Low Cost Business Travel So I know this website concentrates on the premium segments of air travel, but let me briefly explain my question.

6 replies

aldrigsomandre

Qantas - Qantas Frequent Flyer

Member since 31 Aug 2015

Total posts 86

Low Cost Business Travel

So I know this website concentrates on the premium segments of air travel, but let me briefly explain my question.

I moved to Australia two years ago from Europe and I run my own business, which requires frequent travelling. And I do not want to spend a fortune on flights less than 2 hours. Given the distances between countries in Europe is lesser compared to the cities in Australia, as the companies try to decrease their travel budgets, flying low cost airlines like Ryanair, Norwegian, Vueling and Easyjet is common practice.

When I came to Australia, I saw that airlines like Jetstar and Tigerair are still significantly more expensive compared to the European LLC's for the same length flights. I watched two talks given by Michael O'leary, the CEO of Ryanair and the changing business travel practices in Europe. A Youtube search would reveal these talks. They are very interesting.

I was wondering if you guys think, as business travellers in Australia, there is a chance of LLC's taking over the point-to-point travel market in Australia.

Disclaimer: I'm not having a go at business class travel. Just wondering if the landscape will change in Australia too.

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

Emre,

It comes down to demand and supply.

The European market is bigger (more customers) and is more fragmanted. This has encouraged the growth of supply and in particular the LCCs. The EU free movement rules further plays into this.

There is insufficient demand in Australia to warrant the existence of many players. As such price competition is more subdued. On the flip side, the competition in Australia is focused on non-price factors.

At the same time, the main airports in Australia are not over-capacity to the point that it makes good business sense for LCCs to open up routes from secondary airports, which is a feature of the LCCs growth in Europe. Here again the demand and supply of the Australian market makes the demand for LCCs somewhat subdued.

Chris Chamberlin

Member since 24 Apr 2012

Total posts 1,109

In my mind it comes down to dollars and sense - I've often looked to cut travel costs by booking with LCCs like Jetstar and Tiger for shorter flights, but once you add on all the extra charges for seat selection, points/status credits, credit card surcharges, baggage if needed and food, the numbers have always been higher than just booking with Qantas or Virgin Australia, - ensuring I'll have easy lounge access before the flight, can earn points+status without paying extra, will get some kind of refreshment on board, have baggage included and can select my seat without being charged extra.

Added to that, I like the flexibility that Qantas and VA provide on the domestic routes that I fly (mainly Brisbane-Sydney and Brisbane-Melbourne), which means I can switch to an earlier flight if I want to get moving earlier or there are alternative services available within a reasonable window if there's a delay or cancellation.

Australian LCCs are fine if you're flying with just cabin baggage, don't care where you sit or what you eat, but for myself and likely many business travellers, the overall 'value' of the ticket is what's most important, not necessarily the price.

moa999

Qantas - Qantas Frequent Flyer

Member since 02 Jul 2011

Total posts 835

I would also say that Australia doesn't have the secondary airports, nor the cheap labour that some European countries have.

I think there will continue to be room for both LCC and greater service carriers (I don't tend to think of them as full service domestically)

Looking

Member since 10 Aug 2015

Total posts 29

The European low cost airlines are given financial incentives from local governments to land at smaller airports.

Further the limited competition in Oz means there are no equivalents to Bergamo or Stansted or Southend in Australia (except perhaps Toowoomba Wellcamp).

Looking

Member since 10 Aug 2015

Total posts 29

By the way a good call out - despite the lack of the word "luxury" or "premium" or "air" in the website name it does focus mainly on the more expensive modes of business travel.

Yet to see any reviews of rail services domestically or abroad, ways to make the most out of taxi apps, or how to travel for the best value and efficiency on the low cost airlines.

Chris Chamberlin

Member since 24 Apr 2012

Total posts 1,109

Hi Looking,

Just to share what you might have been 'looking' for on AusBT but may have missed. :P

(Australian domestic train services aren't really a primary method of business travel beyond the airport trains as we don't have the high-speed rail networks of other countries, so we'd not review a train service from Brisbane to Sydney, for example, when you can fly there in 1.5 hours from gate to gate.)

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