Lazy Low-Cost Airlines Distinct from Ultra-Low-Costs

Lazy Low-Cost Airlines Distinct from Ultra-Low-Costs

World Travel Market’s aviation programme on Tuesday started with Wizzair’s boss introducing the concept of “lazy low-cost” into the conversation.

Speaking at the event today in London, Jozsef Varadi, chief executive of Hungarian budget carrier Wizzair, said “Lazy low-cost” airlines will be undercut by two dominant “ultra-low-cost” brands in Europe.

He said: “I think there is low cost and lazy low-cost. Only Wizz and Ryanair are low cost. The likes of Easyjet and Norwegian, we would call them lazy low-cost.”

Varadi said he would not veer from this course by introducing things like allocated seating. “We want to be even more low cost than before. We see more space available to us as other vacate that space. It is all about price and cost. This is what we are betting on.”

Ryanair still boasts of its low cost base, but has become more customer-friendly and is developing new web, mobile and ancillary products.

Ryanair’s flight operations director Peter Bellew told WTM that a new research facility, Ryanair Labs, was busy recruiting the best brains from Google, Linked In and other online brands in preparation for a massive online upgrade next spring.

“We are doing it on a Ryanair speed, everything has to happen at warp speed.”

Bellew said a Trip Advisor-style site with much more diverse product would be launched.

“We are looking at building our own travel agency, maybe a full price comparison site for all airlines. It may even be transactional. It is still early days with travel and the internet. We’re on Chapter One of about 40 chapters.”

He said Ryanair’s more customer-friendly policy was paying dividends.

“I think there was a tremendously nice company bottled up willing to escape.”

Women travellers in particular were welcoming the changes regarding hand luggage, which now permits two pieces. “Half the world’s population, thankfully, are women and they were

not booking with us. They were putting their handbags under their coats, inside other bags,” Bellow said.

Both carriers are targeting expansion eastwards. Ryanair has Cyprus in its sights and Wizz plans more in eastern Europe. Wizz, set up in 2004, now operates in 11 countries but Varadi said budget airline penetration was running at less than 4% in Eastern Europe. “In the UK, 10 years ago, it was 30-40%”.

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About World Travel Market

World Travel Market, the leading global event for the travel industry, is the must-attend four-day business-to-business exhibition for the worldwide travel and tourism industry.

More than 50,000 senior travel industry professionals, government ministers and international press, embark on ExCeL – London every November to network, negotiate and discover the latest industry opinion and trends at WTM.

WTM, now in its 35th year, is the event where the travel industry conducts and concludes its deals.

WTM 2013 generated more than £2 billion of travel industry contracts, revealed independent research by Fusion Communications.

WTM is owned by the world’s leading events organiser Reed Exhibitions (RE), which organises a other portfolio’s of travel industry events including IBTM Events, the world’s leading showcases for the meetings and events industry and International Luxury Travel Market events.

In 2013, RE held more than 500 events in 40 countries bringing together more than six million people from around the world generating billions of dollars in business.

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Reed Travel Exhibitions (RTE) is the world’s leading provider of exhibitions in the travel and tourism industry, with a wide-ranging portfolio of 21 international events in 14 countries throughout the Americas, Europe, the Middle East, Asia Pacific and Africa.

Its market-leading, business-to-business events cover all elements of travel and tourism, including leisure travel, luxury travel, meetings, events, incentives and business travel, as well as golf, ski and spa travel.

RTE is part of Reed Exhibitions.