(14 Dec 2024, 11:52 pm)Andreos1 wrote 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.
To be fair Easyjet really aren't that cheap nowadays, especially last minute. British Airways are quite often just as competitive, especially if you want things like a case.
It's more dynamic pricing though that makes the money though, not sure you could really apply it to public buses though. I'm personally not a big fan of it either on public services, the LNER trials lately are horrific with fares through the roof.