5 reasons why LCCs are best placed for advanced retailing
September 8, 2022 on the Sabre Insights Blog
For many organizations and industries, the word ‘change’ often carries with it a negative emotional reaction: fear, anxiety, resistance. We understand that Low-Cost Carriers are often the exception that proves the rule – embracing change and turning it to their advantage.
LCCs accept and embrace the idea that change is inevitable – it’s a case of ‘when’ and not ‘if’. We’ve witnessed firsthand the way they’ve proven time and again their ability not only to adapt and evolve to the world around them, but to actively drive innovation and disruption within the airline industry.
This desire for progression and growth has driven LCCs to push the envelope and they’ve already set off on the journey to a retail-powered future of offers and orders. But we believe that even greater opportunities lie ahead. Opportunities to continue to think differently and build on existing capabilities.
What do those opportunities look like for LCCs?
In the future, we see huge possibilities for LCCs to more easily and economically extend indirect distribution, as well as broaden the types of ancillaries that are being retailed today. In addition, access to advanced data analytics such as AI/ML will enable LCCs to create and retail more personalized and contextualized offers, improving conversion and boosting revenue opportunities.
At Sabre, we’re committed to accelerating and leading industry change – in partnership with our customers – with a scalable yet modular solution. We’re enabling airlines to build the solutions that best meet their needs, at a pace that matches their transformation ambitions.
Here are 5 reasons why we believe Low-Cost Carriers are ideally placed for advanced retailing that would see them grow market share and revenue:
It’s in their DNA
Challenging the status quo is what LCCs were built to do and disruption has been key to their success.
LCCs know how to exploit an opportunity
Blazing their own trail in search of progress is how they first identified a better way of operating an airline business.
LCCs are the masters of upselling
A strong focus on selling air ancillaries that boost margin and add choice/value to travelers makes advanced retailing a logical extension of what LCCs are already doing today.
LCCs are tech savvy
By already utilizing more modern technology than most FSCs, they’re primed for growth and can implement change quickly and effectively.
LCCs are agile
Adaptability and a ‘test and learn’ mentality makes them ideally suited to a future world of advanced ML (Machine Learning) and experimentation
Of course, we recognize things won’t change overnight, but we believe that for LCCs the prospect of a rapid transition to more scalable technology should instill a sense of opportunity; a clear chance to gain competitive advantage against those less willing or less able to embrace change so readily.
If LCCs bring their air ancillary ‘upsell’ mentality into the future – a future with greater possibilities to forge new partnerships, retail a broader variety of ancillaries from third parties and create more personalized and compelling offers – there’s the potential to really shake things up within the industry.