ABSTRACT
Passengers feel that they are paying high fares for marginal and commoditized service, especially when they encounter hassle at various touchpoints of the travel cycle. Full service airlines have tried to cater to the needs of a far too wide array of customer segments while satisfying only a small percentage of passengers in each segment. However, while airline alliance partnerships have broadened the individual networks of airlines, passengers continue to be frustrated by the inconsistency in the quality of service advertised and provided by various members in alliance partnerships. Airlines have, in general, looked upstream to create value with respect to their products. The US-based Spirit Airlines and Allegiant Air, for instance, target extremely price sensitive travelers in US domestic and regional markets. These passengers are willing to trade off lower fares for less frequent service, in the case of Allegiant Air, or more densely configured aircraft, in the case of Spirit Airlines.
