Tough To Compete Low Fare Carriers- Sign Of Bright Future!
19 Aug 2016 in Business
Europe is known as one of the most expensive places for travelling. Apart from expensiveness that is usually associated with Europe, one more thing is closely associated with it are low fare carriers. Low-cost carriers have a very strong presence in all over Europe. There are carrier giants who are providing the low cost services from quite long time now and continue to do so which makes the future of low fare airlines bright enough.
The major reason why low fare airlines are surviving is because their cost base is quite low. Till the time, it remains low; the industry is bound to flourish. The moment, cost base is hiked up; the industry will certainly take a downfall. The low air fare carriers in Europe have acquired share of around 22 % till 2015 and if things go in the same manner, it can raise up to the level of 35% till the year 2024.
The competitors have mixed reactions on whether they can compete with the market leaders when it is about low air fare carriers especially in Europe. The competitors agree on overtaking the giants in the industry only on the basis of same cost base that the market leaders are offering to their passengers.
Although, the cost base can be same, but still there is something which others cannot think to provide in the same area. Some of the major low cost carriers are offering their flights to the destination where it is not possible for the rest of the competitors to do. One more point that makes difficult for the competitors in an aviation industry to compete with these strongly prevalent low cost carriers is that the latter is based in the countries where the labour is not expensive even when compared to France. The competitors have to pay huge amounts as taxes for the same locations which again become a tough situation for the competitors.
In the nutshell, it seems next to impossible for the competitors to compete with the leading low fare airlines. Moreover, in terms of overall cost, it is actually difficult to compete with the giants who have strong foothold in the industry.
Seeing the current situation, the market of low fare carrier seems to be flourishing at a good scale. And there is no stopping of low fare carriers and their services for the people which is a sign of good future for the same.
If you are also willing to travel to Europe and wishing to get your low fare tickets booked, then you can immediately call at Ryanair contact number which is one of the leading low cost airlines functional in UK.