The Impact Of Low Cost Carrier On The F
Futures
The impact of low cost carrier on the future of pricing and revenue management
Received (in revised form): 12th November 2011
Dieter Westermann
Qatar Airways, Qatar Airways Tower 2, Doha, State of Qatar
Dieter Westermann holds the position of Senior Vice President RM Strategy and Solutions at Qatar Airways, the national carrier of the State of Qatar. He has more than 20 years of experience in revenue management business processes and systems, as well as in the area of pricing, reservations and distribution. During his career in the airline business, he worked for multiple carriers including Lufthansa and Swissair. He also got insight into the perspective of system providers, while he worked at Lufthansa Systems in the position of
Director Portfolio Management and Innovations.
Correspondence: Dieter Westermann, Qatar Airways, Qatar Airways Tower 2, Doha, State of Qatar
ABSTRACT The Low Cost Carrier (LCC) business model has changed the airline industry significantly over the previous decade. However, the traditional airlines responded to the newcomers and times are more challenging for the LCCs today. Limited growth potential leads to a convergence of the two business models, which requires new forecasting and optimization methods to be developed over the coming years.
Journal of Revenue and Pricing Management (2012) 11, 481–484. doi:10.1057/rpm.2011.47; published online 23 December 2011
Keywords: low cost carrier; traditional airlines; fare fences; fare rules and restriction; auxiliary revenue; fare families
LOW COST CARRIER (LCC) – A
SUCCESSFUL BUSINESS
MODEL
The LCC model is certainly a successful business model in the airline industry. Although there have been a few LCCs already during the
1980s and 1990s, since the beginning of the last decade the number of LCC has increased drastically. Originally started in the United
States followed by Europe, today the number of airlines operating the low cost business model is growing constantly and rapidly in
The impact of low cost carrier on the future of pricing and revenue management
Received (in revised form): 12th November 2011
Dieter Westermann
Qatar Airways, Qatar Airways Tower 2, Doha, State of Qatar
Dieter Westermann holds the position of Senior Vice President RM Strategy and Solutions at Qatar Airways, the national carrier of the State of Qatar. He has more than 20 years of experience in revenue management business processes and systems, as well as in the area of pricing, reservations and distribution. During his career in the airline business, he worked for multiple carriers including Lufthansa and Swissair. He also got insight into the perspective of system providers, while he worked at Lufthansa Systems in the position of
Director Portfolio Management and Innovations.
Correspondence: Dieter Westermann, Qatar Airways, Qatar Airways Tower 2, Doha, State of Qatar
ABSTRACT The Low Cost Carrier (LCC) business model has changed the airline industry significantly over the previous decade. However, the traditional airlines responded to the newcomers and times are more challenging for the LCCs today. Limited growth potential leads to a convergence of the two business models, which requires new forecasting and optimization methods to be developed over the coming years.
Journal of Revenue and Pricing Management (2012) 11, 481–484. doi:10.1057/rpm.2011.47; published online 23 December 2011
Keywords: low cost carrier; traditional airlines; fare fences; fare rules and restriction; auxiliary revenue; fare families
LOW COST CARRIER (LCC) – A
SUCCESSFUL BUSINESS
MODEL
The LCC model is certainly a successful business model in the airline industry. Although there have been a few LCCs already during the
1980s and 1990s, since the beginning of the last decade the number of LCC has increased drastically. Originally started in the United
States followed by Europe, today the number of airlines operating the low cost business model is growing constantly and rapidly in