Low-cost airlines are notorious for charging low fares and charging passengers for everything from seat selection to ordering soft drinks.

But Frontier and Spirit, leaders in this model, have come up with a different strategy: eliminating flight change and cancellation fees for some or all customers.Industry experts say the change of heart is all rooted in business.

Both Spirit and Frontier have been hurt financially and are hoping to better compete with larger airlines that have started offering their own simplified fares. Despite rising costs, low-cost airlines are trying to win customers in non-leisure markets where they already have big rivals.

That means airlines can’t rely on the old model, said Mike Boyd, president of aviation consulting firm Boyd Group International, who called airlines’ previous flight change fees “usury.” “Airlines have to do better now,” Boyd said.

Spirit passengers no longer have to pay to change or cancel their flights. These fees previously ranged from $69 to $119, depending on when the changes were made. There were no fees for changing or canceling flights more than 60 days in advance.

Frontier currently offers a variety of fare categories that incorporate benefits into higher price points, with only the lowest price subject to change or cancellation fees. If you purchase this base fare, there will be a $49 fee for changing your flight between 7 and 59 days in advance, but the fee increases to $99 within 6 days of your flight. cancel Fee The base fare is $99.

Major airlines eliminated change fees early in the pandemic, but now “basic economy” fares generally don’t allow changes. The low-cost carriers’ hope is to appeal to travelers who are willing to pay more — “customers who are less price-sensitive and more restriction-sensitive” — rather than the “premium” customers who help the big airlines survive, he said. Robert W. Mann, aviation industry analyst and consultant.

The changes for both airlines went into effect on Friday. Frontier The news was included The company will also resume customer service by phone for the first time in a year and a half as part of a broader revamp it calls “New Frontier.” finish itextended flight credits, and the promise of free miles if someone finds a cheaper flight elsewhere.

“Today marks the beginning of a new era for Frontier — one of price transparency, no change fees and the lowest total prices,” Frontier CEO Barry Biffle said in a news release. “This is the ‘new Frontier,’ and we’re committed to offering more than the lowest fares — we’re giving you all the options you want, and the customer support you need, when you want it, at the best price.”

Spirit Airlines’ announcement of its new policy wasn’t all that fanciful. The company advertises the removal of fees on its website, but has not made an official announcement. When asked about the changes, the company said in a statement that “many other improvements are in the works.”

“Spirit has been evaluating changes to our products and strategy that will help us become more competitive, improve the guest experience and restore profitability,” the statement said.

Both airlines will continue to charge for things like snacks and drinks that are free on major rivals. Frontier has included many extras in its new packages, but passengers who buy the cheapest fares will still have to pay extra for carry-on bags and seat selection. Spirit will continue to charge for carry-on bags and seat selection.

The changes come as the Biden administration begins to crack down on what it calls “junk fees” charged by companies, including airlines. New recently announced Department of Transportation rules will require airlines to disclose certain fees up front, including fees for changes and cancellations. Airlines are challenging the rules in court.

Aviation consultant Boyd wrote in a blog post this week that the recent changes at Frontier and Spirit Airlines are unrelated to those regulations.

Some industry observers question whether the changes will give airlines the boost they need. But they praised the move as good for customers.

“It’s exciting to see ultra-low-cost airlines trying to create products that consumers actually want to buy,” said travel site founder Ben Schlappig. one mile at a timewrote in the post, “It’s not just an airline that people reluctantly book on when everything else is too expensive.”



Source

Share.

TOPPIKR is a global news website that covers everything from current events, politics, entertainment, culture, tech, science, and healthcare.

Leave A Reply

Exit mobile version