Table of Contents
Introduction And Abbreviations
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- Introduction
- Other relevant reports
- Definition
- Abbreviations and terms
- Terms
Executive Summary
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- Economy and lower infrastructure costs have been great benefit to discount airlines
- Intense competition
- Balancing low fares and differentiating services
- National versus regional
- Discount flyers more apt to book online
- Major airline travel occurs more often than discount travel
- Young frequent flyers a promising market for discounts
- Forecast
Market Drivers
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- Overview
- The two-pronged effect of the economy
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- Figure 1: Travel expenditures in the U.S., at current and constant prices, 1999-2004*
- Price-sensitivity
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- Figure 2: Frequency of changing flight plans to obtain best-priced ticket, November 2004
- Steep competition
- Price wars
- Domestic turf wars
- International turf wars
- The effect of short breaks
- Business travel trends
- Low prices versus loyalty…or both?
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- Figure 3: Frequent flyer programs, May 2003-April 2004
- Lower cost infrastructure
- Fuel prices
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- Figure 4: Crude oil prices, per barrel*, 2001-04
- Employment
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- Figure 5: U.S. airlines’ full-time employees 2000-03
- Consumers’ willingness to book online
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- Figure 6: Method and party responsible for making flight reservations, November 2004
Market Size & Trends
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- Figure 7: Total U.S. operating revenues of U.S. discount airlines, at current and constant prices, 1999-2004
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- Graph 1: Total U.S. operating revenues of U.S. discount airlines, at current and constant prices, 1999-2004
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Market Segmentation
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- Overview
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- Figure 8: National or regional status for each discount airline, January 2005
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- Figure 9: Discount airline total operating revenue, segmented by national versus regional, 2002 and 2004
- National airlines
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- Figure 10: Total U.S. discount airline operating revenue for national airlines, at current and constant prices, 1999-2004
- Regional airlines
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- Figure 11: Total U.S. discount airline operating revenue for regional airlines, at current and constant prices, 1999-2004
Supply Structure
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- Overview
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- Figure 12: Total operating revenue, by airline in the U.S., 2002 and 2004*
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- Figure 13: Public familiarity with discount airlines, November 2004
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- Figure 14: U.S. discount airlines and their hub cities
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- Figure 15: U.S. discount airlines services, by airline, January 2005
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- Figure 16: U.S. discount airlines and whether have premier class of service, January 2005
- Southwest Airlines
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- Figure 17: Public perception of Southwest Airlines, November 2004
- America West
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- Figure 18: Public perception of America West, November 2004
- ATA
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- Figure 19: Public perception of ATA, November 2004
- JetBlue
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- Figure 20: Public perception of JetBlue, November 2004
- AirTran
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- Figure 21: Public perception of AirTran, November 2004
- Frontier
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- Figure 22: Public perception of Frontier, November 2004
- Spirit Airlines
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- Figure 23: Public perception of Spirit Airlines, November 2004
- Other airlines
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- Figure 24: Public perception of Ted, November 2004
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- Figure 25: Public perception of Gulfstream International, November 2004
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- Figure 26: Public perception of Alaska Air, November 2004
Advertising & Promotion
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- Overview
- Southwest
- America West
- ATA
- JetBlue
- AirTran
- Frontier
- Spirit
Retail Distribution
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- How reservations are made
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- Figure 27: How personal flight reservations are usually made, by all flyers and discount flyers, November 2004
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- Figure 28: How business flight reservations are usually made, by all business flyers and discount flyers, November 2004
The Consumer
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- Introduction
- Domestic Travel
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- Figure 29: Domestic travel, January-September 2003
- Reasons for domestic flights
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- Figure 30: Reasons for travel, May 2003-April 2004
- Domestic flights for business
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- Figure 31: Domestic business travel, January-September 2003
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- Figure 32: Domestic business travel, by gender, January-September 2003
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- Figure 33: Domestic business travel, by age, January-September 2003
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- Figure 34: Domestic business travel, by region, January-September 2003
- Domestic flights for vacations/personal travel
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- Figure 35: Domestic vacation/personal travel, January-September 2003
- Foreign travel
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- Figure 36: International destinations of discount airlines, January 2005
- Reasons for foreign travel
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- Figure 37: Reasons for foreign flights, May 2003-April 2004
- Foreign personal travel
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- Figure 38: Frequency of foreign travel, January-September 2003
- Foreign business travel
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- Figure 39: Frequency of foreign business travel, January-September 2003
- Discount travel
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- Figure 40: Type of airline flown, May 2003-April 2004
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- Figure 41: Type of airline flown, by race/ethnicity, May 2003-April 2004
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- Figure 42: Number of round-trip flights taken in the past year, by all travelers and discount airline travelers, November 2004
- Discount business travel
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- Figure 43: Number of primarily business-related flights taken in past year, by all flyers and discount flyers, November 2004
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- Figure 44: How often combine personal travel and business travel, by all flyers and discount flyers, November 2004
- Perceptions of flying among discount flyers
- Rating overall level of enjoyment
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- Figure 45: Rating overall enjoyment of flying domestic airlines, by all flyers and discount flyers, November 2004
- Rating level of convenience
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- Figure 46: Rating level of convenience when flying domestic airlines, by all flyers and discount flyers, November 2004
- Rating air travel as boring or exciting
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- Figure 47: Rating level of excitement when flying domestic airlines, by all flyers and discount flyers, November 2004
- Ratings of flight safety
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- Figure 48: Rating level of safety when flying domestic airlines, by all flyers and discount flyers, November 2004
- Ratings of comfort
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- Figure 49: Rating level of comfort when flying domestic airlines, by all flyers and discount flyers, November 2004
- Ratings of flight value
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- Figure 50: Rating level of value when flying domestic airlines, by all flyers and discount flyers, November 2004
- Discount Airlines Flown
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- Figure 51: Whether flown the listed discount airline in the past year, by airline, November 2004
- Overall satisfaction with specific discount airlines
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- Figure 52: Ratings for Southwest on a number of airline aspects, by those who have flown Southwest in the past year, November 2004
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- Figure 53: Ratings for JetBlue on a number of airline aspects, by those who have flown JetBlue in the past year, November 2004
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- Figure 54: Ratings for Alaska Air on a number of airline aspects, by those who have flown Alaska Air in the past year, November 2004
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- Figure 55: Ratings for America West on a number of airline aspects, by those who have flown America West in the past year, November 2004
- Relative value of specific discount airlines by their flyers
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- Figure 56: Perceptions of whether or not gotten money’s worth, by airline, November 2004
- Frequent flyer programs
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- Figure 57: Name and type of frequent flyer programs, by discount airlines, January 2005
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- Figure 58: Frequent flyer enrollment, May 2003-April 2004
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- Figure 59: Frequent flyer enrollment, by household income, May 2003-April 2004
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- Figure 60: Frequent flyer enrollment, by race/ethnicity, May 2003-April 2004
- Frequent flyer programs: major vs. discount
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- Figure 61: Frequent flyer programs, May 2003-April 2004
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- Figure 62: Frequent flyer programs, by age, May 2003-April 2004
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- Figure 63: Frequent flyer programs, by region, May 2003-April 2004
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- Figure 64: Frequent flyer participation, by specificied discount airlines, 2004
- Summary
Future & Forecast
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- FUTURE TRENDS
- The importance of the economy
- More beating…then, joining
- Potentially rising infrastructure costs
- Competing creativity
- The evolution of discount carriers
- MARKET FORECAST
- Discount airlines
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- Figure 65: Forecast of total U.S. operating revenues of discount airlines, at current and constant prices, 2004-09
- National discount airlines
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- Figure 66: Forecast of U.S. operating revenues of national discount airlines, at current and constant prices, 2004-09
- Regional discount airlines
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- Figure 67: Forecast of U.S. operating revenues of regional discount airlines, at current and constant prices, 2004-09
- Forecast Factors
Appendix: Trade Associations
Appendix: Print Advertising
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- Overview
- Direct Mail
- Direct Mail—Business-to-Business
- Print Advertising
- AirTran Print Ad
- JetBlue Print Ad
- Spirit Airlines Print Ad
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