Low-cost carriers will spearhead the global aviation industry’s recovery from the pandemic, thanks to high demand for travel close to home. These are the data of a survey conducted by the analytical company GlobalData.
The study involved 1160 people. 43% of them said they are planning a trip within the country in the next 12 months, and another 27% – an international trip within their continent. At the same time, most tourists will choose a low-cost carrier for their trip.
“Domestic short-distance travel will dominate in 2021 as travelers seek destinations closer to their home. Given the significant demand for short-haul flights, tourists will be looking for the most direct option, says Gus Gardner, Associate Travel & Tourism Analyst at GlobalData… “Thus, airlines with a developed domestic and short-haul network will benefit from the increased demand. In addition, long haul flights are often more expensive. Some travelers will seek to cut costs, and those traveling point to point will get more passengers in the recovery process. ”
A recent GlobalData poll, which surveyed more than 21,700 respondents, also found that 87% of respondents were “extremely,” “quite,” or “somewhat” concerned about their financial situation. Moreover, 50% of the same survey “partially” or “completely” agreed that their family budget has decreased over the past year.
“Many travelers will be looking to cut costs, and low-cost airlines are likely to benefit from this. Cost-cutting measures, including streamlining operations and lower wages, will allow them to further reduce ticket prices to attract the attention of budget-conscious travelers who have historically used traditional carriers, ”adds Gardner.
At the same time, according to him, traditional airlines will have an advantage in the form of a fleet of wide-body aircraft, which can also meet the demand on short-haul routes. On the other hand, these types of aircraft tend to have low seating densities and are not always suitable for short haul flights. As a result, the cost of a seat on such flights may turn out to be higher than that of low-cost airlines, which will only push passengers towards the latter.
In addition, carriers flying according to the point-to-point scheme, which eliminates unnecessary stops and transfers at large hubs, will also receive an additional advantage. This is an important factor in sanitary safety, the analytical company emphasizes.
The data of the GlobalData survey find confirmation in the Russian aviation market as well. Thus, airlines operating according to the low-cost model, in particular Pobeda, as well as small airlines making direct flights over Moscow, were able to restore passenger traffic faster than others after the pandemic.
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