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  • Essay / Low-Cost Carriers and Full-Service Airlines - 896

    Research has been conducted to understand passengers' views and attitudes toward low-cost carriers and full-service airlines. The research focused on a group of passengers, one crowd using a low-cost carrier and the other a full-service airline. The airlines that will be used in the research are Aer Lingus and Ryanair, operating in a fully developed European market, and Malaysia Airlines and Air Asia, currently operating in a recently developing domestic market in Asia. After conducting the survey, the results show that young people are more likely to use low-cost service companies, with Ryanair accounting for 24% and Air Asia 47%, all of which fall into the age group of under 25 years. 87% of the age group were traveling to visit friends and family or for educational purposes and these trips were sponsored by their parents. It is clear from these results that age is a determining factor in choosing the types of aircraft to use for travel. Adult passengers favor full-service carriers because of the additional services they offer compared to low-cost carriers. Traveling in a group is also taken into account for the preferred choice of carriers. As a result, leisure passengers who travel in groups tend to use low-service airlines, while business travelers who typically travel alone tend to use full-service airlines. The results show that Ryanair has 40% of passengers traveling in groups and Air Asia 31%. In terms of booking flights, 78% of Ryanair passengers prefer to use the website, compared to 16% of Aer Lingus passengers who prefer to book their trips through travel agencies. Additionally, 93% of Ryanair passengers surveyed booked their tickets online, indicating that Ryanair is the fifth most searched website in the world...... middle of log......nsport Geography, 19, 1335-1340.Salanti, A., Malighetti, P., Redondi, R., 2012. Low-cost pricing strategies in leisure markets. Tourism Management, 33, 249-256.Zhang, A., Hanaoka, S., Inamura, H., Ishikura, T., 2008. Low-cost carriers in Asia: deregulation, regional liberalization and secondary airports. Research in Transportation Economics, 24, 36-50. Chang, L., Hung, S., 2013. Adoption and loyalty to low-cost carriers: the case of Taipei-Singapore passengers. Transportation Research Part E, 50, 29-36.Malighetti, P., Paleari, S., Redondi, R., 2009. Pricing strategies of low-cost airlines: the Ryanair case study. Journal of Air Transport Management, 15, 195-203.Olipra, L., 2012. The impact of low-cost carriers on the development of tourism in lesser-known destinations. Doctor in economics. Komandorska 118/120, Wroclaw, Poland: Wroclaw University of Economics.