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Global Travel Trend for 2014: Low-Cost Carriers Continue to Eat the World

@rafat

Mar 04, 2014 8:00 am

Skift Take

The low-cost carriers are bringing the startup-like innovation and disruption in the incumbent-heavy airline industry. But are they doing it with an unfair advantage — especially when it comes to labor — as many critics claim?

— Rafat Ali

Free Report: The Changing Business of Extended-Stay Hotels

The interior of Norwegian Air, one of the big disruptors in low cost long haul travel.


Early in January we released our big report, “14 Global Trends That Will Define Travel in 2014,” outlining the major trends that will define travel this year.

Below is one of the trends we see as playing out over 2014 and beyond.

Download the Report

Low-cost carriers (LCCs) are continuing their inexorable march across the world. The year 2013 marked the first time when U.S. low-cost carrier unit revenues on domestic routes exceeded that of legacy mainline carriers. In Asia and the Middle East LCCs are outstripping every other sector in aviation.

The success of Spirit Airlines and other so-called ultra low cost carriers is generating copycats and putting pressure on now-mainstream airlines such as Southwest and JetBlue.

And LCCs are moving back into long haul: Norwegian, Wow Air, and Westjet are all looking at the success of AirAsiaX.

Meanwhile, LCCs such as easyJet, Ryanair, JetBlue and Southwest have upped their games in a variety of ways to attract more business travelers.

Related Reads:

Check out the 2014 trends below in the presentation, or download them for deeper read. Either way, share them if you like them and think others can benefit from them.

Download the Report

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