Comparison Of Low Cost And Full-Service Airlines On Domestic Flight Routes – Jetstar Vs Qantas

Price

There have been numerous change in the aviation industry in the recent past the biggest being the increase in the number of low-cost carriers that offer services at a much lower price as compared to the full-service airlines (Susanne, 2014). Low-cost carriers have brought about a decrease in fares charged on for a flight to various destinations mainly by doing away with the complimentary meals and additional luxuries synonymous with full-service airlines (Ching, 2016). The rapid increase in the number of low-cost carriers has brought about an increase in the level of competition forcing the major industry players to establish subsidiaries that provide cheap flight services (Sven and Michael, 2016). This essay compares the services at Jetstar and Qantas airlines on the basis of schedule, comfort, convenience, and image. The comparison is based on a flight from Avalon to Sydney Australia.

Price

A return ticket on economy class from Avalon to Sydney non-stop on Jetstar costs 264 Australian dollars while the same ticket costs 826 dollars on Qantas Airways (Jetstar Airways 2018). There thus exists a huge price disparity between full-service airlines such as Qantas and low-cost carriers such as Jetstar. This is mainly because the economy package at Jetstar is not as sophisticated as the one at Qantas. For instance, Jetstar economy class does not have the recliner seats offered at Qantas. Additionally, there are fewer meals to choose from. Jetstar thus minimizes its prices by reducing comforts and sticking to the essentials. Qantas, on the other hand, serves a variety of expensive foods and snacks such as Barramundi poached coconut sauce. The economy class also has soft recliner seats as well as video screen entertainment all for the delight of travelers. Such non-essentials are the main contributors to the higher fares in full-service airlines as compared to low-cost carriers.

Jetstar

Qantas

Schedule

Jetstar flies from Avalon to Sydney five to six times a day which makes it convenient for passengers traveling to these destinations. There is a daily departure from Avalon Melbourne airport to Sydney at 6.00 am and additional departures at 9.05 am on Tuesdays, Thursdays, and Saturdays among other daily departures 1:05, 3:45, 5:50 and 8:30 pm. Arrivals from Sydney occur daily at 8:35 am, and 9:30 am respectively.thre are also arrivals at 12:35 pm on Tuesdays, Thursdays, and Saturdays. Additionally, there are other daily arrivals at 5:10 pm, 8:00 pm and 11:35 pm respectively (Flightradar, 2018). There are however limited return flights from Avalon Melbourne to Sydney on Qantas airline as most flights mainly target international destinations. Jetstar, therefore, has a more time-friendly schedule for domestic travelers to and from Sydney.

Jetstar Avalon to Sydney weekly schedule

Comfort

Qantas offers a higher level of comfort as compared to Jetstar airline. This is evidenced by the variety of meals provided by the international airline. The Qantas menu contains global cuisines such as mushroom tortellini and Stir Fried Noodles with Black beans & Pepper Sauce (Mavis, 2015). There even exists recliner seats with side wings and soft cushioning to ensure comfort during the flight. The economy class also has adjustable headrests as well as personalized video and audio entertainment for maximum customer satisfaction and experience during the travel. There are also adjustable mood lights and spacious areas to store personal luggage. Jetstar also offers a certain level of comfort although it is not complimentary as is the case for passengers on Qantas airline. For instance, passengers on Jetstar have the option of pre-purchasing meals while booking the flight.

Schedule

Convenience

Jetstar is far more convenient than Qantas airways in terms of the travel schedule. Jetstar offers more flights to and from Sydney on a daily basis, unlike Qantas which provides a limited number of flights to these destinations. Additionally, Jetstar is more price friendly than Qantas airlines. What’s more, it offers passengers the freedom to purchase non-essential services allowing one freedom to enjoy similar services as those in full-service airlines. Qantas airline, on the other hand, lacks flexibility since it includes prices of non-essential services on to the fare. The lack of price flexibility thus limits consumer choice as passengers may end up paying for some frills which they do not intend to use.

Image

Full-service airlines often bare a sophisticated and more appealing image as compared to low-cost carriers (John, 2016). The attractive image mainly results from the emphasis on comforts that is synonymous with full-service airlines. The airlines may often come across as luxurious or a preserve of the rich. Low-cost carriers, on the other hand, seem to bare minimal flamboyance are thus only attractive due to their cheap fares. Low-cost carriers, however, bear less appeal compared to full-service airlines (Doganis, 2010).

The passenger segment(s) targeted Jetstar

Jetstar mainly focuses on business and leisure travelers as they make a huge bulk of air passengers. For travelers seeking leisure, the airline targets mostly singles and young couples ranging from 18 to 34 years. This is because people in this age bracket are known to spend large amounts of money on travel, fashion as well as fancy food restaurants. Additionally, around 72% of this demographic earn more than the Australian annual wage average of 70,000 dollars and have minimal family responsibilities which means they have more to spare on leisure activities. Jetstar also targets families between 25-44 years as they are majorly composed of working professionals who have enough to save for on vacation and holiday activities. Business travelers between the age of 35 and 59 are also a significant target of Jetstar as they hold executive and managerial positions and are therefore likely to due to financial and other work-related commitments. The above segments earn more than the average annual salary which translates into high disposable income. High disposable income, therefore, means that the category of individuals can incur costs in air travel making them potential customers Jetstar is divided mainly into business and economy classes. Qantas, on the other hand, targets mostly leisure and business travelers aged 25 because they make up a majority of the Australian middle and high-income earners. This demographic is likely to afford the high prices charged by full-service airlines such as Qantas. Qantas also uses behavioral analysis in its passenger segmentation (Qantas, 2018). For instance, the airline has divided the airplane into various cabins that satisfy the different needs and wants of the passengers. First class passengers pay the highest amount and are awarded the most personalized services available. It is then followed by the business class which offers services that enable the passenger to work and go about his/her official duties in a serene and conducive environment. Below the business class are the premium economy and economy classes which offer relatively fewer frills as compared to the first two classes.

Conclusion

Qantas airline mainly operates in international destinations and thus offers services primarily to international clients that seek comfort and luxury in the course of their travel (Stephen, 2012). In doing this, Qantas retains its brand and reputation as one of the oldest and most successful full-service airlines in the world. As a result, the airline maintains its loyal clients who associate with the brand and nature of products offered by the airline. By establishing Jet star as a subsidiary, Qantas was able to acquire a huge chunk of the market that prefers low-cost services. Through Jetstar, Qantas is also able to ward off competition resulting from the rapidly emerging low-cost carriers in the aviation industry.

References

Ching, M. (2016). Satisfaction of low-cost carriers. Proceedings of the 24th International Academic Conference, Barcelona. doi:10.20472/iac.2016.024.018

Doganis R. (2010). Flying Off Course: Airline Economics and Marketing (4th ed.). New York: Routledge.

Flightradar. (2018). Melbourne Avalon Airport. Retrieved from https://www.flightradar24.com/

Jetstar Airways. (2018). Direct flights to Melbourne. Retrieved from https://www.jetstar.com/au/en/cheap-flights/melbourne-avalon

John G. (2016). Air Transportation: A Management Perspective (8th ed.). London & New York: Routledge.

Mavis C. (2015) Target market analysis: Jetstar. Retrieved from https://www.slideshare.net/MavisChng/target-market-analysis-jetstar-aud-mavis-chnghttps://www.slideshare.net/MavisChng/target-market-analysis-jetstar-aud-mavis-chng

Qantas. (2018). International Economy. Retrieved from https://www.qantas.com/au/en/qantas-experience/travel-classes/economy.html

Stephen H. (2012). Straight and Level: Practical Airline Economics (3rd ed.). Hampshire: Ashgate Publishing.

Susanne B. (2014). Strategic Marketing Approaches Within Airline Management (1st ed.). Hamburg: Anchor Academic Publishing.

Sven G and Michael L. (2016). The Low-Cost Carrier Worldwide (2nd ed.). New York: Routledge publishers.

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