(14 Dec 2024, 9:58 pm)Storx wrote Not sure airlines are a good comparison mind, they're only cheap because they charge you for literally everything else.
I'm still in the mind that singles should be more expensive to force you onto cheaper longer term tickets - sadly these tickets don't exist though and if you're a frequent traveller you're being punished because Johnny who goes to the pub once a week is where all the money is...?
It'll be interesting to see how Arriva act on this mind, since their fares are substantially dearer than the new railway line.
A quick Google search finds that 22 percent of Easyjet profit in 2022 was made by ancillary sales. Ticket sales still form the backbone of their revenue.
High productivity, a strong cost culture and selling seats that attract the elastic customer is where they do well.
10 seats at £2.50 vs 20 seats at £2.00...
Or 40 seats at £1.50.
Stack em high, sell em cheap. Take people where they want to go and they will go.
The traditional model used has long gone.
People have made the modal switch because the original option wasn't reliable, didn't take them where they wanted to go when they wanted to go and cost a fortune.
Cheaper and quicker options won over.
That applies to road, rail and air.
It's why Megabus did so well over National Express and why Flixbus and Ember are making moves.
Ditto your BA vs Easyjet or Ryanair.
Or your Lumo vs LNER.