The pricing strategy of Frontier Airlines, often characterized by significantly lower fares compared to legacy carriers, stems from a business model focused on unbundling services and aggressively minimizing operational costs. This approach prioritizes offering a basic airfare while charging separately for nearly all ancillary services, such as baggage, seat selection, and even carry-on bags in some instances. This allows the airline to attract price-sensitive travelers who may not require these additional services.
This model’s effectiveness hinges on attracting a high volume of passengers and carefully managing overhead. The resultant savings are then passed on to customers in the form of reduced base fares. This strategy has become increasingly prevalent in the airline industry, offering consumers more choice and control over their travel expenses, while also creating competitive pressure for other airlines to adapt and adjust their pricing structures.
