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In: Finance

What are the challenges Spirit Airlines faces in keeping prices low and improving service?

What are the challenges Spirit Airlines faces in keeping prices low and improving service?

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Expert Solution

The price fixation is the best startegy they use

In 2007, Spirit Airlines chose to adopt the a la carte pricing model first offered by Ryan Air in Europe in 1985. This model is completely unlike the pricing model for any other airline flying in the United States. If you don't understand how Spirit works differently from any other airline YOU WILL WALK AWAY FROM YOUR TRAVEL EXPERIENCE FEELING ANGRY, DISAPPOINTED AND CHEATED.

Spirit has cut everything extra they can think of out of your ticket to make it as cheap as possible. This means your base fare:
- Will NOT include the cost of handling or transporting your checked bags.
- Will NOT include the use of space on the plane to store a medium-to-large carry-on bag.
- Will NOT include very much leg room. (Spirit's base fare offers the very least leg room in the airline industry.)
- Will NOT include the cost of printing out a boarding pass at the airport.
- Will NOT include seat selection. If you want to sit with someone -- like your children, for example -- that is extra.
- Will NOT include the regular maintenance a reclining seat requires. So no reclining seats.
- Will NOT include an in-flight beverage or snacks.
- Will NOT include in-fight entertainment or WiFi.
- Will NOT necessarily include a seating area fully cleaned from the previous flight.
- Will NOT include the infrastructure of hundreds of extra jets and flight crews.
- Will NOT include a large staff of customer-service professionals, ready to respond to complaints at a moment's notice.
- Will NOT include tranferable, refundable or changeable tickets. Once you give them your money, there are no changes allowed. AT ALL.
- Will NOT include ANY of the flexibility you've come to expect from any other airline, or any other U.S. business, for that matter. Their policies are their policies. They will never make exceptions. Ever.

Read that entire list again, just to understand: whatever you have come to expect from an airline ticket, you are NOT getting any of that with Spirit's base fare. THIS IS A COMPLETELY DIFFERENT MODEL.

Last year CNBC reported that 11.73 out of every 100,000 passengers made a complaint , and spirit airlines is the one which more number of complaintd are registered .


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