7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024

Post Published October 28, 2024

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7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Legacy Airlines Now Match Basic Economy Fares with Budget Carriers Daily





The landscape of air travel is changing, with legacy airlines increasingly vying for budget-conscious travelers. They're doing this by aggressively matching the basic economy fares offered by low-cost carriers. This shift is paying off, with some major airlines reporting a significant surge in basic economy ticket sales—a 35% increase in some cases compared to last year. The price difference between these basic economy fares and traditional economy tickets is substantial, especially on longer routes like transatlantic flights, where the savings can exceed $150. It's a clear signal that legacy airlines are responding to a market where budget-friendly travel is in high demand. This move is largely fueled by external pressures: the desire to boost profits amid competitive pricing environments and the impact of lower oil costs. Naturally, this new focus on budget travel comes with compromises. Basic economy fares, while attractive in terms of price, often come with limited amenities like the inability to pre-select seats or, in some cases, the absence of free changes. Travelers are confronted with a more nuanced decision-making process. Do they prioritize the comfort and flexibility often associated with legacy airlines, or do they opt for the lowest possible fares offered by the ultra-low-cost carriers, understanding that they may have to sacrifice amenities along the way? The decision depends on the priorities of each traveler, highlighting a more intricate landscape within the airline industry.

Legacy carriers are increasingly mirroring the pricing strategies of budget airlines, offering basic economy fares that compete directly with the low-cost carriers' offerings. This shift seems to be a response to a growing number of travelers prioritizing affordability, likely fueled by the current economic climate.

It's fascinating to see legacy airlines employing more dynamic pricing algorithms, making fares more fluid and competitive. This, in turn, has made certain destinations more accessible to budget-conscious travelers. This development suggests that the traditional distinctions between legacy and budget airlines are becoming less pronounced.

While this increased competition has been driven by factors like fluctuating oil prices and pressure to increase profits, it is noteworthy that many legacy carriers are still offering a wider range of services than low-cost carriers. For instance, they often maintain the option of a full-sized carry-on bag in basic economy fares. This feature may still attract some travelers who don't want the added costs and restrictions imposed by many ultralow-cost carriers.

It seems reasonable to assume this competitive pressure will continue as legacy airlines adapt to the growing dominance of budget airlines in certain sectors. It is going to be interesting to see how the landscape evolves, as both airlines strive to balance price sensitivity and a need to maintain customer loyalty. We could potentially see a further erosion of traditional airline amenities and services if the competition intensifies.

Ultimately, the increased competition might benefit travelers by creating a more diversified and price-sensitive air travel market. However, we will likely also see the rise of a more complex set of choices, necessitating more careful scrutiny of the terms and conditions of different fares before making travel decisions.

What else is in this post?

  1. 7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Legacy Airlines Now Match Basic Economy Fares with Budget Carriers Daily
  2. 7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Full-Service Airlines Add Point-to-Point Routes Beyond Major Hubs
  3. 7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Low-Cost Airlines Upgrade Their Business Class Experience
  4. 7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Traditional Airlines Cut Back on Free Checked Bags and Meals
  5. 7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Budget Carriers Expand Airport Lounge Networks Through Partnerships
  6. 7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Both Airline Types Now Compete Fiercely for Loyalty Program Members
  7. 7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Full-Service and Budget Airlines Share Many Aircraft Types in 2024

7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Full-Service Airlines Add Point-to-Point Routes Beyond Major Hubs





7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024

Full-service airlines, traditionally reliant on hub-and-spoke networks, are increasingly adding direct flights between smaller cities and popular destinations. This shift towards point-to-point routes is a reaction to the growing popularity of low-cost carriers (LCCs), who've long used this strategy. By offering these direct routes, legacy carriers aim to compete more effectively with the budget airlines and better cater to travelers prioritizing convenient, straightforward trips.

This move is part of a larger trend of legacy airlines trying to adapt to challenges in the industry, including rising fuel prices, the ever-present pressure to keep fares low, and competition from airlines around the world. This also has led to legacy carriers starting their own low-cost subsidiaries, further blurring the lines between full-service and budget air travel.

However, as legacy carriers strive for more flexibility and efficiency, the impact on their traditional strengths— like high levels of service and a greater range of amenities —remains uncertain. Customers face more complex choices. While these direct flights from secondary cities might be appealing, it's important to remember that they can potentially come at a cost. Travel decisions are becoming more nuanced, as the distinction between full-service and low-cost airlines gets less clear. Passengers need to consider which priorities matter most in their travel experience as they decide if they prefer the lower fares and minimal frills or if a legacy carrier offers a better combination of price and convenience for their individual travel needs.

Full-service airlines, traditionally reliant on hub-and-spoke networks, are venturing into a new realm by adding more direct, point-to-point routes that bypass major hubs and link secondary cities to popular leisure destinations. This shift is a strategic maneuver to counter the growing influence of low-cost carriers (LCCs) and adapt to a rapidly evolving travel landscape.

The decision to adopt point-to-point operations stems from the increasing competitive pressures legacy carriers face. The global economic climate, coupled with soaring fuel prices and the persistent challenge of Gulf and low-cost carriers, has forced many full-service airlines to re-evaluate their strategies. Some have even gone as far as establishing subsidiary airlines that operate more like budget carriers, effectively competing directly with LCCs on price and service offerings.

This strategy mirrors the traditional approach of LCCs, which have long been focused on point-to-point connectivity, typically utilizing smaller regional airports to keep costs down. Deregulation in the aviation industry paved the way for LCCs to flourish, particularly in shorter European routes.

Interestingly, the legacy carriers are also implementing operational changes, including technology and process improvements to streamline their operations, hoping to emulate some of the efficiency gains seen within the LCC model. However, the question of whether this will lead to congested airport operations or not remains a relevant area of study and scrutiny.

The dynamic interplay between pricing, service quality, and consumer preferences has never been more pronounced. Airlines are employing more agile pricing models, mirroring the strategies of LCCs. This means that even travelers with more flexibility might be enticed by the lower prices full-service airlines are offering in select instances. Passengers are confronted with an intricate set of choices based on factors beyond just price—including the level of service, baggage allowances, and the allure of frequent flyer benefits. Essentially, the lines between these two business models are blurring, making it hard to predict how this new dynamic will play out over time. It will be interesting to see how the landscape evolves in the coming years and how this dynamic will continue to shape customer choice and influence traveler behaviors.



7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Low-Cost Airlines Upgrade Their Business Class Experience





Budget airlines are increasingly upping their game when it comes to business class, offering a more compelling alternative to traditional airlines in 2024. Business class upgrades on some long-haul flights can be had for as little as $400, making it a more attractive option for travelers. While these carriers have typically focused on keeping costs down, we see them now expanding their offerings, particularly on longer routes. This includes experimenting with more premium options and making better use of newer aircraft like the Boeing 787 and Airbus A350 to offer competitive amenities. Essentially, many of the features that once differentiated legacy airlines from their budget competitors are now being adopted by the low-cost carriers. This blurring of lines makes it harder for travelers to decide which type of carrier is truly the best fit for them. It boils down to a more sophisticated assessment of price, convenience, and the kind of travel experience you value. Ultimately, this could mean travelers benefit from greater choices and more competitive prices, but also a more intricate decision-making process when planning trips.

The landscape of air travel is experiencing a fascinating shift, particularly in the business class segment, as low-cost carriers (LCCs) are actively improving their offerings. It's becoming increasingly hard to distinguish between legacy and budget airlines in certain areas. This trend raises some interesting questions regarding the future of the airline industry.

LCCs, known for their stripped-down approach and emphasis on affordability, are now presenting a more refined business class experience. This includes introducing larger, more comfortable seats and upgraded dining options, features traditionally associated with legacy airlines. It's a compelling development, aimed at attracting travelers seeking both comfort and value. Interestingly, this strategy can lead to a significant reduction in the cost of business class tickets, sometimes by hundreds of dollars per leg, particularly on longer routes. Some airlines even offer upgrades for as little as $200, mostly through the use of a mixture of points and cash, with upgrade availability usually 12 weeks prior to departure.

This evolution in LCCs' business model suggests a deeper understanding of passenger preferences and the market's need for more flexible options. Travelers now have a broader range of choices and are no longer restricted to the traditional binary decision between ultra-low-cost fares and the more comprehensive offerings of traditional carriers.

However, as with any change, this trend also brings complications. The pricing structure in the business class segment is becoming more dynamic. LCCs, like some of the full-service carriers, have adopted sophisticated algorithms to react to demand, resulting in varying fares based on a multitude of variables. In simpler words, fares for business class can be very volatile in either direction, reacting to overall passenger demand. This dynamic, while positive for passengers in many cases, can also make it difficult to predict the true cost of a ticket weeks before departure.

Another development in the premium travel sector relates to the rise of culinary experiences in the sky. LCCs are partnering with renowned chefs to create elevated menus for their business class passengers, essentially bringing Michelin-star quality to a broader audience. This strategy is an effective approach for gaining competitive advantage and is a testament to how LCCs have evolved their strategies.

Furthermore, LCCs are now investing in new technologies to improve their service offerings. This includes app-based seat selections and on-demand entertainment, amenities which were previously a domain of legacy airlines. These improvements create a level playing field in some respects, and help to differentiate low-cost airlines from each other. Additionally, some are rolling out programs that match the frequent flyer programs offered by larger airlines in terms of perks like priority boarding and airport lounge access. This is yet another sign of how the traditional distinction between legacy carriers and LCCs is diminishing.

The implications of these developments are complex. They indicate a more fragmented market where the traditional distinctions between airlines are blurring. It's worth monitoring the overall impact of LCCs on route networks and competition, particularly in regional markets. This development could lead to adjustments in flight frequencies and perhaps a change in traveler behavior regarding preferred airlines. It will also be fascinating to see how this transformation influences the evolution of technology, customer expectations, and the general future of travel in the coming years.



7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Traditional Airlines Cut Back on Free Checked Bags and Meals





7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024

The airline industry continues to evolve in 2024, with a notable shift in the offerings of traditional airlines. Many legacy carriers, including well-known names like Delta and United, have been reducing or eliminating complimentary services like checked bags and meals. This means travelers are often facing higher costs, with the average fee for a checked bag on a domestic flight now hovering around $35. The decision to cut these services is likely driven by a desire to increase revenue and match the pricing models of budget airlines.

This change creates a more complex decision-making process for travelers. While budget carriers like Frontier or Spirit have always relied on ancillary fees, the trend toward eliminating free amenities in legacy airlines is starting to blur the lines between these two types of carriers. Budget airlines, however, still generally offer a lower base fare, often about 20% cheaper than legacy airlines, especially for early bookings. In fact, some airlines like Southwest have continued to offer two free checked bags, giving them a distinct competitive advantage. Travelers now need to carefully evaluate their needs and priorities, weighing the trade-off between lower initial airfare and the potential costs of optional services when choosing between legacy and low-cost options. The current situation puts a greater emphasis on understanding the overall cost of a flight, factoring in not just the ticket price but also any added fees for luggage, meals, or seat selection.

The traditional airline model, once synonymous with included amenities like checked bags and meals, is undergoing a transformation. We're seeing a shift where these carriers are increasingly adopting a "pay-for-what-you-use" approach, often leading to higher overall travel costs for passengers. For instance, a single checked bag can add $35 or more to a ticket, quickly eroding the initial appeal of a seemingly low base fare.

It appears that a significant portion of travelers are acutely aware of the overall cost of their trip, including these often-hidden fees for luggage and food. This focus on total cost has made the pricing strategies of both low-cost and legacy carriers more competitive. It's a fascinating dynamic – airlines are now forced to be more transparent in their pricing as passengers become more discerning about value.

Interestingly, even a small concession like permitting a full-sized carry-on in a basic economy fare can significantly influence ticket sales, boosting them by as much as 20% for some airlines. This finding challenges the assumption that budget-conscious travelers solely prioritize the absolute lowest base fare. There's clearly a nuanced set of preferences when it comes to what constitutes a "good deal."

The adoption of advanced algorithms and dynamic pricing is another compelling trend. Legacy carriers, in particular, are using machine learning to adjust fares in real-time based on demand. This explains the increasing unpredictability of ticket prices, even occasionally resulting in legacy carriers matching low-cost carrier prices. The implication is that securing a truly “cheap” flight might involve a degree of flexibility and willingness to adapt to market fluctuations.

The low-cost carrier segment has also seen a surge in business-class upgrades, particularly on longer routes. They are offering a competitive premium experience at significantly reduced costs – sometimes for as little as $200. This makes a more comfortable and upscale journey accessible to a wider range of consumers, indicating a shift towards demand for affordable comfort.

A somewhat surprising observation is that even with the push towards ancillary revenue, some traditional carriers have found that a significant percentage of passengers don't particularly value complimentary meals. This shows an evolving traveler mindset where a “pay-as-you-go” model is gaining acceptance. It could indicate that value-conscious travelers are becoming more willing to opt-out of services if it lowers the initial ticket cost.


However, some degree of brand loyalty persists. A portion of travelers still prefer the familiar and perceived reliability of legacy airlines, even if it means paying for add-ons. This preference for established brands highlights a factor beyond simple pricing in the decision-making process.


The in-flight experience itself is also becoming more competitive. The growing trend of partnerships between low-cost airlines and renowned chefs has resulted in a significant boost in customer satisfaction ratings. Low-cost carriers are finding innovative ways to improve their overall service offering, demonstrating a desire to meet – and perhaps exceed – customer expectations in certain areas.


Another key factor in airline selection is flexibility. Passengers increasingly value the ability to make changes to their travel plans without incurring huge fees. Flexibility in fare rules is a rising differentiator, underscoring the growing need for adaptable travel options.

The use of dynamic pricing algorithms brings its own set of complexities. It's a double-edged sword for travelers, as it introduces unpredictability. There's a considerable number of passengers who booked flights well in advance, only to see the fares drop significantly later on. This could suggest that last-minute travel planning strategies are worth considering and researching for certain routes.


The ever-evolving landscape of air travel is making choices increasingly complex for passengers. The lines between the traditional airline model and the budget carrier approach are blurring. Passengers are encouraged to be more discerning and informed when it comes to evaluating the different fare types and service options available. The days of a simple choice between a full-service or budget airline are, it appears, long gone.



7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Budget Carriers Expand Airport Lounge Networks Through Partnerships





Budget airlines, known for their emphasis on affordability and basic service, are beginning to offer airport lounge access through partnerships. This signifies a change in strategy, moving away from their traditional focus on the lowest possible fares. The airline industry is becoming more competitive, and lounge access is now a valuable amenity that can influence traveler decisions. By partnering with established lounge networks, budget carriers can provide a more comfortable airport experience for their passengers, a feature previously associated mostly with full-service airlines. This trend further blurs the lines between legacy carriers and budget airlines, as more amenities commonly found in traditional airlines are becoming available on budget flights. This shift reflects a broader trend within the industry, where budget airlines are increasingly providing higher levels of service, making the traditional decision between a legacy or budget carrier a much more nuanced one for passengers.

Budget airlines, known for their bare-bones approach to air travel, are increasingly offering access to airport lounges, a service traditionally associated with full-service carriers. This is achieved through partnerships with established lounge networks or through their own loyalty programs.

The concept of "low-cost" within these airlines refers to their focus on operational efficiency rather than the ticket prices offered to consumers. This shift toward offering lounge access signifies a change in the industry and is a response to increasing competition. It also seems to reflect a changing travel landscape where travelers are increasingly valuing amenities and a more comfortable airport experience, even on budget trips.

Roughly 40% of lounge users gain access through airline credit cards, while 35% are members, and 20% have earned access through loyalty status or higher-class tickets. This leaves a small share (5%) utilizing day passes. This data reveals that lounges are becoming a more substantial business model for airlines, though the costs involved in construction and maintenance must be considered. The move to broaden lounge access by budget airlines makes a statement, implying that airport lounges are becoming less a "premium" service, though one can still expect these lounges to remain a money-making venture for the airlines.

The success of Ryanair, a budget airline heavily influenced by Southwest Airlines, demonstrates that operational efficiency, including ancillary fees, can drive significant profits. This model is evident in Ryanair's financials, where they saw ancillary revenue accounting for around 45% of their total revenue in a recent fiscal year. Airlines, both full-service and budget, are looking for ways to increase revenue, and the airport lounge is a revenue source that can generate a significant return on investment.

In response to the budget airlines, full-service airlines are implementing similar cost-cutting measures, leading to a blurred distinction between the two. The increased competition has forced them to adapt their business models and services, including the implementation of basic economy fares.

The rise of budget airlines continues to reshape the landscape, and it appears airport lounge access, once a niche benefit, is becoming more mainstream, further fueled by technological advancements such as mobile app integration. Airlines recognize the increasing appeal of these spaces, and one wonders if the increasing volume of lounge traffic generated by budget passengers will put a strain on facilities and airport operations. Airlines are improving lounge amenities, which is a clear indication that the service is not merely about a quiet spot to relax, but rather an experience that is being upgraded by both budget and full-service carriers, likely reflecting an awareness of passengers' increasing expectations. The expansion of airport lounges for budget carriers is still a new development, and its implications for airport operations and the travel experience remain to be seen.






7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Both Airline Types Now Compete Fiercely for Loyalty Program Members





The competition for loyal travelers has intensified as both legacy and budget airlines are actively vying for membership in their loyalty programs. The focus has shifted from simply rewarding miles flown towards a more spending-based approach, influencing how airlines measure and incentivize customer loyalty. This means that earning elite status or rewards may now hinge more on how much you spend on flights and related purchases, rather than just the sheer number of miles traveled. For example, Delta has altered its Medallion program, making it more challenging to reach higher tiers by focusing on spending. At the same time, budget airlines like Southwest have successfully integrated credit card partnerships and revamped their rewards programs, illustrating how lucrative these loyalty programs have become for boosting revenue and retaining customers. This shift makes it crucial for travelers to consider the overall value proposition of loyalty programs—not only the upfront ticket price—when choosing an airline, recognizing the evolving ways in which airlines are cultivating long-term customer relationships.

Both legacy and budget airlines are now actively competing for the same loyalty program members. This is a notable shift in the industry, as budget airlines are now offering features like priority boarding and lounge access that were once the domain of full-service carriers. This convergence of benefits is making loyalty programs more appealing across the board, and it's causing travelers to reassess how they view different airline offerings.

It's also quite surprising to see how much ancillary revenue some low-cost airlines are now generating. In some cases, around 45% of their total revenue comes from add-ons like baggage fees and seat selection. This development fundamentally changes the meaning of "low-cost." It underscores that even the seemingly budget-friendly airlines are finding ways to capture revenue from services that were traditionally free with full-service tickets.

Moreover, both airline types are incorporating dynamic pricing, where algorithms adjust ticket prices in real time. This used to be more common among budget airlines but is now being widely adopted by legacy carriers. It creates a more competitive pricing environment, making it challenging for travelers to always anticipate and predict how fares will fluctuate.

A very interesting development is the focus on customer experience improvements by budget airlines. They're not just relying on low fares anymore. Instead, we see investments in premium services, such as chef-curated meals and more comfortable seating. It appears that budget airlines are aggressively competing directly with legacy airlines in a bid to attract customers who value both comfort and affordability.

Another key development is the availability of airport lounge access on budget airlines. Traditionally, lounges were associated exclusively with full-service carriers. This trend suggests that passengers are increasingly expecting more amenities and a better travel experience, regardless of the price point.

It's becoming evident that the decision-making process for passengers is getting much more complex. The days of simply choosing between a low-fare or a full-service airline are becoming a thing of the past. Travelers now face a choice between a truly bare-bones, lowest-fare option and possibly having to pay for add-ons to get a more comfortable experience. They must calculate the total travel cost, rather than just relying on the initial ticket price, before making a decision.

Furthermore, despite the cost-cutting measures taken by some legacy carriers, certain travel preferences seem to be holding steady. A significant number of passengers still appreciate complementary features like meals and checked bags. This highlights an ongoing preference for traditional services among a certain segment of the travel population, which has implications for the overall strategy of airlines.

Business class travel is also affected by this change. Budget airlines are introducing competitive business class offerings, often at drastically lower prices. This is an intriguing development that shows a novel approach to tapping into a higher-value passenger segment with enticing prices.

Both airlines also increasingly rely on technology to enhance the passenger experience. This includes mobile booking systems, upgrades, and various forms of integrated flight management. It highlights a wider technological adoption across the travel industry driven by passengers' desires for easier and faster bookings, planning, and travel modifications.

Ultimately, all these trends are fundamentally shifting the perception of "value" in air travel. The lines between what we traditionally considered low-cost and full-service are becoming increasingly blurred. This dynamic makes it critical for travelers to stay vigilant, constantly evaluating what constitutes a good deal and which features are most important to them during their travels. The days of making a simple choice are over, but travelers now have more flexibility and options than ever before.



7 Factors That Make Choosing Between Legacy and Low-Cost Airlines Less Obvious in 2024 - Full-Service and Budget Airlines Share Many Aircraft Types in 2024





The lines between full-service and budget airlines are becoming increasingly blurred in 2024, especially when it comes to the aircraft they use. Both types of carriers are operating a similar range of aircraft models, including newer, fuel-efficient planes. This means budget airlines are now competitive on longer routes previously dominated by legacy carriers, and legacy carriers are increasingly competing in the budget travel space. This trend reflects a broader shift in the airline industry as carriers, whether focused on lower fares or a broader service package, strive to meet travelers' needs for a more affordable and convenient travel experience. This adaptation often involves a mix of offering lower base fares, adding more frills to budget travel, and streamlining service options across all airline categories. This means that passengers have to think more carefully than ever about what matters most when choosing a flight: low fares or a more comfortable experience. The days of making a simple decision about airline type seem to be over, replaced by a more detailed evaluation of service quality, ticket prices, and the cost of extra amenities or add-on services.

One interesting observation in 2024 is the convergence of aircraft types used by both full-service and budget airlines. It's not uncommon to see Boeing 737s and Airbus A320s operating flights for both types of carriers. This raises a question: If the hardware is so similar, how do airlines differentiate themselves? Is the key to success simply focused on the operational efficiency that budget airlines can achieve through simplified processes and fewer aircraft types?


It seems that the physical differences in the planes themselves are less important, and other aspects of the travel experience are where competition has sharpened. Budget airlines are streamlining their operations—even aiming for incredibly short turnaround times of just 25-30 minutes—which gives them an edge in busy airport environments. At the same time, they are adopting elements typically found on full-service airlines, like improved cabin interiors and on-demand entertainment systems. This creates a more level playing field in terms of the amenities offered, and potentially makes the choice between a full-service and budget carrier even more intricate.


This shift isn't limited to the more standard amenities. The trend of luxury on a budget continues to grow. Some budget carriers now have fully reclining seats in business class for long-haul flights. This is a noteworthy shift, as it presents a compelling alternative for price-sensitive travelers who still seek a touch of comfort. The lines between full-service and budget are becoming even more obscure in the premium travel category.

Meanwhile, traditional carriers are responding to budget airline strategies by adopting some of the same tactics. "De-hubbing," a strategy that has seen them create more direct point-to-point routes to smaller destinations, is one example of this. This creates more competition with budget carriers on non-hub routes, making a wider range of travel accessible and affordable.


It seems that loyalty programs are another area where full-service and budget airlines are increasingly resembling each other. Budget airlines are aggressively including formerly exclusive benefits like seat upgrades and priority boarding in their programs. This development adds to the increasing indistinguishability between both types of airlines, and particularly blurs the lines in the premium travel market.

Another interesting development is that airport lounges, traditionally associated with legacy carriers, are seeing a growing number of budget passengers. To handle the changing customer base, lounges are being improved and adapted. Budget airlines are even introducing meal services, including options prepared by well-known chefs, essentially turning the old adage of "low cost = low quality" on its head. It appears that budget airlines are embracing a greater degree of sophistication to better compete with legacy airlines on various fronts.

Both airline types have increasingly relied on the use of machine learning algorithms for pricing. This means that prices can fluctuate significantly based on various factors, which makes it difficult to predict ticket prices and sometimes creates surprising fare deals. Perhaps travelers should become more flexible and watch for deals with the current approaches to airline pricing.


The entire airline landscape seems to be evolving quite rapidly, blurring the line between "budget" and "full service" more every day. It is a complex, but perhaps ultimately positive, situation that may require more care in the planning process and a better understanding of what travelers truly value most in a flight.


See how everyone can now afford to fly Business Class and book 5 Star Hotels with Mighty Travels Premium! Get started for free.