Rappler Animate: How can budget airlines offer low fares?

MANILA, Philippines – The volume of airline passengers from, to, and within the Philippines has been growing leaps and bounds since airlines introduced low-cost air travel in 2005. 

In 2012 alone, low fares and industry competition helped boost local air travel by almost 10% with passenger traffic surpassing the 20-million mark. No-frills airlines have put a global spotlight on Philippine skies: the 80% penetration rate is the highest in the world.  

Budget airlines typically offer fares that are about 30% lower than traditional, or legacy, carriers. How has this been possible? 

This Rappler Animate explains the different factors that make affordable fares possible. It also gives tips on how to avail of the promo fares. 

The airlines use intricate revenue forecasting models, honed by analysis of historic demand for a flight, economics and human behavior. 

Keeping operating costs low is behind the industry practice of making the non-essentials to flying optional or available for sale inflight. Shorter turnarounds and not using aerobridges at airports (usually away from big cities) translate to more time on air, also reducing overall airline costs. 

Understand the concept of “fare buckets” and when it is best to fly where. Airlines divvy up seats by price, seat availability and destination.  

Happy trip! — Rappler.com