Low Cost Business Model Evolution and Transitioning
While consolidation continues among Legacy Carriers, Low Cost Business Models continue to evolve. Williams Aviation Consultants Inc. offers special consulting skills for Low Cost Business Model Evolution and Transitioning, ranging from experience gained on the evolution of the easyJet business model to more recent trends where, for example, many successful carriers rate ancillary sales of car rentals, vacation packages and other services and products as being nearly as important as passenger revenues.
The true low cost business model eliminates complexity and strives for a high level of efficiency around the lowest cost base achievable. For example, the largest discretionary area of costs (outside of operating) usually lies with “cost of sale”. So, the ultimate solution is to achieve a single direct online booking channel where even a call center is not an additional distribution or selling channel, but is simply there to support the single distribution channel.
Adoption of a low cost business model must be complete. Its various components are heavily integrated, which means that the model is likely to fail if activities are introduced that are unaligned or in conflict. Williams Aviation Consultants Inc. can supply resource to evaluate your existing model around such disciplines, or assist in guiding transitioning.