This post is also available in: Français (French) Español (Spanish)
Choosing a low-cost strategy means taking decisions regarding your marketing, your employees and your staff to make economies of scale and gain a competitive advantage.
How to get started?
Opting for a low-cost strategy may mean choosing a departure hub close to a city with a high annual passenger traffic. But don’t get it wrong, as in this case it is very important to perform external audits on different hubs of the region to know which one has the lowest taxes. Charges reduction come with low-cost… and it is not insignificant. Besides, it could be a good idea to perform external audits on the destinations you will choose.
To increase the capacity of low-cost passengers, you may configure your aircraft so they have an important proportion of economy seats. But remember to keep an eye on the remaining demand too. As for purchasing or leasing, the choice is yours…
It’s up to you to change prices by decreasing the economy ticket prices within reason, it may increase the demand in some cases. Don’t hesitate to perform price simulations before changing your prices, this way you can see what effect results from your change without waiting a full day.
What choices can I make?
You can make some choices in the R&D to reduce your costs, for example in:
- General research:
Reduce the cost of audits by hiring less qualified staff.
- Services research:
Develop your low-cost services to offer services related to your low-cost strategy.
- Aircraft research:
Develop the multiple aircraft research so you can make group purchase and benefit from discounts.
- Cargo research:
If you have unlocked the cargo option, you can develop basic researches to improve your low-cost cargo strategy.
Alliances, low-cost partners
Joining an alliance can also help you receive valuable advice from more experienced players and enable you to benefit from hub sharing or aircraft group purchase to do substantial savings.