A Study on the shift of tourist demand towards low-cost carriers

Abstract

The aviation industry plays a vital role in connecting nations, promoting global trade, and driving the growth of tourism. Over time, the structure of the airline industry has been divided into two main business models, Full service carriers (FSCs) and Low cost carriers (LCCs), each catering to different market segments and passenger expectations. Full service carriers operate on a traditional model that emphasises comfort, quality service, and extensive connectivity providing a range of in-flight amenities. In contrast, Low-Cost Carriers adopt a simplified, cost-efficient operational approach aimed at minimising expenses and offering significantly lower ticket prices. This approach allows them to attract price-sensitive travellers and first-time flyers.