jan. 2021, studycorgi.com/budget-airlines-and-their-growth-factors-in-europe/.

* Hyperlink the URL after pasting it to your document

References

StudyCorgi. (2021) 'Budget Airlines and Their Growth Factors in Europe'. 27 January.

1. StudyCorgi. "Budget Airlines and Their Growth Factors in Europe." January 27, 2021. https://studycorgi.com/budget-airlines-and-their-growth-factors-in-europe/.


Bibliography


StudyCorgi. "Budget Airlines and Their Growth Factors in Europe." January 27, 2021. https://studycorgi.com/budget-airlines-and-their-growth-factors-in-europe/.

References

StudyCorgi. 2021. "Budget Airlines and Their Growth Factors in Europe." January 27, 2021. https://studycorgi.com/budget-airlines-and-their-growth-factors-in-europe/.

This paper, “Budget Airlines and Their Growth Factors in Europe”, was written and voluntary submitted to our free essay database by a straight-A student. Please ensure you properly reference the paper if you're using it to write your assignment.

Before publication, the StudyCorgi editorial team proofread and checked the paper to make sure it meets the highest standards in terms of grammar, punctuation, style, fact accuracy, copyright issues, and inclusive language. Last updated: .

If you are the author of this paper and no longer wish to have it published on StudyCorgi, request the removal. Please use the “Donate your paper” form to submit an essay.