Airlines revenue management and Low cost carrier

Maximize revenue is a challenging job in the aviation industry as Low Cost Carrier is just fixed up fare on the base of operating cost

Low cost carrier is a burden in aviation industry

multiple airlines on single route offers competative air fares ,on the otherhand Low Cost Carrier is just fixed up fare on the base of operating cost ,they dont allow Free baggage allownace,free in-flight meal etc and make revenue by imposing charges extra for baggage,food,seat selection etc.Ancillary revenue is the main product of low cost carrier. Low cost carriers are revenue hunter ,they publish lower air fare but finally they charges huge cost for complete journey.Actually cummulative cost per passenger is much higher in Budget carrier.They just spilt up total cost per pax and gradually disclose sirvice cost one by one. they dont allow Free baggage allownace,free in-flight meal etc and make revenue by imposing extra charges for baggage,food,seat selection etc.Ancillary revenue is the main product of low cost carrier.

they dont allow Free baggage allownace,free in-flight meal etc and make revenue by imposing charges extra for baggage,food,seat selection etc.Ancillary revenue is the main product of low cost carrier.