Spirit Airlines’ Business Model: How They Keep Prices Low
Introduction
Spirit Airlines is a low-cost carrier that has been making waves in the airline industry since its inception in 1983. The airline’s business model is unique, as it focuses on keeping prices low by offering minimalistic services and charging extra for amenities that other airlines include in their base fares. In this blog post, we’ll explore how Spirit Airlines keeps its prices low and examine its controversial reputation. We’ll also compare Spirit flight change policy to Delta’s flight booking policy to see how the two airlines differ in terms of customer satisfaction.
How Spirit Airlines Keeps Its Prices Low
Minimalistic Approach to Services
One of the main ways that Spirit Airlines keeps its prices low is by offering a minimalistic approach to services. Unlike other airlines that include things like free snacks and drinks, in-flight entertainment, and checked bags in their base fares, Spirit charges extra for these amenities. This allows the airline to keep its base fares low, while still giving customers the option to purchase additional services if they choose to do so.
Ancillary Revenue Streams
Another way that Spirit Airlines keeps its prices low is by utilizing ancillary revenue streams. These are additional sources of revenue beyond the base fare that airlines can charge for things like seat upgrades, priority boarding, and baggage fees. Spirit Airlines is known for charging fees for things like carry-on bags, checked bags, and seat assignments. While some customers may find these fees frustrating, they allow the airline to keep its base fares low and still generate revenue.
Utilizing Secondary Airports
Spirit Airlines also utilizes secondary airports to keep its prices low. These airports are often smaller and less busy than major airports, which means that they can charge lower landing fees and other operational costs. This allows Spirit to keep its costs low, which is reflected in the airline’s base fares.
Cost-Effective Fleet Management
Finally, Spirit Airlines has a cost-effective fleet management strategy. The airline primarily uses the Airbus A320 family of aircraft, which is known for being fuel-efficient and cost-effective. This allows the airline to keep its operating costs low, which is reflected in the airline’s base fares.
Spirit Airlines’ Controversial Reputation
Criticism of the Company’s Policies
While Spirit Airlines has been successful in keeping its prices low, the company has faced criticism for its policies. Some customers have complained about the airline’s fees for things like carry-on bags and seat assignments, while others have criticized the airline’s customer service. In 2020, Spirit Airlines was fined by the Department of Transportation for violating consumer protection regulations related to flight cancellations.
Analysis of Customer Satisfaction
Despite its controversial reputation, Spirit Airlines has a loyal customer base. The airline has a 3.4-star rating on Yelp, with many customers praising the airline’s low fares and willingness to work with customers to resolve issues. However, others have reported negative experiences with the airline’s customer service and policies.
Comparison to Other Low-Cost Carriers, including Delta Airlines
When comparing Spirit Airlines to other low-cost carriers, like Delta Airlines, there are some notable differences. While both airlines offer low fares, Delta includes more amenities in their base fares, such as free snacks and drinks and in-flight entertainment. Delta also has a more flexible flight change policy, allowing customers to change or cancel their flights without penalty in 24 hours of booking.
Spirit Flight Change and Delta Flight Booking: A Comparison
Spirit Airlines has a strict Spirit flight change policy, with fees ranging from $90 to $120 per passenger for changes made online or over the phone, and up to $200 for changes made at the airport. In contrast, Delta allows customers to change or cancel their flights without penalty within 24 hours of Delta flight booking, and even offers a flexible travel waiver policy for customers affected by unexpected events, like weather or illness.
When it comes to customer satisfaction with these policies, it’s clear that Delta has an advantage. Many customers appreciate Delta’s flexible policies and customer service, while Spirit’s strict policies can be frustrating for some.
Conclusion
Overall, Spirit Airlines’ business model of keeping prices low by offering minimalistic services and charging for additional amenities has been successful in attracting customers. However, the company’s controversial reputation and strict policies have also drawn criticism. When compared to other low-cost carriers, like Delta Airlines, it’s clear that there are some notable differences in policies and customer satisfaction. Ultimately, it’s up to individual customer to decide which airline best suits their needs and preferences.