Airlines and Cheap Flights

In these difficult economic times, many companies are struggling to maintain their business. According to the companies that thrive, the rule of supply and demand takes precedence in any good business as well as meeting public demand.

Cheap Flights are a Priority

Because today’s economy presents financial challenges to many individuals and families almost everyone is looking for ways to cut costs. This makes cheap flights a priority for anyone who must travel. Because many individuals are limiting their expenses, few want to spend money to go on an expensive vacation. To lure customers and maintain appeal to the public many airlines are lowering their prices.

Cheap Flights and Competition

Many in the airline industry had already recognized the value of lowering ticket prices and attracting customers. The enterprising individuals who recognized this trend developed new low-budget airlines. The new low-budget airlines that were developed kept airline ticket prices low by eliminating the luxuries that customers couldn’t afford. Frills and extra services were eliminated or kept to a minimum.

Such amenities as alcoholic beverages and free meals were eliminated and many flights were short and direct. These measures help to lower the cost of operating the airline. In addition the airlines made arrangements for obtaining fuel at reasonable cost.

Airlines and Fuel Prices

An airline has many expenses, many employees and requires much coordination for safe and efficient operation but one of the major necessities is fuel for the airplane. The fluctuating price of fuel can cause fluctuations in ticket prices too.

Cheap flights are possible despite the world situation of rising fuel prices because astute airline businesses plan ahead for rising fuel prices. Some airlines contract to purchase fuel at fixed prices, so if the price rises the airline will still pay the lower fixed price.

The only problem with a fixed price arrangement is that the airlines must pay the fixed price even if the price of fuel falls. With the current high price of fuel, the airlines that use fixed pricing have the better bargain and the lowest prices.

Cheap Flights and Economics

In these difficult economic times few people can afford to travel for fun and leisure. Travel is limited to making trips only when necessary and usually by using the cheapest means of transportation. Because many consumers are basing their choice of transportation on price, the airlines can only compete by lowering their costs. During 2009 this has resulted in a steep decrease in airline ticket prices.

A Vacation that Involves Travel

Those who want to travel for a vacation or who want to visit a distant relative may be surprised to learn that air travel may be an affordable option. Prices are dropping as airlines compete within the travel industry for customers.

Although trains, buses and other modes of travel have traditionally been cheaper than airline flights these modes of ground travel are slower. Many customers simply could not afford to travel by plane and opted for ground travel.

With lowered prices and cheap flights, the airlines can now compete with ground travel and the added benefit of speedy travel makes cheap flights an appealing option for the customer who is considering any form of travel.

The Competition

The difficult economy has not just affected individuals; it has also affected large businesses. The airline industry is included in the list of businesses facing economic difficulties. Accordingly the airlines must attract customers to remain in business.

Because unnecessary travel expenses and vacations are among the first expenses eliminated by a public that is maintaining a budget, the airline industry has to reduce ticket prices to attract customers. The reduced ticket prices and cheap flights have placed the airlines in competition with all of the travel industry. These businesses are essentially competing for the same customers and ticket prices are their main customer attraction.