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
Guys some of you are somewhat right but no one seems to have worked with these companies and a good portion of you is just guessing. These low cost airlines are basically a “CPA marketing affiliate” for governments, where the government pays them subsidiaries in order for them to bring customers over to them.
Yes, the add-ons, cheap tickets and massive amount of destinations help, but that’s not from where the main money comes in.
Countries want tourists, and tourism authorities gladly pay Ryanair for customers. If you ever tried to book a return trip within 24 hours, you saw that “there are no flights” and that you need to stay at least two nights at the destination. That means two hotel nights, two potential visits to the store, 4 potential restaurant meals. The longer you plan to stay, the cheaper the ticket will be.
An example, Malta spent over €20 million last year in budget airline subsidies. Google it if you don’t believe me.
Source: Worked with the Berlin tourism authority and the Maltese tourism authority
Latest Answers