In previous years, discount airlines were kept mostly in local and regional markets and served smaller, hard-to-reach destinations. But with the advent of long-haul carriers offering low, frills-free fares beyond borders, major airlines had to adapt to keep up with cheaper competitors.
To maintain frequent travelers’ loyalty and annual revenue streams, airlines such as Delta Air Lines, United Airlines and American Airlines must do more than simply lower fares. They found lowering prices is the best place to begin their competitive strategy. American and United rolled out “base fares,” guaranteeing a seat on a flight but little else in the way of additional services. These airlines also seek to improve in-flight services, including entertainment options and WiFi connectivity and strength. Airlines like Norwegian Air and WOW Air offer seat-back charging stations on some flights but don’t yet offer in-flight WiFi on long-haul flights.
Big-name carriers also rely on rewards programs to keep customers interested; travelers will essentially have to start at the beginning when switching to new airlines’ frequent-flyer programs. In-flight meal service is also still part of the ticket price for long-haul flights, while Norwegian and WOW offer this service only for an additional fee and with advance notice.
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