I fly around Europe for €30-€100 per return flight without a checked bag. Yet Ryanair are one of the most profitable airlines in the world yet charging such cheap prices. Are other airlines just not as efficient as low cost airlines?
In: Economics
1. Low cost airlines have a bunch of extra add-ons: choosing your own seat, carry-ons, checked luggage being above a certain weight, etc.
2. The low cost of the tickets attract lots of customers. Think about hotels. One hotel costs $1000+ per night but a nearby hotel only costs $100 per night. Which hotel are the poorer people more likely to go there?
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