Why is Spirit Airlines So Cheap? Let’s Take a Look Into the Low-Cost Carrier’s Pricing Model

Understanding Spirit Airlines’ Business Model

Spirit Airlines has distinguished itself in the aviation market through its ultra-low-cost carrier (ULCC) model, which offers a distinctive approach to pricing and service options. This section will dissect the components of Spirit’s business model that enable it to maintain low fares.

ULCC and Bare Fare Approach

Spirit Airlines operates as an ultra-low-cost carrier (ULCC), prioritizing basic transportation at the lowest possible fare, known as Bare Fare. This approach strips away the traditional inclusions that come with a standard airline ticket. Passengers pay for the seat and are then offered the flexibility to choose and pay for additional services and amenities separately.

Dynamic Pricing Strategy

They also utilize a dynamic pricing strategy which allows Spirit Airlines to adjust ticket prices in real-time based on demand, competitive pricing, and other market factors. This allows them to fill flights and optimize revenue while keeping base prices competitively low.

A La Carte Pricing Model

The a la carte pricing model is central to Spirit’s business strategy. It provides passengers with a low base fare known as “Bare Fare”. This low cost gives customers the control to pay for what they value.

This unbundled approach to pricing ensures that travelers are not forced to absorb the costs of services they do not intend to use, thus keeping Spirit Airlines fares low.

Cost-Cutting Strategies

Spirit Airlines implements a series of cost-cutting strategies that allow it to offer lower fares compared to many other carriers. These strategies primarily focus on maintaining a uniform fleet for greater fuel efficiency, utilizing non-traditional airports to reduce operational costs, and streamlining operations for efficiency.

Uniform Fleet and Fuel Efficiency

Uniform Fleet: Spirit Airlines operates a single type of aircraft – the Airbus A320 family. This homogeneity leads to reduced maintenance and training costs, as mechanics and pilots require knowledge and certification for only one type of aircraft. Additionally, a uniform fleet simplifies scheduling and operations.

Fuel-Efficient Aircraft: Emphasizing cost savings, Spirit’s uniform fleet consists of newer, more fuel-efficient aircraft. The Airbus A320 family, known for its fuel efficiency, aids in lowering overall fuel expenses, a significant advantage with fuel being one of the largest costs for any airline.

Non-Traditional Airports

Secondary Airports: Spirit often chooses to fly into secondary, less congested airports. These airports usually offer lower landing fees and operational costs than their major counterparts, enhancing overall cost savings for the airline.

• Examples: Flying into Fort Lauderdale rather than Miami, or into Latrobe instead of Pittsburgh

Streamlined Operations

Operational Efficiency: Streamlining operations is another pivotal point in Spirit’s cost-reduction approach. The airline minimizes turnaround times between flights, allowing for more flights per day from each aircraft. This operational efficiency translates to better utilization of assets, directly impacting the bottom line.

• Turnaround Time: Spirit aircraft spend less time on the ground and more time in the air, resulting in increased revenue opportunities

Pricing and Fees

Spirit Airlines maintains affordability by offering low base fares with additional fees for amenities that are typically included in the ticket prices of other airlines. They operate on a fee-based business model which allows passengers to customize their travel experience.

Baggage Fees and Policies

Spirit Airlines charges for both carry-on and checked baggage. Passengers are allowed one free personal item that fits under the seat. Baggage fees vary but are generally lower when paid for during the initial booking or before online check-in. Fees increase at the airport and for additional or overweight bags.

• Personal Item: Free (limited size)
• Carry-On Bag: Starts at $37 when paid during booking
• First Checked Bag: Starts at $30 when paid during booking
• Additional/Overweight Bags: Higher fees apply

Seat Selection and Extra Legroom

Passengers have the ability to choose their seats, but seat selection incurs additional charges. Standard seats cost less, while options like The Big Front Seat™, offering more space and comfort, are more expensive. For those seeking extra legroom, Spirit’s “Big Front Seats” or exit row seating present higher fee options.

• Standard Seat Selection: Starts at $5
• Big Front Seat: Starts at $20
• Exit Row Seating: Additional fee for extra legroom

Change and Cancellation Fees

Spirit Airlines’ pricing strategy includes fees for changes or cancellations, which are typically lower when done in advance. However, in comparison to other airlines, Spirit has been recognized for having no change fees, although a fare difference may apply for any changes made.

• Change/Cancellation Fee: Starts at $39 if done 60+ days before travel
• Fare Difference: Charged in addition to any change fees if applicable

By unbundling services, Spirit Airlines keeps its ticket prices cheap and allows passengers to pay only for the services they choose to use.

On-Board Offerings and Services

Spirit Airlines operates on a business model that hinges on basic transportation, allowing passengers to customize their experience with a wide range of optional services and products for an additional fee. The carrier’s a la carte approach empowers customers to pay only for the amenities they want, contributing to the low base fare that defines Spirit’s market niche.

A La Carte Add-Ons

Spirit Airlines structures its ticket prices with the philosophy of “travel light, pay less”. Passengers start with an unbundled bare fare which includes a seat and a personal item that fits under the seat in front of them. They tailor their travel experience by choosing from various add-ons:

• Seat Selection: For an additional charge, passengers can select their preferred seats
• Bags: Carry-ons and checked bags incur extra fees; prices vary by route and booking
• Priority Boarding: Offers the convenience of early boarding at an extra cost
• Flight Flexibility: Gives the option to modify bookings for a non-refundable fee

Food and Beverage Options

In-flight refreshments on Spirit Airlines are not included in the ticket price, allowing for cheaper base fares. The airline offers an array of drinks and snacks that passengers can purchase during the flight:

• Drinks: Includes a selection of sodas, juices, alcoholic beverages, and hot drinks
• Snacks: A variety of snack items are available for purchase

Note: Passengers may purchase food and beverage items using a credit card, as Spirit flights are cashless.

Booking and Check-In Process

Spirit Airlines’ approach to booking and check-in is streamlined to maintain affordability. They offer various deals and employ dynamic pricing to keep travel costs down. The boarding process is straightforward, allowing passengers to obtain their passes with ease.

Booking Deals and Loyalty Programs

Spirit Airlines often provides exclusive deals to passengers seeking affordable travel options. They utilize dynamic pricing, which means the fare prices can change based on demand and proximity to the flight date. For consistent travelers, Spirit offers a loyalty program called Free Spirit which allows members to earn points and achieve savings on future flights. Subscribers to the Spirit Saver$ Club also receive discounts on fares and baggage fees.

Boarding Pass and Process

Passengers have the ability to check in and print their boarding pass at home or use the mobile app to get a digital version, which further contributes to cheap fares by reducing check-in costs at the airport. The boarding process is facilitated by groups, clearly marked on each boarding pass, allowing for an efficient and orderly way to board the aircraft. Spirit’s process is designed to be rapid to minimize turnaround time, which is another cost-saving strategy that the airline employs.

Passenger Experience

When traveling with Spirit Airlines, the passenger experience is shaped largely by the airline’s budget-conscious approach, which offers the essentials of travel while allowing travelers to customize their journey based on their needs and preferences.

Legroom and Seat Comfort

Spirit Airlines operates with a dense seating configuration to maximize capacity. The legroom, which is the distance between a point on one seat and the same point on the seat in front of it, typically measures about 28 inches. It is less than what is found in some other airlines, appealing to those who prioritize saving on ticket costs over spacious seating. Seats are pre-assigned if travelers do not pay extra, and options for more legroom are available at an additional cost.

• Average legroom: 28 inches
• Seat selection: Available for a fee
• Extra legroom options: Available (Big Front Seat™)

Cabin Crew and Safety Protocols

Spirit Airlines’ cabin crew members are trained to maintain professional safety standards on every flight. They provide passengers with necessary safety instructions and are equipped to handle emergencies. Despite the airline’s low-cost model, safety protocols are not compromised.

• Safety briefing: Conducted by cabin crew for all passengers
• Emergency equipment: Routinely checked and ready for use
• Safety standards: Compliant with FAA regulations

Market Position and Competitor Comparison

Spirit Airlines holds a distinctive position in the airline industry as a leader in budget travel. It provides travelers with a basic, no-frills flying experience at a lower cost compared to many competitors. Spirit’s business model focuses on cheap flight options, positioning itself clearly in the sector of low-cost carriers.

Comparison with JetBlue and Other Carriers

Spirit Airlines and JetBlue represent two different approaches within the airline industry, particularly concerning budget travel. Spirit Airlines maintains a strict low-cost, no-frills model, charging for various extras that are typically included with other carriers. Their aircraft are configured with more seats to maximize capacity and ultimately reduce costs per passenger. In contrast, JetBlue offers a more balanced approach, providing a modestly higher level of comfort and amenities, which are often reflected in slightly higher fares. Now that we know why is Spirit Airlines so cheap, let’s talk how the airlines company compares to other budget carriers.

Comparatively, other low-cost carriers operate along a spectrum with varying degrees of service and pricing strategies. All these carriers, including Spirit Airlines, tailor their services to accommodate budget-conscious travelers. Their business models are structured to provide cheap flights by reducing operational costs and offering a range of additional paid services.

The main commonality among these carriers, including Spirit, is their focus on cost-saving strategies like point-to-point routes, online sales dominate distribution, and utilization of secondary airports where possible. These measures help maintain a lower pricing strategy, appealing to those who prioritize cost over additional travel comforts.