|Type of paper:||Essay|
|Categories:||Health and Social Care Human Resources Law Society|
Spirit Airlines is a company that began working in 1990. Since then its destination included flying out in various cities and over the last decade the company had grown by bounds and leaps. Throughout its operation, Spirit Airlines committed to offering excellent services, but at low prices than other airlines. By using the 'no-frills approach,' the company became famous because of its technique of attracting the customer due to its bargain particularly those that had challenges carrying their pocketbooks. Based on the studies done by Kotler & Armstrong (2016), Spirit Airlines uses its pricing practice as frill control by directing the customers due to lower prices.
Question 1. Does Spirit's Pricing Strategy sustainable?
The services offered by Spirit Airlines does not differ from other airlines. All goods and services including the pricing on the terminal and airplane are also similar to the trend of airlines. Most companies offer discounts on boarding fees, baggage fees, etc., to attract their customers. Based on the strategy Spirit airlines are applying by reducing their prices, it does not make a significant difference as compared to other airlines in the market.
The success of Spirit, in this case, will continue to grow despite it having low prices by adapting to other business practices. However, according to Kotler & Armstrong (2016), companies that set more economical prices than the market price and maintain lower costs tend to have higher sales and profits. Therefore, the pricing strategy set by a company is sustainable due to the model they use (Mohamed & Elias, 2014). There is no guesswork in any way that the Spirit Airline's customers are going to receive anything special from the company, but regular services at reduced prices.
The only difference is the list that shows the items and service cost. Therefore, if the passengers don't realize Spirit's prices before flying, they end up spending more money when using other airline services. However, if the passengers want to buy refreshments while traveling, extra charges are added. In general, the pricing strategy applied by Spirit Airlines does not have much accomplishment notably by adding values or improving the passenger's experience.
Question 2. Recommended changes
Based on the case study and reviews concerning the level of service offered by Spirit Airlines, it must make noticeable changes. Since the best offers are given to their passengers on whether to fly with their airline or not, they should offer other services with the same prices to persuade the customers (Mohamed & Elias, 2014). This is because most passengers have often shown that they always want superior's services but at bare bones prices. For instance, they should execute their functions by making traveling fast, in an expeditious manner, but at the cheapest price prices. This is what the company excels in doing, and that's why it makes it the number one flying company with more affordable rates around the world.
The idea behind their strategy should be maintained because that is what makes it famous. The company should also embrace more friendly services on top of their prices to attract more passengers. Since other airlines mind the amount they spend while offering their services, the Spirit Airlines will outshine them because of their excellent services. Such assistance may include the addition of gifts whenever their repeat clients fly with them fluently for two weeks. This way, their loyal clients will never want to use other airlines no matter any situation unless the company terminates their services due to particular challenges.
Kotler, P., Armstrong, G. (2016). Principles of Marketing. Boston, MA: Pearson Education Inc.
Mohamed, H., & Elias, N. F. (2014). The determinants of airline online services satisfaction: A conceptual model. 2014 International Conference on Computer and Information Sciences (ICCOINS), 41-60. doi:10.1109/iccoins.2014.6868434
Spirit Airlines. (2017). About Spirit. Retrieved from; https://www.spirit.com/AboutUs.aspx#
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Company Case Spirit Airlines. (2022, Sep 06). Retrieved from https://speedypaper.com/essays/company-case-spirit-airlines
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